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I’d beg to differ, the currentshare price weakness is 100% related to adverse press articles.
The business is actually outperforming expectations. The waters will clear as Boo directors are addressing issues and the sp will rise to match the balance sheet.
The group reported revenue had increase 45 per cent to £816.5m in the six months to August 31, up from £564.9m the same period the year before.
Pre-tax profit also rose by 51 per cent to £68.1m in the same period, up from £45.2m.
The group said it now expects revenue growth of 28-32 per cent for the full year, up from a previously anticipated 25 per cent.
@David , you're right and sensible that that is a case - for me, I'm on the board of a ecom retailer (dif industry) and heavily involved in ecommerce - I can see from my side at least that this Q4 will be (and has started to be) the biggest for pure ecom retailers in terms of revenue and profitability ever. There are going to be mega winners this year and IMO Boohoo is going to be one
Now, the fun part of these boards is that you have no idea who and I am and whether to trust the above haha - all the same, the info above is generally out there in industry reports if you want to dive into it!
HarChris From what you say I take it you are sitting on a loss with Boohoo right now and are in hope mode.
I wouldn't assume Boohoo SP will grow consistently on good results, they have consistently published good results for years, but it's not always reflected in the SP.
Great results a month ago, SP drops from 400 (intraday) to 215 (intraday).
Just spend a few hours comparing trading updates to SP movements, there's not a lot of logic in the price movements. You'll see examples of great results, but the SP falls for months because there was worry about margins: hard to predict those worries in advance.
Part of the current SP weakness is related to how the Christmas period will go. 6 months from now we can look back and say if the market was right/wrong to be worried about Boohoo sales this Christmas, but right now we don't know for sure. So there's no guarantee Boohoo will rise back to 400 anytime soon even though on fundamentals alone it should be 400+.
The point I was trying to make David is that this is at a huge discount right now due to all the problems. The tide is just starting to turn and so for me it's worth being invested from now in order to reap the rewards rather than wait to jump in at a higher price once sentiment has turned.
David, not everyone has to wait for news to invest. Boohoo is without doubt undervalued right now for a number of reasons. I see fair value anywhere between 300p and 500p depending on how good trading is over christmas. Therefore to me, it makes sense to be fully invested because my worst case scenario is still a small rise from here, my best case scenario is an almost 100% increase.
You do you.
People will still want to feel good, get together where they can in public or private, boo isn’t expensive, there is adequate support deform government, people haven’t spent out on holidays, cars, transport, fuel etc this year. Online shopping is growing & the high street is dead. People love posting this stuff online to. People love to shop.
I’m in the camp that fully expects lockdown v2 to equal jump in sales v2.
It's funny reading this forum, many here are so stuck on the day to day SP movements instead of taking a big step back and look at the big picture.
Covid-19 infections are increasing, lockdowns are more likely, this in principal helps Boohoo, but only if people keep spending and for it to help the SP it has to be more than before: the market doesn't want the same growth, it wants more.
Can anyone say for certain how Boohoo sales will go over December? NO.
Until it's clear how people are behaving the SP is likely to flounder.
If you think people will be sensible and save instead of spend this Christmas, Boohoo will probably have a bad Q4.
If you think people will be stupid and keep spending, Boohoo will probably have a good Q4.
If you don't like gambling wait for announcements in late November/early December for how Black Friday sales have performed.
I'm tending towards Boohoo having a good Q4, people tend to be stupid, BUT I'm waiting for confirmation before buying into Boohoo again.