first_img whatsapp Show Comments ▼ KCS-content Tuesday 12 October 2010 8:45 pm More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comMark Eaton, former NBA All-Star, dead at 64nypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comKamala Harris keeps list of reporters who don’t ‘understand’ her: reportnypost.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.com‘The Love Boat’ captain Gavin MacLeod dies at 90nypost.comSidney Crosby, Alex Ovechkin are graying and frayingnypost.comKiller drone ‘hunted down a human target’ without being told tonypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.com by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryNoteabley25 Funny Notes Written By StrangersNoteableyTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was The Dream Girl In The 90s, This Is Her NowMoneyPailSerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comHistorical GeniusHe Was The Smartest Man Who Ever Lived – But He Led A Miserable LifeHistorical Geniuscenter_img Ocado OCADO will hope the start of work on its new warehouse (or Customer Fulfilment Centre to use its irritating official title) will begin a new chapter after a torrid few months for its share price.Since its climbdown on the massively optimistic flotation price range of 200-275p (it eventually achieved just 180p), its stock has steadily trickled to its current 128.4p – not a far cry from the 120p mark some analysts said it was worth pre-float.The new warehouse will eventually be able to process 180,000 orders a week, allowing Ocado to aggressively expand in the Midlands and beyond: it says the new warehouse will increase its reach in the UK from 66 to 85 per cent of households. However, its goal of finally turning a profit after more than 10 years could come under pressure from the new plant running at two thirds of capacity for an unspecified time after opening.The thinking behind opening the second warehouse as far north as Warwickshire, rather than consolidating its position in the south, has been questioned, but the extra reach it provides could make this a gamble worth taking.More problematic could be the firm’s profile as a provider of luxury food – an area which its customers may feel the need to cut back on after government austerity measures really start to bite later this year.Ocado was buoyed by a 30 per cent jump in sales in the last quarter, but its average order size falling more than £1 to £113.59 should be seen as a warning.The market was unmoved by the announcement yesterday, with Ocado’s stock closing marginally lower. We agree: at 128p Ocado looks risky. A wait and see approach is advised. whatsapp Tags: NULL Sharelast_img

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