OCDO LN

Ocado Group PLC

Consumer


Presented:11/03/2017
Price:£2.84
Cap:$2.68B
Current Price:£3.70
Cap:$4.72B

Presented

Date11/03/2017
Price£2.84
Market Cap$2.68B
Ent Value$3.28B
P/E Ratio152.69x
Book Value£0.46
Div Yield0%
Shares O/S614.70M
Ave Daily Vol1,790,472
Short IntN/A

Current

Price£3.70
Market Cap$4.72B
Ocado Group Plc engages in the operation of online grocery supermarket. It offers the Ocado Smart Platform that provides grocery electronic commerce and fulfillment solution. The company was founded by Jonathan Fairman, Jason Gissing, and Timothy Steiner in April 2000 and is headquartered in Hatfield, the United Kingdom.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), Ocado Group PLC (OCDO LN), Tesco PLC (TSCO LN), WM Morrison Supermarkets PLC (MRW LN)

Highlights

The presenter is long shares of Ocado (OCDO LN, “OCDO”), a UK-based online grocery company, on the thesis of significant upside from technology licensing possibilities to large traditional grocery players. He believes current sentiment on OCDO misunderstands, and therefore underappreciates, the underlying model. According to the presenter’s model, OCDO’s current valuation of 2 billion GBP is justified by its existing distribution centers, but there is significant upside from this licensing opportunity, or some sort of strategic activity, as a “free call option.”

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Idea Discussion

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