Member Info for alex1621

If management or private equity or another investor made a bid for Boo Hoo, would it be at 37p, lower than 37p, or higher than 37?

Given what happened at THG we all know the answer to my rhetorical question.

So on the subject of “suppression”, how credible is anyone who suggests that the current SP reflects intrinsic value?

If Boo Hoo were a private company no one would be talking about SP as the focus would be on financial results and the underlying trend in those results. Too many of us allow “Mr Market” to rule our thinking.

I’d recommend watching the documentary “Gaming Wall St” on HBO Max.

For anyone who believes that share prices are never subjected to manipulation.

Ashley's motivations?

I suspect that as an experienced retailer, who has been down the same road as Boo Hoo (with short activity, badly damaged SP and bad publicity) he sees this as an investment with a large payoff. I think it is more of an investment than a strategic play. I suspect also a bit of trolling re the Kamani family, who pipped him at the post by acquiring Debenhams. I don't believe it is a prelude to a takeover, but it may force the Kamani's to offer a higher price should they want to take the company private. And that is reassuring.

What they know is that online retailers continue to suffer from supply chain issues, inflation and lower consumer spending, etc. it’s not a great environment for a company like Boo or ASOS. So MW feel they are on very safe ground … the question is for how long?

Mike Ashley is an opportunist and he’s still smarting a bit from Boo snatching Debenhams from under his nose. So his motivations are difficult to assess. I wasn’t that excited by his entry on the shareholder register. But Umar Kamani is a different matter entirely, as he is better informed that anyone on here, and strikes me as someone who makes moves only to make money.

I don’t expect anything imminent, but I do expect the operating environment to normalise over the next couple of years. And when this share moves, it will do so violently and very quickly.

IParsnip ... I wasn't patronising, so I've no idea why you are so upset?

There is too much focus on SP on this board, and board participants are psychologically anchoring onto whatever anyone says about the SP. This makes no sense. Boo Hoo is up 3.2% today ... so what happened at the company today that led to that? ... ABSOLUTELY NOTHING!!! The business never changed, the "market" doesn't know whether sales were good or bad today.

But what I do know ... from experience ... is that if the updates begin to reveal material improvements in the underlying business then the SP will rocket ... and that is what I'm interested in.

IParsnip … I wonder how many people care? I personally don’t care about 40p .. I’m much more interested in wether the business is recovering from a very tough 2-3 years, and that will play out over months and years. Because when the business shows clear signs of a sustained recovery 40p will be a very distant memory.

On a day to day basis the SP can go anywhere.

No real surprise that the SP is down, as the share is still heavily shorted. They’ll be out in force to dampen any enthusiasm. That won’t change until solid evidence emerges of a turnaround in fortunes. The last update was better than expected and the Kamani purchase leads me to believe the next one will not disappoint. It’s only when the numbers turn that this becomes a risky short. Until then patience is a virtue.

SCB ... technically that would be illegal, but it is a very grey area. It could be argued that director buys are also based on the possession of superior information to the ordinary investor? Bear in mind also that he has a whole network of contacts in the industry, so superior information could come from multiple sources.

It looks to me like Kamani bought 3%, but whether he did or whether he simply topped up sufficient to trigger an RNS, simply misses the point.

You have to consider whether he has the same level of information as the average poster or he has better information? My guess would be that he has better information. I think it is unlikely that he'd be buying shares if the current trading performance is below expectations.

Time will tell.

SP spurt fizzling out no real surprise, as any organisation short will want to dampen any enthusiasm.

The Kamani purchase doesn’t say anything about business performance … but when we look back at this period it might be viewed as a signal. A long way to go.

T4G ... I think you are right. I had a look at director purchases and it was the July 2020 purchases by Kane and the elder Kamani during the pandemic that I was thinking about. The shares moved rapidly upwards during this period as Boo benefited from lockdowns..

So if this is Umar's first splurge, it is significant.

If my memory serves me right the last time he bought was prior to the lockdown boom? I might be wrong about that, so ready to be corrected. Strikes me that he is an opportunist who bets on a sure thing. I don’t see him investing unless the numbers are going in the right direction.

Let’s see if I’m right or wrong when the next update arrives.

That's a pretty significant vote of confidence ... from the ultimate insider!

I suspect that the next update will be positive.

Southcoast ... agreed. That's my posting for a while ... I'll let the trolls get back to the day job.

Seems to be a melt down going on amongst the trolls?

There are some "investors" who believe that the SP tells you everything. So when Rolls Royce was trading at 38p you'd be roundly abused for posting optimistically about its long term prospects ... the SP is almost 5 times higher today, and expected to get higher still! Go figure?

Daytrader ... you seem to care a great deal presumably, otherwise you wouldn't engage in sarcastic posting?

You say you hold, but who really knows? Or cares.

Fortunately, I don't follow your posts GAZILLIONS. Emotional? Nice try at gaslighting, but no cigar!

But it does make me wonder what emotion was "triggered" by my post?

Daytradernovice ... I couldn't care less about the "trolls", particularly if they have no declared interest. I've not seen any that claim to be short, and if that's true they have no impact whatsoever.

But it does puzzle me why anyone with no interest would spend any time on a bulletin board relating to a share they have no declarable interest in?

As I explained in my post, it's a difficult period for online retailers like BooHoo. Just as it will be at other times for every share on the FTSE or AIM.

My observation over the years of trolls is that they don't stick around when the tide turns. Maybe you'll be different, but my bet is that you won't be?

GAZILLIONS ... you have no idea what the short interest is? You only have to report above a threshold, so you've no idea what the real short interest actually is below this level. Looks like your theory has been debunked? No need to thank me.

A virtue that few of us possess. It's unlikely that any company's share price will thrive when its trading environment is challenging and it is being heavily shorted. I can't see much changing until the macroeconomic and supply chain related issues noticeably improve, not to mention general trading conditions.

Are there any reasons for optimism? Inflation appears to be on a downward trend and that will likely lead to a reversal in the interest rate trend sometime down the road. Add to that an end to the war in Ukraine and we might be closer to a new bull run than is obvious at this moment.

I'm doing nothing ... what others do is a matter for them.