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Pmoran well said now ...There’s plenty of risk associated with this stock but if, as I do, you believe the uncertainty is priced in... This is sort new Bottom... Auditor will be found even if that have to be forced at extra cost to BOOHOO... last results were brilliant and next are going to be even better... All THIS WILL BE SOON OR LATER FORGOTTON ...
Heres one for you KK (and body else),
Do you think that there will be now, extra costs on boo once all the extra governance costs and presumably higher costs of production through higher wages?
If so, how much? How will that affect overall profit margins? Will it effect them at all? And if not why not?
Do you think the rate growth will be affected at all under the current economic climate?
If you have no idea (or simply are just guessing), then how on earth can anyone here forecast the SP over the next 12 months?
Does everyone just fixate on the hourly SP here to make their long term forecasts?
Wyndrum, when the share price dropped off a cliff in July following the times article the main reason was that institutional investors offloaded shares. As I see it for the share price to have a chance of reaching new highs of £4+ it will require institutional investors to buy shares.
The hl comments are spot on insofar as there is much that is unknown about how the company, regulators and the city will react to the Levitt report.
I think we can remain confident that boohoo customers have not been affected by the minimum wage allegations or the loss of pwc etc and for the time being it seems that boohoo are continuing successful growth both at home and abroad.
However what we cannot know is whether there will be fines levied against boohoo, whether boohoo will quickly and robustly address the Levitt recommendations and whether in doing so their margins will be affected or whether there will be significant costs to implement.
I believe the board have a desire to continue to be successful and will do everything necessary to improve the company’s image and reach the required market cap that will get them their bonuses.
Perhaps the share price should already be £4.60ish instead of £2.60ish but is being held back by the uncertainty as suggested.
So for me it’s a simple question of do we think the uncertainty is priced in and are we satisfied that whilst there are issues in the Leicester garment industry boohoo are not directly involved in tax fraud, modern slavery or health and safety issues Etc?
There’s plenty of risk associated with this stock but if, as I do, you believe the uncertainty is priced in and they are not directly involved in issues outlined above then it’s a case of hold and expect it to rise as the issues that need to be addressed are addressed. Of course I am only a hold because I didn’t get out at £3.85 and am currently holding at an average of £2.50ish.
If I wasn’t already holding I think I’d be watching rather than buying because of the uncertainty but if the next news about boohoo is an update on the factory or the opening of a distribution centre in North America to manage the unprecedented demand (and such news won’t be far off I’m sure) I’d be hitting the buy button!
Just come to check how many of my friends here trying to de-ramp... could we break that 270 target and get over 280...
but the question is why do you want to discuss the problem?
KK, the positive news does not another person to tell everyone.
The problem here as I get evidence from your post is that no one wants to discuss the actual problem. Most here want to sweep it under the carpet and claim that it is nothing to do with boo, that it was all 3rd party suppliers of which boo has no involvement or liability. Which is not true or boo would not say it is going to make changes to its governance procedures.
I guess it will be stuck in a trading range until this is resolved and the final costs can be calculated. At that time the city can re-appraise Boo's valuation. Then the fundamentals can be -re-applied and longer term forecasts can be discussed.
I have no financial interest in Boo. The actual gains that are on offer with boo compared to the stocks I am in are not attractive to me.
And while you have all been here, stocks like G4M (online music retailer) EVE, (Online bed mattress), WOSG, (watch shops as well as online) , have all been soaring. The irony for me is that most here are myopically fixated on trying to get a 20-30% return over the next 6 months.
As growth stocks go, Boo's history is so so. (And over the last 3 years or so very poor indeed.)
See MM I think that's a little bit of the problem here (I get I can be seen as a pain, and that's ok, that's fine), buts HL's comments, not mine. The emotions run high here, but as I have tried to show, emotions in this game get in the way of good decision making. So reports that flag exactly why there are problems should be absorbed here and not dismissed by your (I have to say very gentle), attempt at shooting the messenger.
wyndrum you are definitely shorting here as if the forum was for fun you, as you said it was, you would also post some positive news but you choose always negative topics. You also, if not invested, wouldn't be spending so much time here making your negative views known.
Can always be certain of uncertainty from our friend Wyn.
Reading the HL precis of Tuesdays share purchase maybe sheds light as to why the SP remains under pressure.
It seems to be largely ignored here in the sense that we mention it in posts but don't actually seem to accept that anything is really wrong.
HL:Press reports have said PwC stepped down because the big four accountant was concerned about governance at Boohoo, which has been rocked by revelations of poor treatment of workers at factories that make its clothes. An independent report commissioned by the company said the accusations were true....Boohoo has promised to overhaul its governance, purchasing and supply chain after the report by Alison Levitt QC said there were "endemic" failings at factories in Leicester.
So it seems to say that Boo did know about this. It was not just a factory thing completely outside of boo's control.
So my conclusion is that there could be a fine coming down the track to boo. And if I am right the city maybe wary of buying boo stock until the scale of the cost of this episode is more clearly known. reduced margins, fines, cost of extra governance etc.
As we all know the city does not like uncertainty.