Ocado sales increase but jury still out

first_img Ocado sales increase but jury still out ONLINE grocer Ocado yesterday reported a 27 per cent sales rise in the four weeks to Christmas – but some analysts still questioned the company’s progress following a troubled float. The firm posted gross sales of £50.9m for the period, helped by more customers shopping online instead of going to supermarkets in freezing weather conditions.Ocado was forced to slash the price for its initial public offering (IPO) in July to 180p – down from initial hopes of 200p and 275p – after retail analysts and fund managers claimed the business had been overvalued.The share price hit a low of 120p in October before bouncing back to 184p. It closed at 181p yesterday. Chief executive Tim Steiner said yesterday: “We are delighted to see the continued growth in demand for Ocado. A record number of customers shopped with us in this period.” In a statement the company added “Ocado has done exactly what it said it would do at the time of the flotation” and added that the group was in line with market expectations for full-year earnings. Ocado, which sells Waitrose groceries through its website, is due to report preliminary full year results on 1 February.ANALYST VIEWS: IS OCADO ON TRACK TO DELIVER FOR INVESTORS? CLIVE BLACK | SHORE CAPITALWe had felt that Ocado may have had a stronger order flow through the inclement weather, albeit with some disruption costs. The overall Ocado performance is broadly in-line with our expectations but the investment case does not change in our minds. Sell.PHILIP DORGAN | ALTIUM SECURITIESThe trouble is that Ocado has no earnings, or cash generation and its asset value post equity raise is just 30p per share. Also, it is definitely not Facebook. We believe that this is a fair starting point for valuation. We are therefore maintaining our Sell recommendation.NICK BUBB | ARDENThe sales figures today will be picked over by the bears, but they look pretty good to us, albeit the final results are not far away now (on 1 February). That is probably a more important share price catalyst. KCS-content whatsapp whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBeAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteDefinitionDesi Arnaz Kept This Hidden Throughout The Filming of ‘I Love Lucy’DefinitionTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farmthedelite.comNetflix Cancellations And Renewals: The Full List For 2021thedelite.com Monday 10 January 2011 8:44 pm Show Comments ▼ Share Tags: NULLlast_img read more