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BooHoo are not liked in fashion circles, they are cheap knock off clothing that live in the hyper-fast fashion mode of clothing.
sure they will buy up brands that have gone belly up, this is to diversify their market demographic and consolidate the market position.
by the real big brands will be looking to release new sister labels that can offer better quality at similar prices.
this will be the trend over the next few years, as the top fashion brands dont want to dilute their appeal, but equally want to take up the market that boohoo operate in.
big fish are always tempting, and boohoo has now set bait of massive results for their own demise.
PS. Philip Green has a bloody nose, and one last fight in him. get ready for a round house kick to the market as he body slams boohoo with the winter / spring collecitons
clairesmith - those of us who make the big money on shares do our homework thoroughly and never speculate on shares.
I bought 360,000 shares in Boohoo in 2015 and have held them ever since through every up and down. I'm not interested in trading, been there, got the t shirt and worked out that the way to make the big money on shares was to find great growth shares like Boohoo, buy them and hold them for at least 10 years. Warren Buffett, the share billionaire, said never buy a share you wouldn't hold for 10 years. Boohoo is the only great growth share on the UK share market.
clairesmith - read a number of times and learn about Boohoo:-
Estimate of the Intrinsic value price of a Boohoo Share.
1) 5 year EPS growth rate estimate from yahoo finance (analysis page) is 29.9% per year. From the balance sheet we can see that equity has grown from 85.5million in 2015 to 569 million in 2020. That is 46% per year compounded growth.
2) The 5yr historic PE from MSN Money price ratios is High of 70.86 and low of 37.69 is 52.7 average.
3) Current EPS (TTM) is 5.3p x growth rate 1.3 x 10 yrs = 69. Therefore the estimated EPS is 69p in 10yrs.
4) The earnings per share of 0.69 x the future PE of 52.7 gives a share value in 10 yrs of £35.88.
5) If you take 15% profits year on year from this sum you achieve a current fair price of £7.71
6) discount this by 50% for a margin of safety purchase price of £3.85. Basically you can buy this all the way up to £3.85 and still get a fantastic bargain.
I have run this calculation on a multitude of companies, and none meet the criteria. If you can find any companies with a solid history of exceptional trading like Boohoo that have lost substantial value through no real fault then please let me know of them.
Great points big PP
clairesmith - Boohoo will be buying those brands from administration for next to nothing. Boohoo bought Oasis and Warehouse together for £5.2m. You need to do some proper research on Boohoo then you'll understand why it is a great growth share.
Buy up to £3.85 for a fantastic bargain, Boohoo share price will be £8 to £10 in two years according to Paul Scott and calculations show Boohoo share price will be at least £36 in 10 years.
From Paul Scott, Small Cap Value Report, Stockopedia - A few years ago they told me Boohoo could be a £5bn revenues business in the long term. Now they're talking £10bn, £20bn as possibilities. Hence why I'm inclined to keep buying, and to sit tight on them, almost irrespective of valuation. I've never looked at any share like that before, but this one justifies it, I reckon.
Paul Scott was a Finance Director for UK clothing retailers before leaving to become a private investor and write for the likes of the Small Cap Value Report on Stockopedia.