Just to crow a bit. On the 25th (actually written a couple of days before) I tipped Ocado. On the following basis:
I don’t think the market is properly appreciating this move away from low margin and into potentially high margin business. I therefore think that there’s a good probability of a rerating of the stock over time. As with the gold rush, selling the tools is a better business than digging for it. And there’s an awful lot of supermarket chains out there in the different retail markets.
The price was 1,152p. Today we see:
Japan’s biggest supermarket chain has called on Ocado to build its new automated warehouses, even though the country leads the world in robot technology.
The deal, which marks the British technology and online retail group’s first move into Asia, lifted its shares by as much as 22 per cent yesterday before they closed 117p, or 9.7 per cent, higher at £13.25, valuing it at £9.5 billion.
Pure blind luck as a tip of course but fun all the same.