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I believe Boo are getting all their priorities in line and appear to be advancing all objectives promised that has encouraged me as an investor. Factory update, release of UK supplier list this month, new markets being established, new brands on board (some interesting but I think smart as it has opened a new demographic of customer base), addressing ESG failings, increasing turnover, online strategy, marketing ect. I bought more today - maybe jumped too quick but still see a profit coming in a month or so. Awaiting more media spin and ready to take advantage but will not be spooked by stories that have little credibility. I agree with Kitty and I have benefitted greatly from the last two cycles and see BOO in a much better position now than any time since my first investment,
Glad you got PFC - I bought 120 & 110 but missed 101 should push to 170 slowly
I do think towards FY results BOO has to push through 370 & hopefully hold 400 if the FY results are as solid as we all expect them to be. I guess the cash position with purchases my pull it down but I'd hope thats priced in already.
The US uncertainty is all thats holding it down at the moment. Problem is press/sentiment with twitchy PIs can drag this down as we've seen 3-4 times in 12 months. Still might take 1-2 years for this share to stabilise once the mess is all cleared away.
Kitty - with respect to the patterns you describe over the previous year, it seems to me that in each case the sudden and material decline was due to a very major and unexpected bad news story (Times investigation, initial Covid panic, auditor quitting). So I’m not sure how valid the thesis is that the SP will repeat these cycles in the absence of another such extraneous bad news event (US banning imports could be one, but this is very unlikely as others have noted)? The SP hasn’t moved during a year of great growth and perfect macro environment re online sales growth etc, PE multiple now I think materially lower than a year ago and it just seems like it must catch up at some point in the absence of another such calamituous event. Genuinely interested in your thoughts. (Ps I think you referenced Petrofac as a good tip a while back - thanks for that, it has turned out pretty well with more to come I think).
Kitty, back a while I would have strongly agreed with you but I think sentiment and support have, sticking my neck out here, possibly changed ineradicably. I believe lots of substantial holders have grown weary of the wearisome pattern Boo represents and sold up. This in turn has altered the landscape, resulting in a loss of momentum and so I don't see it easily repeating the same patterns at the same levels as before. Perhaps similar patterns at lower levels because it has succumbed to inevitable gravitational downwards pull that weary patterns illicit. I don't think it's in a death spiral but I would not be surprised to see it drift a lot lower and god forbid, if the figures disappoint any, even by a slither, the battering will be savage. Unfortunately, a great British company that has become the perennial pariah of fast fashion. Give a dog a bad name, chuck enough muck and it will stick and all that.
Yes still on the slide nothing telling you to buy at the moment for sure .
The 311 support is holding quite well considering more sellers
Absolutely as we’ve seen it poke through 370 a few times & it was 433 pre all the 4 stories of slavery, tax fraud, auditor and US prospective ban. Pre results I’d fully expect this to trade 350 to 380 bar no more new news & at some point it has to break back through 400 again
At least we are all agreed that there is a bottom here and then it’s onwards and upwards
I’d genuinely be surprised if 260 is touched unless really bad news like auditor, tax or slavery type news again but I do think 280/290 likely short term
Yes. If you look at its operating channel on the charts I believe it will go down to around 260 before climbing again.
So still quite a long way to drop.
Resistance Level 3: 328
Resistance Level 2: 325
Resistance Level 1: 321
Pivot Point: 318
Support Level 1: 313
Support Level 2: 311
Support Level e: 306
If you look at the 1 year chart there is a repeating pattern & I've played it 4 times this year. Simple formula - BUY below 310 (ideally 300) & SELL over 350. Whether you think it’s going up or down this week doesn’t matter because in the run up to FY results it will push through 350/370 again so buying now around 310 will reward even if we see 280/290 re tested. While there is bad news circulating out there (true or not) PIs are fickle & hence the volatility. As with ASOS just hold & if you can average down, but ultimately patience is key with this share. The historical patterns teach you how others trade this share taking sentiment & emotion out of the equation. Putting in buy orders lower & sell orders higher really remove emotion & deliver solid profits which is what we are ultimately all here for.