Member Info for alex1621

This company’s share price is being gamed by hedge funds and their enablers … it’s obvious to anyone who has spent any time in financial markets. People like you save no one, you just gloat at others, and add to the misery. You and people like you pollute bulletin boards. A sad act.

Jongle … if that’s true then you’re the worst type of investor. Going on a board, knowing every long is underwater, and dripping poison about where the SP is going. There are people who look at these boards, see those type of posts, get despondent and crystallise losses … only to look back several months later and realise they didn’t have to. Remember you’ll be in the same position one day.

Jongle - a guy who only posts on BooHoo board and talks negative in every one. Pot, kettle, comes to mind. Good luck with your short.

Reardon - I'm a bit suspicious about who was behind the "takeover" rumour ... seems like a good way of closing and reloading, bringing in new investors to short at a higher level? You can be confident about upping your short position because you know the rumour is false (as you are the creator) ... and as Max correctly pointed out, the shorts were raised on the news. A very risky move if an RNS was possible? Looks like another dirty trick.

Thanks Steelstone. That was a great article, everyone should read it. You see almost all of that happening with BooHoo.

One you see on here is "price anchoring" ... this is going to 60p, I will buy it at 40p, etc ... head fakes that psychologically anchor you to that price. Melissa and Max come to mind.

The other interesting one is hiding from making a declaration, by going below the limit by the end of the day. Was down 4% late afternoon, but ended up down 2.7%.

All of the tricks on display.

Best advice came at the end. Buy, hold and don't look at it.

Thanks RAG, that’s why I said think? So Thursday.

ASOS join the main market tomorrow, I think, and even they ended down. It will be interesting to see how that move pans out.

Markets are a rigged game, and AIM is the worst offender. I would only be concerned if BooHoo was crippled by debt, and going out of business. Instead it’s grown 30% in the UK this year … it has issues, but not ones that can’t be overcome. It’s important to step back, and look at the fundamentals. Benjamin Graham attended a Senate hearing after the Wall St crash, he told them that eventually market prices reflect intrinsic value. But at times the two are disconnected. This too shall pass.

I think C4onthego is right. Betaville rumour gives cover to close and reload, it brings in new private investors, and you can smash the SP down again from there.

To the point of capitulation, when private investors raise the white flag, take their losses and exit stage left.

Meanwhile, BooHoo continues to trade. If you bought shares you bought a part ownership in a business. You didn’t buy a share price. A terrible year, with 30% growth in the UK … yet you’d think that Kamani was putting up the shutters, and locking the door?

BooHoo Russia and Ukraine sales are going to take a hit. Should drop 90% at least. What’s 90% of zero?

The uncertainty leads to market drops. Nothing positive today. A great opportunity to put selling pressure on.

The newspaper articles followed by more shorting are designed to mess with the heads of private investors … you get scared, you sell your holding … only to see it soar beyond your buying price later, when the pandemic is history and supply chains get back to normal.

As Reardon just indicated, it was last at this price when it was a less than £300m in sales company.

These are the times as a private investor when your mettle is tested. Marshall Wace and their partners are skilled in pushing people to the point of capitulation. An army of psychologically exhausted small investors do their work for them, and crystallise losses whilst they make gains. But no one has died? BooHoo are still selling garments, the business continues albeit through a difficult time … but these times pass. And better times arrive.

Reardon, that financial year sales were less than £300m. Something to ponder given they are almost 6 times higher now.

The sellers are hedge funds, who borrowed the shares for that purpose. The weekend press activity was a tell, and normally signals more selling. Some stops get hit, some private investors sell out of fear … that’s how this game is played.

I’ve no idea what the update will reveal. I very much doubt that the supply chain related issues are over, but there might be some signs of improvement. If the Finance Director is smart, he would have lowered guidance to a point he was confident of hitting. But I don’t see even a good update deterring the short operation, you will need a few to do that, or a violent surge in the SP.

I’m pretty confident this will turn, but I’ve no idea when. I don’t need to sell, so I won’t. I’m okay with holding for years, but I don’t think it will take that long. The Ukraine business will rattle markets, but normally markets stabilise after the tanks roll in … as there is no longer uncertainty. But it helps the shorts.

NOFEAR ... that post looked fear inducing. If you buy shares in a company that is then subject to a short attack, is that "doing the same thing over and over again"?

A better analogy for markets came from Benjamin Graham. He introduced investors to Mr Market, your partner in business. The poor man was bi polar, going from extreme optimism about the value of the company to extreme pessimism. Graham's message is that Mr Market is there to serve you, not to guide you. You take advantage of his offer to buy your shares when he is extremely optimistic, and quotes a high price. But what you should never do is get caught under his spell, and let him influence your decisions when he is extremely pessimistic, and quotes a low price.

If you focus only on SP, emotions will dictate your decisions. That's my tuppence worth, good luck to all holders. I will keep an eye on this one.

Shorters want everyone to focus on the SP, and if they can keep on pushing it down they can knock out stops along the way. They don’t want you to step back, and look at the fundamentals of the business, and value it like it was a private company. We all like to think of ourselves as rational and logical … but we seldom are where markets are concerned. When the SP goes lower, fear stops anyone from buying, and drives people to sell. Fidelity found that their most successful investors were dead (so no movements in their portfolio). The next most successful had lost their password access, and couldn’t interfere with their portfolio. Funny, but worth thinking about.

I’m not invested in THG, but it does look as if the current market cap is way below any objective valuation of the business. The Ingenuity platform may have been hyped, but the rest of the business looks sound.

I was looking at Sports Direct yesterday, now known as Frasers. Not that long after the IPO it issued an update that was disappointing. It was immediately shorted, all the way down to 42p. I recall that Ashley referred to complaining shareholders as “cry babies”. He just ploughed on with the business. Around 4 years later it was over £8. You’d have made 19 times your investment from the low. Shorters can push a share price to levels that no one ever thought possible. But if a business continues to grow, it’s hard to keep that selling pressure going.

You don’t think a group of hedge funds are working in concert on the short side? I have a few brokerage accounts, I could issue buy orders in all of them. Nothing illegal about that.

David … to be honest it’s almost impossible to pick a bottom. So if large amounts of stock are being borrowed, then sold, the mechanics of buying and selling come in to play, whatever an objective valuation of the business is? So if I have a billion GBP in my bank (I don’t) and I hook up with a number of brokers, I can go into the market and buy up to 29% without triggering an offer for the company. If I did that the SP would rocket … but nothing changed at BooHoo? It’s a game.

Whenever you see negative press covering only shorters talking points, like the Sunday Times yesterday, you know it’s a prelude to more shorting. That’s the game that’s being played. The antidote is positive updates, and on a personal basis having the patience to wait for them.