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the directors sells over the last month. What's peoples thoughts?
Liberum has upgraded Next (NXT) following a ‘resilient’ Christmas and sees opportunity for retail outperformance as well as M&A as rivals collapse.
Having previously placed the stock ‘under review’, analyst Adam Tomlinson upgraded his recommendation from ‘hold’ to ‘buy’ and reinstated the target share price at £83.00 following ‘very resilient Christmas trading which beat expectations’.
Next’s shares were trading at £76.02 at time of writing on Friday, down 1.2% on the day, but up 7.3% over the week.
Tomlinson said Next is now predominantly an online business and he is ‘positive about further online growth as Next attracts new brands and develops the Platform Plus (where it sells items from partner brands)’.
‘We see opportunities for retail outperformance and M&A as many high street competitors have collapsed,’ he added.
Wow, Thanks Gewillia, for your in depth views.
I bought Nxt shares at the start of lockdown, as I thought they looked value at £40.00. This proved to be a sound investment.
I have owned them before, as my wife used to be a store manager, and I have followed them, with interest, since 2000. Sometimes wishing we hadnt sold them at £21.00 way back then, when they had already doubled in price., from the £10. we paid.
I bought Boo hoo only two months ago at £2.90, as I thought internet shopping is booming under present circumstances, and their trading announcement is due middle of Jan. I thought there may be a little earner to be had ? I plan on off loading them fairly soon.
I have nearly doubled my original Next investment, and I did plan on selling once the price reached somewhere near £65.00. My question now is, do I hold, or cash in ? I dont need the money at the minute, so do you think this could still keep rising, or should I take the money and run ? Many thanks again, Jimmy boy.
A board with little chat is usually a sign of a good, steady investment.
Boards with lots of chat are usually full of amateur investors who believe the nonsense posted on the boards and end up losing money.
JimmyBoy, I suspect the answer to your question is that both companies attract different types of PI's. Next is a beautifully managed plc, with a 3rd-generation family CEO, smarter than a whip. No flash. No Lambo's in the drive. No Instagram bling.
The result is that, after the worst possible year for retailers, Next came into this year with it's SP at the same as 31/12/19 - £70. Up another fiver today because online sales are going gangbusters. This is not a high fashion schmutter business, just a blooming well-run one.
BooHoo is fascinating and completely different. It lives on the edge all the time. So far management has caught the tide for disposable, cheap, tat for the youngsters. Can they continue to call the market and produce exactly what the kids want? SP up from 40p just five years ago, to 350p today. That's the kind of PI they attract. People looking for 5-baggers and more. But look at the SP in the past year. Up and down like the proverbial *****'s-drawers. Into the year at £3. Then £1.50 in March, followed by a peak of £4.15 in June and a collapse to £2.10 in July, when the Leicester sweatshop stories broke. You need very strong nerves to ride this camel, unless you're you're just playing with a few hundred quid, because that totals to £7.50's worth of share price movements - in a £3 stock!! Any PI who deals in five-figure chunks doesn't need the hassle of unexpected scandals, newspaper headlines and bling-bling management. Why not? Because we've seen all this before. The old story is true. The patient tortoise, like Next, usually wins the race. The Flash-Harrys go off like a sky-rocket and then go bang, half-way round the track. Which isn't to say they're not fun to invest in. They're often great fun, but you have to be ready to either get your fingers burnt unexpectedly, or get out fast, after you've doubled your money. That's why the BooHoo board buzzes and we old bores sit here snoozing, while Wolfson gets on quietly plotting his next move. (Like the pun? It was accidental.)
Should dividend chasers look elsewhere? Selling on top of a healthy rise must enable some cut price bargains to be had?
It just depends on how much trust can be had in NXT mgt. Maybe acquisitions activity is priced in or maybe not? It would be surprising if not.
Next stopped paying a dividend last year because it was uncertain as to it’s future profitability.
It has once again made a substantial profit to be added on to that of last year and must be sitting on a huge accumulated cash pile.
Can we know have a dividend-please don’t waste the cash on acquiring part of Green’s failed empire
I am not too displeased with the statement.
not so sure
Looks like a good trading update to me, better than expected results
Why is this board so dead compared to others ?
Is there another one I should be on ?
The Boo hoo chat is always buzzing.
Interesting to here peoples thoughts on the trading statement in the Morning ?
Thanks.
Report Tuesday
Strong company but have made good gains recently
Wow, Any reason why this rose so much Today ? Didnt see any news anywhere ?
I am always interested in alternatives to the stock I look at. So long as it is not absurd ramping.
However, NXT has interested me for some time, knowing they have long competent history and their current finances look sound. I have bought a few today anyway at hopefully a good price.
I agree posters shouldn't post on the wrong BB but to be fair to Kitty BOO do have a lot of tailwinds going for them and historically their SP is likely to rise considerably from it's current price. Worth a look.
in a word yes -there used to be another one -"the man who can" who was plugging primark -!!!!!! they are deluded and always and end up with egg on their face and eventually disappear -Next are in a different league -to put it in context its like Hipperholme United trying to create a rivalry with Barcelona
Yes, I don't understand why the likes of Kitty go on sites to plug their own investments, are they deluded enough to think they have any influence on the share price?
Boo Hoo at 277p today. What was that about your "last chance to buy at 310 to 320p to make 50%" ? Looks like Kitty Kitty spilt her milk again. Is this anything to do with their buying stock off dodgy sweatshops in Leicester that fail to pay the minimum wage?
I'd rather invest with Lord Wolfson, thank you very much. Much more upstanding and the family has been at it for three generations. No Lamborghinis either.
This has not aged well (at least yet)
The NEXT H1 results are massive for Boohoo
Next SP is up 2.63% on H1 results
https://www.lse.co.uk/rns/NXT/results-for-the-half-year-ending-july-2020-6yghgzj5x4aw2i6.html
Next last year did 3.997B revenue with 854M profit
BUT in H1 their sales from RNS were -33% down with guidance for -12% down on full year - Ouch!
They only made 9M profit H1 - down massivly
In store sales are clearly declining & people are moving online
Boohoo last year was 1.234B revenue with 90M profit
H1 guidance is 25% growth that they will achieve or exceed
Estimated H1 profit should be around 55-60M+
That is a lot more than Next
This is excellent news for Boohoo
I have been looking at the numbers & think 480 is a reasonable target for 6 months time, with an interim SP on 400 approx come Sept 30.
If you look at 2016-2020 numbers they grow 44% to 97% every year without fail.
In 2020 they did 1.234B revenue generating 91M profit.
Extrapolate the growth at 50% (they guide 25% but 44% is the lowest they've done & lets face it Covid will be 50-100%) so a conservative 50% puts Feb 2021 @ 1.85B revenue with 135M profit!
Current Market Cap is 4B would be 6B giving a 480 SP
Compare ASOS who did 2.73B revenue with only 35M profit & now have a 5B Market Cap
Boohoo looks more interesting as multiple brands, better worldwide presence & higher profit than ASOS.
Also through Social media & celebrity endorsements they seem to have better momentum
ASOS is 'only' growing at 13% - 19%
So from this it looks like a 50% gain is achievable in 6 months
We have 9 trading days to buy in at 310-320 for a 25% to 50% gain - be greedy
"be greedy only when others are fearful"
Warren Buffett
I've put a post on the Boohoo board "why the NEXT H1 results are massive for Boohoo" as their results are out in 9 days. A chance to get in. Next is a solid brand that I held for a long time & had love for.
Disappointed with the 5% retrace but I guess that’s the current climate and sentiment, was hoping we’d go like boohoo! Early though days I suppose. Soon at this hits mid 60’s I’ll probably bow out
This is oversold. Next is a well-run company so moving forward SP should continue to rise.