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Prices & Quotes - UK Markets - Ocado Group (OCDO)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 2,273.00p
Change Today:
-40.00p
Market Cap:
17,005m
Sector:
Food & Drug Retailers

Sunday share tips: The Hut Group, Ocado

By Alexander Bueso

Date: Sunday 20 Sep 2020

LONDON (ShareCast) - (Sharecast News) - Matt Moulding's online retailer The Hut Group and its subsequent flotation have both proven a resounding success.
But can Moulding, who retains ownership over a quarter of the business even after the recent float valuing the company at 5.75bn, repeat the trick on public markets?

For the Sunday Times's Sam Chambers, investors should avoid the stock.

The firm's main attraction was its proprietary e-commerce platform, known as Ingenuity, which it licenses out to other consumer goods firms so that they can manage their own digital operations.

Ingenuity was easily the most profitable and fastest-growing bit of the company, but despite the "rosy" short-term outlook "it operates in a competitive market", Chambers cautioned.

Chambers also took issue with the company's incentive plan for its boss, with Moulding in line to receive 700m-worth of shares if The Hut Group's market valuation reached 7.25bn over the next two years.

"That troubles governance wonks - and it should trouble shareholders too, given the potential dilution," the tipster said.

He also pointed out how Moulding had retained the posts of chief executive officer and chairman, and was also the landlord of the company's properties- which are held in another company.



The Mail on Sunday's Midas column told investors to 'buy' shares of Ocado, despite the fact that the shares were "expensive" and that the company was still turning a loss, with the latter making it hard to value.

"But with a stay-at-home winter on the cards and the prospect of cold and wet queues outside shops unappealing, the appearance of Pete in the Percy Pig Van will be a welcome one to many households," Midas argued.

In particular, Midas touted the company's technology platform and its recent increase in capacity, which it said meant that Ocado was well-placed to deliver on the "unprecedented" increase in demand for online shopping.

As well, Ocado's tie-up with Marks&Spencer had been met with open arms (and wallets) by its customers.

"What company manages a 52 per cent increase in revenue during a global pandemic, and increases its basket size per customer to boot?," Midas said.

Midas also cited analysts at The Share Centre, who in turn highlighted the potential of the firm's services arm, which partners with grocers in the US and France, giving them access to its expertise in online delivery.



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Ocado Group Market Data

Currency UK Pounds
Price 2,273.00p
Change Today -40.00p
52 Week High 2,895.00p
52 Week Low 1,064.00p
Volume 710,548
Shares Issued 748.11m
Market Cap 17,005m

Performance Indicators

Compare performance with the sector and the market.

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What The Brokers Say

Strong Buy 5
Buy 0
Neutral 6
Sell 1
Strong Sell 6
Total 18
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Ocado Group Dividends

No dividends found

Trades for 26-Oct-2020

Time Volume / Share Price
14:56 35 @ 2,273.00p
14:56 21 @ 2,273.00p
14:56 688 @ 2,273.00p
14:56 2 @ 2,274.00p
14:56 10 @ 2,274.00p

Ocado Group Key Personnel

CEO Tim Steiner
COO Mark Richardson
CFO Duncan Tatton-Brown