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"Did you invest in ABF without researching competition?"
Depends on what you mean by "researching". Did I look at the general market to see who was out there, and their products, and whether market share was likely to increase, decrease, or stay stable? Of course.
Did I research whether BOO had good financials, investigate their management to figure out whether I trusted them to properly manage a company I part own, investigate whether I had ethical concerns with their current approach and direction, try to place a value on them and figure out whether I thought they were undervalued or overvalued? No, I didn't do any of that.
But of course, one of the reasons I liked ABF was that it isn't just Primark. It's Primark that makes me think there's solid growth opportunity, especially if they succeed in the US at all comparably to how they succeeded in Britain. But there's also the rest of the company, which continued to be profitable through lockdowns. With ABF you have diversification. I liked that.
So, I never really considered BOO as an investment. Not because I didn't think it might be profitable and perhaps even more profitable. I think they've done an excellent job of gaining market share, though I'm not persuaded that will continue to grow. I don't know that. But I don't know anything about the company beyond that, really. Never bothered to find out.
Hope that answers your question.
Why debate either place? If someone is posting lots of off-topic stuff over there, posting about Primark on Boo board, report him. Off-topic posting is against the site rules.
Or filter him if you don't want to see it.
https://www.bbc.co.uk/news/business-58007313
Why debate on Boo board why not here. Thanks for shein link, have one for you around bricks and mortar retail, not looking at busy as you keep saying on boo board.
K and AATM
"Can I now continue my conversation on Boohoo board?"
Please do :-)
Ah, so this really isn't about ABF at all. Ok.
Don't really understand why people go posting on a share that they aren't invested and aren't thinking about investing, but whatever. Good luck to all investors in both shares. I don't see any reason to doubt my investment in ABF. Haven't researched Boo sufficiently to comment, but certainly they've had some success. It's not a company in which I wish to invest but that's not a comment about whether the case for investment is good or not.
I'm not sure they are really in competition with each other that much, they are mostly (IMO) targeting different market segments. Nor do I necessarily think it's an either/or investment proposition, I'm sure some people are happily invested in both companies.
"The most important thing to watch is whether Primark grew shops, sales, profits, geographies in those 5 years and the resounding answer to that is yes."
All that good work yet the market still not convinced, what will happen when landlords start to put up rent, low rent not sustainable.
Deramping as you have not made one positive comment on Boo, hold no shares and number of posts are excessive, especially when share price drops surprisingly. Why you want to share your online retail "concerns" and promote bricks and mortar on boo chat forum i do not know, how you don't think it is deramping is showing how silly you really are.
Of course share price goes up and down and tbh my main holdings are held in my company pension (save on paying tax) so like you will top up if it goes much lower.
For ABF I don't need to deramp, share price trend will no doubt continue on downward trajectory,throwing more money down the drain in my opinion. I know you think online retail is failing though and high Street is booming, so good luck with that.
The biggest point coming from Kallus posts for ABF is that Primark has lots of stores and rents are cheap.
If offline stores are the winners in the 20's - surely all these online plays will rapidly expand onto highstreets?
I am also worried for ABF - as the rise of ESG concerns are trickling down to consumer levels. We know that food delivery co's e.g hellofresh and gousto are much more environmentally friendly, healthy and convenient. Is this not a pressure on ABF's products?
Just need kallu to answer why he feels the need to constantly"advise" all those on Boo chat forum that Primark is the be all end all (just look at his constant deramping posts) when he can not answer the simple question of why ABF is down over a third in past 5 years, lower every year, each year. Why would Boo shareholders move across when share price has more than doubled in the same period. Simple question, no answer as yet. I ask the question on Boo but he just ends up (avoiding the question) promoting ABF and deramping Boo so thought I'd get more joy asking in a forum he actually holds shares with! So kallu what has changed with ABF and boo to suggest a change is needed?
My father taught me about investing before I was a teenager. He told me never to invest based on what I hoped a company would be, or thought it should be, because I wasn't going to change it. He said you invest on what a company currently is. And you invest on a company's direction, but only if what they say matches what they do -- if those don't match, you run the other way.
I think you just need to accept that ABF / Primark is what it is. If you don't like it or think it is a bad business model in today's world, you need to sell your shares and invest somewhere else. You aren't going to change the company, and you aren't going to convince those of us who see it differently by repeating the same thing.
That's the beauty of markets in the modern world. We can decide what we think the future holds and invest accordingly, and someone who views it differently can invest according to how they see it.
Good luck to you.
John Van Tam on BBC news mentioned pandemics will not be "the 100 year event" as seen over recent times with covid 19, swine and bird flu. Really need to push for online as closed Primark shops are not good for bottom line.
"Why has ii (institutional investors) not piled in"
I suggest you research investment strategies, especially contrarian or value investing. If you don't want to invest in that way, if you are more a growth or momentum investor, then I'd suggest that this is not the time for you to be investing in ABF.
I personally believe the most money is to be made on companies that the IIs are not piling in and are out of favour with the market, but where the company is strong and there is reason to believe in a bright future. But many people don't have the stomach for that because it can take a while, even if the evaluation of the company is right, for the market to catch up. And of course, you can get the evaluation of the company wrong. To succeed, you have to make sound evaluations of the companies and have the patience to wait for it to come good, and be willing to buy and hold even when the institutions aren't piling in.
If you wait until the institutions have piled in, you have much less upside, because when they pile in the SP rises.
Your questions here suggest you don't understand this kind of investing, which suggests this may not be the best investment for you. Good luck whatever you decide.
"This is what I love about Primark's strategy, it does not matter what macro or micro economic scenerioā€¯
With more pandemics in past decade online presence is essential as store closures really hit the bottom line
Why has ii (institutional investors) not piled in
Still not answered why share price has dropped every year for past 5 years. What has changed to make this a buy now, how do I know I'm not catching a falling knife. Why has it not piled in at current price.
Primark relies on cheap clothing, could increase in freight costs be of any concern to their margins.
Why has the share price not recovered though could it be other areas of the business such as sugar tax? Seems to be more pandemics in past decade so hope click and collect can capture some Primark revenue when stores close
Concerned if lockdown 3 is on the horizon. Really should have online presence.