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But again I’ll make the point. Rag claims to know everything
(Lists the 7/8 things he’s been materially incorrect about) and we all still need to have his opinion? Really?
Let’s get his errors out in the open and also make him realise he doesn’t know what he’s bought (“absolute steal”) and if you want to take a high moral ground @P then you can sleep well knowing that you helped someone learn
Atm all you’re doing is encouraging a guy who doesn’t understand the business or what he’s bought. This is like getting the plumber to fix the lights with a JCB
But yeah let’s gather round for the opinion (test and repeat same as topshop…data? Who’s that?…platform = website etc etc etc)
Ladies and gentlemen welcome to the dumbest post ever on LSE
“ As for the people on here I’m not sure what their professions are but since the late 80’s the number of individuals who invest directly in shares has grown considerably and there are sure to be plumbers and blacksmiths or any number of other professions out there who manage their own pensions and isa’s and I don’t see why that should make them any less qualified”
Please find me a private equity fund where the team is materially made up of plumbers
This post reads as though valuing a business is some sort of alchemy as though all it needs is some sort of hunch or ability to see something
In you scenario the point (which you’ve missed 4/5 times) is that he doesn’t know if he’s bought value or not
He bought shares and the stock went up doesn’t make him right but then again he’s just as qualified as everyone else
I bet he’s on the payroll at Robey Warsaw now?
It’s a share price mate. If you can’t articulate value then you’re just betting. Your mate although he was right would have saved years of his life by betting red or black at the casino
It only refers to depositions. There is a 8 hrs time difference to California, and so they struggle to agree a start time.
Court case
Got a tweet judge in chambers granted acceptance of part and denied point. Ordered plaintiffs and defendants to reach agreement.. stale mate or no score draw
Lets not forget fleagate
Dan - sorry but I was off to drop my youngest to uni today so couldn’t reply any sooner.
I fear once again you have missed the point I was making which was simply that you might have something useful to share but if your only motivation in posting is to drag up old arguments with someone who doesn’t even see your posts then anything useful you do have to share gets lost in the mele.
I’m not defending rags posts or his position I am simply suggesting that you refrain from referencing old arguments with everything and for the love of god please don’t start encouraging kallu to post any more than he already does.
As for the people on here I’m not sure what their professions are but since the late 80’s the number of individuals who invest directly in shares has grown considerably and there are sure to be plumbers and blacksmiths or any number of other professions out there who manage their own pensions and isa’s and I don’t see why that should make them any less qualified to have an opinion about a share they own than you me or anyone else.
I know someone who drives a lot of miles for their job who purchased shares in greggs some time back simply because the noticed the number of motorway service shops that they were opening up and believed that would result in significant growth. They did some basic research prior to purchasing but I can assure you they would be more likely to have known the price of a steak bake on the motorway services and how busy each outlet the observed was at different times of the day than they would to be able to quote the expected revenue for the next three years and what the retained profit would be. Does that make them a bad investor? Certainly a different way of looking at an investment but not necessarily the wrong way given it their money they were investing. And let’s be honest no amount of research or valuation calculations could have led an investor to predict that the Sunday times would run an expose on boohoo and the resulting problems with the share price.
Jjoo i have a screen of green , quite right just ignore, i just don't feed the gas lighting troll and for which he appears to be upset that's all you need to know, matter closed.
Coal Drops is an experience, i agree it has little relevance outside the luxury market and of course as you say who would pay £6 for parking to go shopping to buy a pair of pants or socks when we all know you can browse thousands of colours on line. I guess my point is that to make the major H Streets attractive once more you need a version of CDY in order to make them relevant once more, we have gone from niche independents making town centres desirable to multiples then piling into them and saturating these centres, forcing the indie out, to then in many cases the Multiples moving to out of the town centres and leaving them to the charity shops and discounters, bereft of any experience and the Town Centre being a shadow of its former self. We may see our kids kids think it's a novelty to actually go to a store and try stuff on!! it's a long way off (if it ever comes) but the likes of Coal Drop should be an inspiration of what can be achieved albeit on a much smaller scale, anything is better than the current major H St and i include Oxford St in this.
ha basically rag thinks boohoo is a "ragtrade" business ie it's just about making the stuff look good and it flys off the shelf.
It also doesn't matter how you do it ie online, stores, wholesale etc just get it sold
He also dispute that a "platform" and "data" are real and they are just buzz words. Topshop had the same insight and speed via stores
Rag also think Boohoo has had huge success with the brands it has bought just by making micro chnages ie just taking better pics on the website. Not much else
Oh and he think test and repeat (which boohoo does) is foolish and shouldn't be done
So long and short he hates the company and everything you've said above is wrong
Oh, but he's "invested" and thinks the stocks going higher!
It's the opposite of Kallu
I haven't followed the beef on here so I don't know what's going on. Just to float that out there. It's only the absolute drivel from Kallu making my brain melt that got me commenting in the first place haha
Biggest swerve ever ladies and gentleman!
Come on P get rag to play fair! Happy calling me out well get him to back up the ramping. It's the same as Kallu just the opposite direction
@J finally someone who "gets it"
How viable is that in terms of costs outside of the luxury market? Does anyone buying socks actually want an experience, or just cost effective and efficient?
Agree with that rag. Everywhere looks the same. If they want to even slow the online trend they are going to have to improve the experience.
What I mean by they pay the influencers is that along with the social media data they are so close to the trend influences, and with molly mae even weaving the target demographic directly into the fabric of boohoo. That can only be a smart thing to do and mirrors what athletes have been doing with Nike etc for decades.
Jjoo
Couldn't agree more, places like Hudson Yard and Coal Drops Yard are great examples, retail needs to be about the narrative and it needs to inspire because the experience really matters, at the mo it sadly lacking, just about every major H St in the UK looks tired and generic.
Haha. Well speed is the difference. And it's not marginal either. Its horse and cart vs a jet plane.
Think about the trend insights from millions of social media interactions, not to mention the fact boohoo pay the influences that set these trends.
You tie all this together and the idea of the £1 bath bomb being a competitive advantage seems..... well hilarious. Which it is.
Rag would say you're wrong! He's 30 years experience and knows the guys from Pennywise
Topshop trialing a dress in 300 stores is just the same as boohoo's version of test and repeat
What about spotting trends? This is still only possible from being on the ground in a location? Ie there's no way a business in China could know trends in LA?
But let's give rag time to tell us the answers now. Or is he waiting for PMoran to pop in to defend him and tell me off?
Even just simply speed to market is an advantage, and at boohoo it's completely driven by big data.
The point I'm trying to make is that I'm not sure it's even possible to fully comprehend how big data will change things. Its probably over hyped in areas, but it's an obvious advantage in others.
No, companies like Boohoo can shape their offering far more efficiently and have far more insights into their customers than anything we've seen before, and they will only get better at it.
Whoever manages their data best wins. Imagine an Amazon warehouse on the edge of 10 different cities across the world, each one containing perfectly selected inventory, seasonally adjusted for those specific geographic locations and customers, all of which can be delivered within 1 day, and often same day. It's hard to enter in against that once someone has done it. There is a first mover advantage which increases with scale.
Would you rather log in to your account and see things curated that fit your style, perfect for the season, delivered nextday at the price point and quality you tend to buy at, and over time that perfectly fits. Alternatively you can elbow your way through the city centre after you've paid £6 parking with no guarantees you can even find what your looking for and where 90% of everything on the shelves is not relevant to your needs. Don't look at where boohoo is now, rather imagine what this level of data driven insight will allow 10 years from now. I'm not saying boohoo will 100% win the game, but I'm pretty sure I know who won't. If your best defence against all this is an email address list and £1 bath bombs, you may struggle a bit.
We already live in a world where it's quicker to have a mcdonalds delivered than go to the restaurant. It's only just started. Luxury shopping will remain on the high street sure, You don't order a 10k Rolex online, and same with a good quality restaurant. They are selling experiences, they need the bricks and mortar. Consolidation is coming. City centre retail is only going to decline, it remains to be seen how more local stores perform.
It'll be nice, city centres will likely become hubs of more experiences and culture and high end shopping.
Bear in mind he wanted Boohoo to have a "more normal p/e" (I get accused of taking stuff out of context and this quote is from Oct-20 and I don't think he ever knew what a p/e ratio is
Also you mention data. In what sense is this the same type of data insight that Topshop enjoyed when they were on the high street?
The point isn't if it's hard or not the point is if Rag can tell us!
Hardly complicated is it. Net of cash the current market value of 3 billion is around 22 times after tax 2022 earnings. This is a small premium relative to the market given Boohoo's growth. The fact it's undervalued given its growth is almost trivial given how obvious it is, the question is will Boohoo fix the issues that have got us to this valuation.
The argument of competition from Shein doesn't hold much water to me. The fact Shein is so successful should bolster investors understanding of the secular trend happening right in front of us, and there's room for more than Shein. Contrary to a certain comedian on this board, the cost to buy the data moat Boohoo enjoy is a big barrier to entry and something Primark have reiterated time and time again. The high street will always have luxury shopping, but the number of general retail stores is only going to continue to shrink. The 30% increase in online shopping since pre-pandemic will never be reversed, and will only increase over time. There's 1st mover advantages here and just like many other sectors there is going to be a lot of consolidation happening.
Shein and Boohoo are both competing with each other of course, but the real story is that they taking market share from incumbents, and given Boohoo's size relative to the fashion market, it has a long runway ahead of it.
Won't be long before investors see 200 million after tax earnings on the not so distant horizon and realise this valuation is wrong by some margin, but investors are right to be nervous about Boohoo scandals and Esg concerns. At some point Shein will have to be held to the same standard. I think it's positive all this is coming out, it'll force Boohoo to change and they will be stronger on the other side. If you are speculating over short periods, you deserve the poor results your going to get, but I've no worries that this valuation is a great entry point for the long term if you believe the current issues will be resolved.
On another note I've never seen someone with such level of conformation bias as Kallu. It's comedy. I don't know if anyone missed it but when asked why Primark had performed so poorly over the last 5 Years and his reply was "I think people have felt guilty about buying more clothes" haha.
As for him outperforming fund managers, it's both very unlikely given how foolish his posts are (anyone can get lucky though), but regardless he doesn't run the same level of money. Running millions is much different from running a few hundreds thousand.
Oh and as for "Primark dont put out excuses", well you'll see in the below link that this is also just a bit of cognitive dissonance from Kallu. It's not the only time they've said it either.
https://www.standard.co.uk/business/primark-blames-unseasonable-weather-for-decline-in-sales-a3982196.html
That's why their targets are broad guides. They aren't exact as that's impossible given you aren't buying the business on a set day unlike in a private transaction where you acquire the whole share capital (ie you can clearly calculate and agree a price and it will execute)
But rag should be find to do the broad brush analysis here as he's declared both an "absolute steal" so he's clearly calculated huge upside even if using a wide estimate
Curious to see where he lands on this one
Valuing shares to any great accuracy is beyond many well paid analyst's let alone blacksmiths , too many metrics that are corrupted by shorters , options , naked options etc. Just look at the Archeos debacle .