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Yeh and the profit warning is because they selling out too quick right.
And correction, trakm8 I've had sub 17 as a location to park loose cash whilst protecting it. Whey its jumped up but rarely has fallen below that point.
Dw hang in there mate, £4 will come, ill let u know when to pull your head out from the sand.
It's funny watching people talk about shorting.
This is an aim stock, I know very few brokers who would offer shorting on this. And the ones I am aware of are only available to High capital accounts.
So Private INVESTORS shorting would be marginal if any.
I maybe wrong as I have only run long
And don't listen to the endless waffle of those who bought at £4, £3,£2... they are emotionally married to the stock which is understanble, restricted from making rational investment decisions because of the magnitude of their loss becoming handcuffs. Its an amateur mistake, never get married to thr position.
This business works on very tight margins. Like pound land, it sells volumes making pennies. But if inflation and a weaker currency drives cost of materials, inflates wages, and generally increases cost, the margin evaporates to a loss. There is more pain to come here as I outlined many times.
for those who ask why I comment, it's a simple fact that I still like the company, but like any stock, it's all about timing and the right price.
My outlook is park your money in more resilient stock like nbrown or trakm8 and when the time is right buy boo. No point riding the roller coaster down especially even economic shyte is only getting started.
TIMING IS EVERYTHING
Probably downloaded t212 and suddenly became a financial expert (disclaimer: this is not financial advice) haha
My point is this has room to fall and your best protection is small caps.
Once again very little understanding.
The company is decades old. And started when black boxes were targeting students and new drivers.
Covid changed its model. Now people are working from home, they no longer use their cars for commutes and so want to pay less for less mileage.
Therefore the take up rate of payg insurance policies has rocketed in the US and Europe.
Even if you have knowledge of behaviours and macros. Today's update shows a 78% increase in their insurance telematics boxes. The itself tells you insurance based telematics underwriting is rocketing.
It's closest equivalent is qtx and saas. Both with mcaps above £150m.
Ttakm8 is a low risk option as its still not been rerated. Intact the brokers have a pt of 40p based on previous performance and not even the recent update.
The point is a £10m mcap will fall little given the change in behaviours driving its model. But its upside is major.
And the ownership shows with 80% stock owned by insiders and institutions
I remember those days when people were recommending you sell your house to buy this at £4 as it was so CHEAP.
ANYONE who went against it was a shorter right.
YOU said come back in a few months and you'll be rolling in it.
Well it's been a few months, and your certainly took everyone for lemmings.
A few of us gave our opinions with arguments that had merit. I hope you're followers appreciate you
You saw 30 briefly when inflation was marked at 8%
Now it's pushing 18% with the pound being the weakest it's ever been.e
You haven't seen anything yet.
No matter what liz does, she's fighting European fiscal and monetary policy. She can't win hence why the currency has weakened so much. We don't have eu monetary protection anymore. Our debt is our debt
In any of thr last 3 recessions, the best defences as been small caps hence nbrown and trakm8 as suggestions.
A stock with mcap £10 or £100m has very little to fall compared to one which is £2 or £3bn. Hence why boohoo has dropped so much, even at £500m, given its margins are destroyed, it has room to fall
All m saying is diversify a little and don't stick everything on one stock.
When rates by boe and ecb go up, based on yesterday's fed hike. This stock will get further bash around and you will deffo see a equity raise to shore up working capital. Sadly you will see 30s
Haha
Looks at my previous post. I did say at multiple points( £4, £2, all the way down to here) why boohoo was ultra sensitive to inflation. I gave my price target as valuations is what I do between 40p to 50p. And here we are.
You asked for alternative inflation hedges, and I gave nbrown and trakm8.
Slate all you want but gave a full breakdown of why and where very early on.
Forecasting and valuations is what I do for a living
Trakm8 ltd, one of my recommendations i gave here just put out a Pretty significant update. Insurance up 78%. Moving it's connections to 300k!!. Comparing it to similar companies
Qtx has 600k connections, mcap £160m
Trakm8 as 299k connections, mcap £9.5m