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Both Next and Asos will buy back in soon, especially for Christmas, altho has already been mentioned it really is small potatoes. As for margins being affected by fty local sourcing etc again as i mentioned y.day thay can equally source overseas, lead times are down to two weeks Ex as inventory is being kept in stock to feed FF and costs are actually cheaper so they can even afford to fly goods in.
given the esg problem, its likely few funds will be materially invested in this one, but can be seen in a good way in that there is the potential to gain fund support as the company works through its esg issues. the company has claimed this week that the 10m set aside should be enough to set the leicester production problems straight, but even if costs were to rise, i don't think an extra 50 pence on the price of clothing is going to make a material difference for their customers, so margins are unlikely to be affected. as for turnover ex boohoo.com, i think they stated its less than 2%, so ventures with asos and next aren't material to the core business.
Big shout out to Rahul258, a previous de-ramper- gone but never forgotten. Famously compared BOO to Ted Baker.
Thanks Steve, it’s important we have honest relevant debate backed up with facts. Incessant ramping doesn’t do anyone any favors.
"Also looking at the impact of retail partners pulling BH off the shelves."
We already know what the revenue was from third parties and it was tiny, think it was around 1% but am happy to be corrected, as can't be bothered to find it again.
Agree, the market is waiting to see if the additional measures BH will have to implement will adversely affect margins and long term outlook. Also looking at the impact of retail partners pulling BH off the shelves. I’m over £30k invested in BH, so if I don’t get a big result tomorrow I know my time will come sooner rather than later.
Another way to look at this.
All the negative, all the bad stuff, IT IS ALL OUT IN THE OPEN!
Were at 380p !
From here whilst online is booming this SP can only go up!
What will make BOO go up:
- Increased sales and profits
- Boohoo showing they are implementing measure to prevent slavery
- Factory
- Aquisitions
- Social media growth
- New ventures into other countries, MIddle East for example
- Collaborations with famous people
- Winning market share in other countries
- I probably missed loads.
The skeletons are all out, now BOOHOO can only do good to boost SP and remember at 600p management gets a 150M bonus.
Perhaps small investors are a bit unsure of BH but the institutions really should be biting hard on this share, since L/D sales in this sector have only gone one way and that's up, we are seeing and will continue to see consolidation of retailers not manging to make the leap from retail to pure e-tail, the dead wood is being cleared out. I'm no lover of BH as a Brand but they are shrewd and have one of the best CEO's in the business. I'm sure that the lack of wholesale may have tempered there sales somewhat but in reality these wholesale buys are at much lower margins and if they cannot buy it from a 3rd party then they will just default to BH website which actually means that the margins should offset and missed sales. You cannot watch dog every single order that is put with a factory it's impossible, you'd have to have a army of QA people camped out in every factory it's just not practical, what the Leics scandal has shown is the bad factories that cannot be trusted this will now have been weeded out, in reality the young Girl from Newcastle who wants an out fit for the weekend only really cares about cost, speed, ease of purchase and return, BH ticks all these boxes and has a marketing campaign that tells her that she is bang on trend, job done. So with Christmas looming and CV still roaming BH is set fair to cash in even more, Biggest issue tomorrow and coming days will be whether to carry on going long or cash in!!!!!!
A lot of shares dropped like a stone early March when Covid and lockdowns hit. Boohoo was amongst them. Some shares have struggled to get back to pre Covid levels whereas others have comfortably got back there and some have even been as bold as to surpass their pre March levels.
Let’s assume for a minute that the rush to buy in and benefit from online sales was a tad overdone and that the highs of 430+ were a bit overpriced (we will never know if the share price would have traced back slightly because courtesy of them story’ the sp plummeted).
380/385 would be a fair rise beyond the pre Covid price and it wouldn’t be unreasonable to assume that to some degree the expected results are priced in even at this price.
If results are considerably better than expected or an exciting announcement accompanies the results then a 5-10% rise could be a reasonable expectation. 410-420 share price on back of results.
Personally even if the 433 was a true indication of where this share should be based on great online sales and even if that had a degree of results priced in and perhaps would have took us to 470-480 on results day I don’t see that happening now.
The results of the inquiry were ok and the negative spin put on it by the press seemed to have little effect. However the company have a number of things they must do to satisfy he recommendations made by levitt and institutional investors will want to see these recommendations acted upon. There is sufficient risk to hold the share price back a little and rather than see a big jump up to and beyond our high of 433 on or around results day I suspect we will see a series of smaller jumps over the next 3-6-12 months as boohoo implement non exec directors, trim their supplier network, release plans of factory etc and in addition launch new collaborations or grow their Middle East/US sales.
I’m not saying we won’t get up to 470-480 and beyond but I just don’t think it will happen this week. I think we should have high expectations of this share and I see no reason why the magic 600 figure won’t be reached and before the deadline the board have been given but I reckon 410-420 on the strength of results would be a result. Beyond that i can see us surpassing 433 before year end and then it’s all about whether restrictions on going out etc impact sales and will The next results update push us up to or beyond 500.
That’s my tempered expectations outlook.
The SP is being held back now by the market not knowing whether sales were affected by the ESG stuff.
This is not fairy make believe world, this is capitalism, people invest to make money and do so when something is succeeding and growing.
Everything points to no drop in sales, actually, completely the opposite.
So 399.99p all day long then?
Ha it will fly tomorrow but not pass £4 i too am confused thats only asmall percentage off so I'm interested to hear what % you class as flying then 1%
So its gonna fly tomorrow but won't be above 400p? LOL!
It already broke past 400p once on the investigation results and after profit taking it has returned to these levels and the investigation was pretty harsh but it sets a new pland and a new stronger future for Boohoo.
If tomorrows results are ahead of forecast we shall be beyond 400p, before the scandal hit we were at 433p, online is booming more than expected which is a market BOOHOO excel in.
Strong results alone will push us north of 400p and if Boohoo have any other real positive news lined up for us then 450-500p is a real possibility.
DYOR
GLA
Do you mean north as in £5? I dont think its unrealistic to go over £4.
I'm going for peak of £4.15.
If you don't think it isn't going to go past 400 tomorrow on good results, then you should probably just quit now and stick it all in an index fund.
You think it will fly tomorrow but not go past 400p? We are only 6% away now.
I’ve been in boohoo too long and have seen similar situations. No doubt this will fly tomorrow but any talk north of £4 is nuts.