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Frankly the suggestion that the sp would go to zero shows clear ignorance or their short position
Refering to @tigers post. Boohoo have done nothing wrong IMO.
Who on earth caused criminal damage ant to whom. The police visit to Leicester produced no arrests. The main factory did not even have a contract with boohoo
Naive? you are giving credence to someone causing criminal damage, hardly 'the ones that count'. This all is forgotten about very soon, by monday i suggest.
No worse than ASOS nor next. All will blow over soon. Mark my words. Professional for 50 years
Yahoo back in the 90s had a pe over a hundred and everyone thought it was overpriced it went on into the thousands. Growth Growth Growth
Your comments are naive saying Pe analysis price to earnings is not an accurate analysis there already forecasting earnings to increase this year e commerce covid. 5p per share earnings and a price of 250 equals 50 pe. Look at the acquisitions, growth double 5p to 10p and pe is down to 25. ASOS is at a pe of 112 and bohoo is bigger so go figure. Look at super companies and mass growth and pe is rubbish what's Amazon and Tesla's pe precisely. Bohoos pe is irrelevant and to consider pe technically in shares is. materially flawed analysis
Stunningly naive analysis. I walked past a Pretty Little Thing poster at a bus -stop earlier today - someday had scrawled "Slave-Rags" on it. As I understand it from those who count, Boohoo is now "cancelled".
And that's without considering the legal questions that have been thrown up by the ongoing revelations. Certainly, no respectable institutional investor can go on holding Boohoo shares without trashing their ESG policies.
Given BOO was trading at such a high P/E, I'd think this could crash all the way down to 50p. It might well go to zero, if the revelations turn into prosecutions, as they may well do.
This was a house built on sand, not rock.
Paul Scott - Small Cap Value Report - Stockopedia. Paul Scott was a Finance Director for UK Clothing Retailers before leaving going into investing for himself and writing for Stockopedia
I see the BOO issue as a massive storm in a teacup. Supplier/sweatshop issues are a long-standing, sector-wide issue. For decades now, occasional stories appear in the press about some retailer being embarrassed by its clothing or footwear having been made in sweatshops all around the world, but especially in the Far East. This applies to designer brands as much as cheap brands like BOO.
As I've mentioned before, from my experience in the sector, it's almost impossible for retailers to police their supply chains, because you're dealing with hundreds (maybe even thousands) of factories, and your UK supplier often subcontracts the work out, which retailers often have no knowledge of. They turn a blind eye, because it's impossible to police, without enormous expense of having inspectors on the ground in multiple countries. Even then, the suppliers & their subcontractors would probably bribe the inspectors to sign on the dotted line in order to appease the UK retailer.
In my view, it's the job of Governments to police working standards and minimum wages, not retailers, which simply don't have the resources to do it, given how tight margins are now.
There's some naive research circulating, calculating that BOO's margins are likely to be hit hard by extra costs. That's nonsense. All that's likely to happen, is the UK manufacturing base shrinks, and product is freighted overland from other countries like Turkey (only takes a few days in a truck to get it to the UK). Or any number of low wage countries (e.g. Bangladesh).
It slows the speed to market, but that could be got round by using higher cost UK factories for the initial small production run for each new style, then within a day or two, BOO would know if it's going to be a good seller or not, then get the factories in Bangladesh or Vietnam, or wherever, making a much bigger production run. Air freight in part of it, and put the rest on a ship.
That could have some impact on the figures, from the short term impact of customer boycotts (these things fizzle out in about fortnight usually), and some increased costs. But I don't think there's likely to be much (if any) lasting damage.
There are ways around all these problems, and I see what's happening now as a blip.
I can imagine what BOO mgt would say about social media influencers withdrawing their support. It would probably go along the lines of: F*#@ them, we'll pay some other talentless social media flash in the pan instead.
This is a wonderful buying opportunity for a world-class growth business, in my opinion. I've filled my boots, and will keep buying more it drops further.