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PSQUARED Asset Management placed bets worth more than £20million that the AIM-listed firm's shares would fall. It was the first time a short position has been disclosed in Boohoo since Covid-19 struck the UK.
Short sellers use contracts to sell stock and buy it back when the price falls, making a profit on the difference in price. Swiss-based PSQUARED emerged with a 0.55 per cent short position on Monday.
Boohoo denies any wrongdoing. But the value of the firm has since dropped by £1.3billion, meaning PSQUARED will already be sitting on a profit. On Friday, Standard Life Aberdeen sold its Boohoo shares, citing an 'inadequate' response to the allegations.
PSQUARED took a short position in NMC Health last year as it battled accusations of fraud. The company later collapsed.
No one on a message board other otherwise knows if the SP will be up or down in a day or a week — they're guessing no matter how loud they say it. Not something to pay attention to IMO.
Legit question, what should I listen to? Balance sheets and profitability or message boards saying this will tank? How much does reputation really matter?
Sorry Aghnir, can't find it. The headline is: "A leading figure in a Chinese group allegedly created to groom foreign elites has been pictured with five British prime ministers. Photographs uncovered by the Daily Mail show how Zhirong Hu (pictured centre with Boris Johnson) has moved among the British Establishment. He has met Boris Johnson, Theresa May (pictured bottom right) , David Cameron (pictured top right), Gordon Brown (pictured bottom left) and Tony Blair (pictured top left). " Yeah, people posing with each other is the new crime, according to DM.
They look like they were having a terrible night, crack a smile lads :-)
“A spokesman for the company said: ‘Boohoo terminated the supplier relationships with both Revolution Clothing Co Limited and Morefray Limited on July 7, 2020, due to non-compliance with the Group’s Code of Conduct ascertained during compliance visits by the Group’s third party audit team.
‘Some Directors and former Directors of the two companies are indeed well-known to members of the Kamani family, but this has had no bearing on ensuring that suppliers meet boohoo’s Code of Conduct.’ ”
Well, that’s that sorted. Phew... This deramping is getting desperate....
Daily mail isn't a source that will affect serious investors. Yes, if there is legitimate proof Boo have been involved in malpractice then there will be a drop in the price. Realistically, the market that boo covers is well sought after and the company are very likely to announce further profits in the near future. Sub 2.5 is a short target, not a boo possibility.
Unfortunately the Daily Mail just realised another story.. inaccurate but damage being done..
https://www.dailymail.co.uk/news/article-8515609/Pictured-Boohoo-founder-Mahmud-Kamani-snapped-partying-sweatshop-boss.html
There reputation has only been damaged by a small amount, after looking into boohoo’s social media pages and also a couple members of the Kamani family they had lots of support from influencers and consumers. There were a few comments that were against the brand however with the support of major influencers and celebrity’s I believe the consumers will maintain their interest in this brand and keep on buying.
Post your opinion, it's all good. There definitely is a lot of people who will look for confirmation bias for their investment that's natural.
I just think personally the chances that this blows over pretty quickly is much higher than it persisting and doing consistent damage to the company. The worst is over imo.
Fast forward a month and i would be shocked if the price is lower than it is now.
Quite funny, only allowed to comment here if it’s positive! At least 20 posts on Friday saying £3:50/£4. Total nonsense! A lot of posters here invest with the heart and not the head. This company is well and truly in the crosshairs! Reputation is in bits and the recover will be long!
My short position is looking extremely good, it was the correct trade! It will be looking even better at £2.50 tomorrow!
Thanks for the tip Axe! If they do drop then I’ll be buying shed loads as I missed the boat last time around. The sp will recover whatever. The BoD will do what needs to be done to turn the company around.
Possibly, there is potential bad news can still catch like wild fire and persist, more likely though it will be old news in the next fortnight and the price will test the same levels pre all this drama.
Axe capital goes into the scum filter box. Good luck all genuine holders
Looks like they are all in it together! This is going to sink tomorrow! Hope you all managed to cash out on Friday!
The billionaire co-founder of Boohoo was pictured celebrating on a night out with the director of the fast fashion supplier accused of failing to pay its staff minimum wage.
Mahmud Kamani and his wife Aisha attended the party with Asheem Sobti in 2017, one of a number of times the families have socialised together.
Mr Sobti, 51, is the director of a company which Boohoo severed relations with last week amid claims staff were being paid too little and bosses were failing to protect them from coronavirus
It did not mention the relationship between the Kamanis and the Sobti family but family social media profiles show numerous pictures of members of the Kamani and Sobti families together.
In 2014, a photo shows Asheem Sobti receiving an award on behalf of Mr Kamani, 55, at the 2014 Asian Achievers Awards.
And they claim they didn’t know anything about it!
Sinking ship!