deflation Posted July 21, 2010 Share Posted July 21, 2010 The company had originally hoped to sell the shares at between 200p and 275p each, which would have valued Ocado between £800m and £1.1bn. However, Ocado has never made a profit and many observers said the price was too high. Late on Tuesday, Ocado set a new price range between 180p and 200p. http://www.bbc.co.uk/news/business-10708803 I read on here that most people thought it would be a mistake to float them. Seems the market thinks so too. Quote Link to comment Share on other sites More sharing options...
Timak Posted July 21, 2010 Share Posted July 21, 2010 The company had originally hoped to sell the shares at between 200p and 275p each, which would have valued Ocado between £800m and £1.1bn. However, Ocado has never made a profit and many observers said the price was too high. Late on Tuesday, Ocado set a new price range between 180p and 200p. http://www.bbc.co.uk/news/business-10708803 I read on here that most people thought it would be a mistake to float them. Seems the market thinks so too. In 10 years of trading they've never made a profit. Waitrose could wipe them out at a stroke of a pen. Fantasy economics to see them as a £500m company let alone £1b. Quote Link to comment Share on other sites More sharing options...
finallysold Posted July 21, 2010 Share Posted July 21, 2010 The company had originally hoped to sell the shares at between 200p and 275p each, which would have valued Ocado between £800m and £1.1bn. However, Ocado has never made a profit and many observers said the price was too high. Late on Tuesday, Ocado set a new price range between 180p and 200p. http://www.bbc.co.uk...siness-10708803 I read on here that most people thought it would be a mistake to float them. Seems the market thinks so too. i dont understand this whole business model. at the end of the day they are couriers and not particularly cheap ones at that. tesco , waitrose, asda sains etc have their own delivery service. everytime i looked at ocado when they sent you money off vouchers, they were still not particularly attractive. i think this is the power of marketing Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted July 21, 2010 Share Posted July 21, 2010 The company had originally hoped to sell the shares at between 200p and 275p each, which would have valued Ocado between £800m and £1.1bn. However, Ocado has never made a profit and many observers said the price was too high. Late on Tuesday, Ocado set a new price range between 180p and 200p. http://www.bbc.co.uk/news/business-10708803 I read on here that most people thought it would be a mistake to float them. Seems the market thinks so too. Its not a mistake to float them , its a mistake to buy them. If this float gets of the ground id expect criminal actions being taken within 3 years when the company is wound up. Maybe there are a few pension funds managers out there that couldnt give a toss what they are buying and it will get off but timing wise i think it would have to be within the next month Quote Link to comment Share on other sites More sharing options...
deflation Posted July 21, 2010 Author Share Posted July 21, 2010 (edited) Fairfield Energy have pulled their flotation and they're an oil company, not a grocery delivery business. http://www.guardian.co.uk/business/2010/jul/15/fairfield-abandons-floatation I'm not sure if flotations ever fail, i.e. not all shares sold, or have to be bought by the directors. Methinks there'll be a few 'consultants' raking in their fees over this one, and being the only ones who make any money. Edited July 21, 2010 by deflation Quote Link to comment Share on other sites More sharing options...
exiges Posted July 21, 2010 Share Posted July 21, 2010 Already down to 160p in "grey trading" I gather. I can't believe they raised the money to be honest, I saw no value in it. Quote Link to comment Share on other sites More sharing options...
Concrete Jungle Posted July 21, 2010 Share Posted July 21, 2010 On a brighter note Ocado shares may enable more fools to be parted with money that could have been used to bid up house prices. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted July 21, 2010 Share Posted July 21, 2010 Junk / Scam by ex Goldman staffers, with the usual suspects like Michael Grade at the trough face. Let them burn. Quote Link to comment Share on other sites More sharing options...
tim123 Posted July 21, 2010 Share Posted July 21, 2010 Fairfield Energy have pulled their flotation and they're an oil company, not a grocery delivery business. http://www.guardian.co.uk/business/2010/jul/15/fairfield-abandons-floatation I'm not sure if flotations ever fail, i.e. not all shares sold, or have to be bought by the directors. Methinks there'll be a few 'consultants' raking in their fees over this one, and being the only ones who make any money. Share sale are normally underwritten by the brokers who are touting them. This costs lots of money as the broker will take a large loss if the offer fails. Orcado have failed to find enough brokers to underwrite this offer so if it failes then the company simply doesn't get its money Quote Link to comment Share on other sites More sharing options...
tim123 Posted July 21, 2010 Share Posted July 21, 2010 Already down to 160p in "grey trading" I gather. I can't believe they raised the money to be honest, I saw no value in it. They haven't - yet. They are still punting for mugs. Quote Link to comment Share on other sites More sharing options...
newbonic Posted July 21, 2010 Share Posted July 21, 2010 i dont understand this whole business model. at the end of the day they are couriers and not particularly cheap ones at that. tesco , waitrose, asda sains etc have their own delivery service. everytime i looked at ocado when they sent you money off vouchers, they were still not particularly attractive. i think this is the power of marketing I think Ocado got namechecked on the mumsnet 'secretly poor' thread, something along the lines of 'no more Ocado vans pulling up outside the house anymore, I'll have to shop at Asda'. So no compelling reason to use them, just image that impresses the impressionable. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted July 21, 2010 Share Posted July 21, 2010 http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7902459/Ocado-shares-tumble-after-London-flotation.html The fall came on top of an eleventh hour cut in the IPO price on Tuesday afternoon, leaving initial valuations of the chain looking massively over-ambitious. The share price fall on the first day of trading means that Ocado’s stock is trading some 40pc below the top of its indicative price range just one day ago.Shares in the loss-making retailer were trading at 161p by mid-morning on Wednesday, down from a listing price of 180p. On Tuesday afternoon Ocado, which sell Waitrose groceries over the internet, was forced to cut its IPO price by 20pc: to 180-200p from a previous range of 200-275p. Tim Steiner, Ocado’s chief executive, said that the retailer is under-valued. “We will see where it is at the end of the day and more important, we will see where it is trading in 24 months ... We are all entitled to our opinions and my opinion is that we should be valued at more than 163p,” he said earlier, when shares were trading at that level. “Is it the right price? I don’t think so.” Mr Steiner said that he would not even sell the retailer at 275p a share, and said that he is proud to have got the IPO away. Bargain already lost 10% of it's value. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted July 21, 2010 Share Posted July 21, 2010 I think Ocado got namechecked on the mumsnet 'secretly poor' thread, something along the lines of 'no more Ocado vans pulling up outside the house anymore, I'll have to shop at Asda'. So no compelling reason to use them, just image that impresses the impressionable. we've found them excellent TBH. always ring ahead and deliveries on time. I think the fact that they are run by bankers and profit was never the aim, but volume and market share, followed by a sale was. anyone buying such a business will have little leeway for a profit. Quote Link to comment Share on other sites More sharing options...
Timak Posted June 26, 2012 Share Posted June 26, 2012 In 10 years of trading they've never made a profit. Waitrose could wipe them out at a stroke of a pen. Fantasy economics to see them as a £500m company let alone £1b. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9356095/Ocado-blames-Jubilee-disruption-as-sales-stutter.html Shares down to 90p. If only I'd followed Timak's sound advice and shorted them. Oh. Quote Link to comment Share on other sites More sharing options...
Timak Posted February 7, 2014 Share Posted February 7, 2014 (edited) http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9356095/Ocado-blames-Jubilee-disruption-as-sales-stutter.html Shares down to 90p. If only I'd followed Timak's sound advice and shorted them. Oh. http://www.lse.co.uk/SharePrice.asp?shareprice=OCDO Shares now at £5.50 each! A deal to deliver Morrisons shopping has seen their shares go up 5x in value in less than a year. This values the company at over £3b. However they actually lost more money than ever, £12.5m this year alone. Compare them to Sainsburys. Sainsbury have a market cap of £6b, only twice what Ocado are valued at. Sainsbury are at 10x earning, Ocado 273x earnings Sainsbury pay 4.5% dividend, Ocado 0% I don't understand valuations. Edited February 7, 2014 by Timak Quote Link to comment Share on other sites More sharing options...
anonguest Posted February 7, 2014 Share Posted February 7, 2014 http://www.lse.co.uk/SharePrice.asp?shareprice=OCDO Shares now at £5.50 each! A deal to deliver Morrisons shopping has seen their shares go up 5x in value in less than a year. This values the company at over £3b. However they actually lost more money than ever, £12.5m this year alone. Compare them to Sainsburys. Sainsbury have a market cap of £6b, only twice what Ocado are valued at. Sainsbury are at 10x earning, Ocado 273x earnings Sainsbury pay 4.5% dividend, Ocado 0% I don't understand valuations. Chances are that you DO understand valuations - it's those paying the current shareprice who don't?! Quote Link to comment Share on other sites More sharing options...
macbeth79 Posted February 7, 2014 Share Posted February 7, 2014 http://www.lse.co.uk...shareprice=OCDO Shares now at £5.50 each! A deal to deliver Morrisons shopping has seen their shares go up 5x in value in less than a year. This values the company at over £3b. However they actually lost more money than ever, £12.5m this year alone. Compare them to Sainsburys. Sainsbury have a market cap of £6b, only twice what Ocado are valued at. Sainsbury are at 10x earning, Ocado 273x earnings Sainsbury pay 4.5% dividend, Ocado 0% I don't understand valuations. That is why you dont work in the city and earn £5m a year. (PS i dont understand it also.) Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted February 7, 2014 Share Posted February 7, 2014 I guess in the future everyone will be online food shopping? I think Ocado was setup by an ex banker. Not exactly sure what Ocado do. Order pick and logistics? Where is snacr? Quote Link to comment Share on other sites More sharing options...
honkydonkey Posted February 7, 2014 Share Posted February 7, 2014 Ocado are basing their model on Amazon and they trade at equally ridiculous valuations. I think city folk envisage the world as distribution centres and automation. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted February 7, 2014 Share Posted February 7, 2014 That is why you dont work in the city and earn £5m a year. (PS i dont understand it also.) Probably all planned to fail. Know a few firms that went onto the USM, then the Directors bought back for a song. Quote Link to comment Share on other sites More sharing options...
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