Would you buy shares from Ocado?

Spark

It seems that Ocado is offering shares for employees and consumers to buy.
I was offered to buy some shares with them, but as I have never bought any shares, I don't know if it would be a good move, as on other websites I read they still got to make a profit since they started.
Should I jump and go for it or are they too risky to even consider it?

PaulB75

I'm thinking about doing this as well, as a first time share buyer. This maybe a naive question, but it's related to initial post - do IPO's virtually always go up on first day of trading, or are they often over-priced initially and can drop like a stone?

property.advert

You have to understand that John Lewis, who own Waitrose, who are also the main investors in this idea, are getting their cash out or at least 50% of their shares are up for grabs. Then al the advisors, the Angel investors and the poor saps left holding the stock will be the disgruntled customers.

elisebutt65

Spark wrote: »

It seems that Ocado is offering shares for employees and consumers to buy.
I was offered to buy some shares with them, but as I have never bought any shares, I don't know if it would be a good move, as on other websites I read they still got to make a profit since they started.
Should I jump and go for it or are they too risky to even consider it?

As a 1st time buyer you should only buy them if you have the money to waste. Minimum buy is £1000 so if you have it to waste, then go ahead but if it's money that you need then definitely NO!!

I buy my share via fool sharedealing at £50/month as that's my 'fritter' money and it's spread over a portfolio of about 8 companies

Spark

sharelisebutt65, you reminded me of something else that made me ill at ease with this offer : the fact that John Lewis is opting out of it.
I don't mind gambling, but if you got to invest that kind of sum you would like to think that there are some chances for a return.
Some predictions seem to indicate that they will make a profit in 2-3 years.
As everyone will need to tighten their belt in the future, I doubt those predictions will be coming true if they have never made a profit during the boom era.

Frank_Cannon

Ocado themselves are adamantly declining to make a prediction as to when they will be profitable. Not a good sign.

RayWolfe

Frank_Cannon wrote: »

Ocado themselves are adamantly declining to make a prediction as to when they will be profitable. Not a good sign.

A similar stance that was taken by the majority of dot.com companies when they floated. Where are they now?
This is a real gamble as opposed to speculation and nowhere near an investment.

Ifts

Most of the original investors and directors of Ocado are planning on reducing their share holdings. Investment bank UBS is selling almost all its shares, worth up to £100m.
Looks like they will be using this opportunity to offload a majority of their shares, does not show much confidence in Ocado from those in the Know.

Link to article in the Guardian today: Ocado: should I buy the shares?

Also more competition from Amazon as they enter online grocery market: Amazon enters online grocery market

ray123

Considering Ocado has not made a profit in ten years, I would personally steer well clear.

Also, Ifts has pointed out that 'Most of the original investors and directors of Ocado are planning on reducing their share holdings.' If Ocado had huge potential as a company, surely the original investors and directors would be increasing their stake?

Essex123

PaulB75 wrote: »

do IPO's virtually always go up on first day of trading, or are they often over-priced initially and can drop like a stone?

I suggest this would be a good read for you and others looking to make a quick exit on Ocado:

http://www.incademy.com/courses/New-issues/After-Sid---a-short-history-of-the-new-issues-market/10/1066/10002

PasturesNew

I'd never buy shares in a company I've no knowledge/experience of, if a company I was familiar with was available.

Ocado aren't in my part of England, I'm not really 100% who/what they are/do.