RE: Some reasons to buy Boohoo instead of chasing companies with debt.23 May 2021 08:14
law007lu. A companies share price on its own is meaningless without rega to shares in issue. For example boohoo could consolidate its share issue by cancelling the existing and issuing one new share for each ten held (or ASOS could do a split, ten new shares for one old). Nothing about the fundamentals would change but your calculations would be wildly altered by the resulting changes to the share prices.
Turnover on its own is also misleading, if a company was selling goods at cost price then it is likely they would gain a fantastic share if the market. Hence the saying; Turnover is Vanity, Profit is Sanity. (I'm not directing that at Boo or ASOS)
A solid comparison would be comparing the Price/Earnings Ratios of competing companies. That is the share price divided by the earnings per share. It is the 'per share' part that is vital and your comparison ignores.
Looks like some are unfamiliar with Management Accounting and also likely never to have owned their own business and engaged a 'high street' accountant, where there is always a forward looking aspect for advice to maximize tax efficiency as well as presenting the past in the most favourable form for the client.
You've hit the nail on the head regarding varying conditions and their suitability for fully autonomous driving garrym79. Around 2015 all the car companies were promising to have autonomous vehicles operating on UK roads as of now, but all we have in reality is a few 'driver aids' that are of questionable value. Presumably this is because what is technically possible and the real world situation, such as a single track rural road with few passing places, in fog, with the cars cameras and sensors slathered in mud, don't match up.
The fact that one of the biggest achievements of the technology seems to be that it can keep you in a given lane sums it up for me... great for the USA where picking a lane and sitting in it for miles is permitted, but in the UK that is lane hogging, something we could do with less and not adding to with those trying to show how clever their new car is.
Can't myself see the rationale behind widespread very high amperage home charging. Obviously the wealthy would be potential customers but part of the 'greenness' of home charging is doing it overnight on off peak where time isn't particularly material. Charging at amperage levels that reduce charging times to sub 20 minutes lends itself to charging stations with shops, coffee shops etc which are beginning to appear. There is bound to be some demand management by tariff structure in the future and I'd expect options for those with flexibility doing low mileage to have beneficial tariffs that allowed power to feed from the car back to the grid at peak times.
Rather academic for me, my motoring choices will never get me on Greta's Christmas card list for many years to come.
Villa01, those in government setting arbitrary targets have no concept of the practicalities. I think they've dropped the more egregious recommendations now, but some of the reccommendations on early household Energy Performance Certificates were hilarious, several thousand pound micro wind turbines to save twenty quid a year - with no thought to potential maintenance and lifespan.
rafafa, all I can say is, I followed this board from 2015 without using the filter. After a couple of months on the Aim clothing company bb with a sp currently more 200x here I had to resort to it - for inane and disingenuous posters in both directions. A recent record was a dozen green boxes stacked on top of each other.
rafafa, Aim shares will be attractive to day traders as no stamp duty. Do you have any evidence that other Aim shares such as boohoo at around £3 or ASOS at £50 are hardly daytraded? It's certainly not the consensus on the BOO board! 5% of five grand invested, or whatever, is just that whatever the actual number of shares or their individual cost.
Irrespective of the amount of shares, exercise of options can't be called a cash raise, the options are disclosed when originally granted and assuming they are 'in the money' of course they will be taken up at some point. So krisnew, you haven't predicted anything and you have a hopeless grasp of numbers to boot.
RE: Intrinsic Value of a Boohoo Share05 Apr 2021 19:19
Just had another look a BBC 'red button' business news. Boohoo has slipped down the list now, above us - Penguin books are keeping furlough cash despite record sales and Amazon 'illegally retaliated' against climate activists. Anyone going to boycott them?..... thought not.
RE: Intrinsic Value of a Boohoo Share05 Apr 2021 13:23
wyndrum, ultimately, decisions about quality and pricing are down to the company that owns the brands and boohoo owns all the brands involved, unlike Waitrose v Tesco or Rolex v knock-off. It's not even hypothetical about companies moving their brands to different positions on quality and price, M&S is nothing like quality it used to be, similarly Mercedes after Chrysler involvement. There is no registered benchmark for a given level of quality (subjective anyway) a brand must maintain in perpetuity.
The primary implications for boohoo getting it wrong on the branding, quality and price mix longer term would be destruction of shareholder value through loss of existing customers and failure to attract new ones which would naturally occur. However the worst that could happen to any individual customer would be the need to return the item for refund that made them think 'This is not what I expect from xxxxxx brand' and then shop elsewhere.
That is the point I take issue with the BBC story, this IS valid consumer news, but does NOT merit top billing on business news, disingenuously giving it equal ranking with the 'slavery' issues.
RE: Intrinsic Value of a Boohoo Share05 Apr 2021 11:47
11:13, 'different pricing and now this' . I would say 'this' is part of 'different pricing' as the the dress was at different prices, as were the coats. Perhaps you had an idea there were three things but 'Auditor resigns' slipped your mind?
Whilst boohoo obviously needs to get a grip of the brand identities and pricing, the worst that can happen to any online customer dissatisfied with their goods is the slight inconvenience of having to return the item. Those affected by the slavery issue may have comments to make about the relative merits of the issues that seem to be getting equal prominence thanks to the BBC and many eager to 'gold plate' the issue.
Magnum.PI. Could work the other way, reinforce the concept of value from those who are buying at the cheap end of the range, thinking others are paying more.
You can clearly see the shared parts across the VW group range in current models nowadays. Historically a Skoda might have had the previous model Golf dash and the ubiquitous EA888 engine in the previous power output but they don't seem bothered about that now which is quite surprising when they were emerging from dieselgate and the experiments with monkeys being piped exhaust fumes to breathe.
I sometimes have a look at the BBC 'red button' news items, they are running this latest story as the top item on the 'business news' section - completely disproportionate.
Meanwhile on the 'local news' page for York and North Yorkshire, three of the four items relate to what used to be known as Cleveland, totally removed from York and its surroundings, and the other is about a woman from Leeds - in WEST Yorkshire.
And there is also another story still showing predicting a late surge of traffic on Good Friday!