The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Analysts at Jefferies Equity Research said of the purchase: "Set to be relaunched in Q1'22, the Debenhams platform will provide Boohoo with substantial scale and a low-risk route into building an online marketplace and entering the strategically significant prestige beauty market."
https://www.theguardian.com/business/live/2021/jan/25/boohoo-buys-debenhams-55m-asos-in-exclusive-talks-to-buy-topshop-arcadia-ftse-pound-sterling-economy-retail-high-street-business-live
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, says Boohoo and Asos are likely to benefit from a strategy that involves “cherry picking” brands and assets from collapsed the Debenhams and Arcadia Group.
And for Boohoo, it could be its big break. The company has been trying to reclaim its reputation after an investigation by the Guardian revealed last year that workers in parts of its supply chain in Leicester may be being paid as little as £3 to £4 an hour. So bosses are likely to be relieved that investors are pushing stocks higher this morning.
Streeter says:
Boohoo aims to break into the retail big time with this deal. It marks quite a journey for the company which started as a fast fashion upstart and is now turning into a sprawling empire, by scooping up household names which have fallen into distress.
Showing just how far the once mighty have fallen, boohoo has only had to dip a little into its deep cash pockets to snap up the department store chain’s most precious assets. It’s paying £55m from its available cash balance which stood at £386.9m at the end of 2020.
Boohoo is turning its back on Debenhams entire store estate, seeing little value in bricks and mortar stores, as the shift to digital shopping intensifies during the pandemic.
Instead it believes that the brands and website will help it create the UK’s largest marketplace and position it to propel into international expansion.
It sees acquiring the home, beauty and sports assets sold by Debenhams as a big prize, allowing it to enter new markets, and expand from its pure fashion base.
Nope they won't. Topshop is way over-priced because of the bidding frenzy.
ASOS are in exclusive talks with Arcadia administrators.
This is a truly TRANSFORMATIONAL DEAL.
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2021/investor-presentation-jan-2021.pdf
Some of the most online traffic, Cosmetics is largest in UK, brand history, Clout
German online retailer Mytheresa valued at $2.2bn in US listing (4x Sales).
If we apply the same valuation metrics to Boohoo we would reach a price of
Approx full year sales est: 1,7billion
Valuation: 1.7 * 4 = 6.8 billion market cap
Share in circulation: 1,261.28 million
BooHoo share price: 6.8 /1.26 = £5.40 SHARE VALUATION.
We are way way undervalued.....Expect a re-rating
Listen to it here:
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2021/301335866-20210114090355.mp3
This thing is gonna go MENTAL TODAY
-- Alternative ethical suppliers are being identified as the Group reviews its supply chain across the UK and internationally, focused on setting a new industry-wide standard for ethical supply chains
https://www.hl.co.uk/shares/top-of-the-stocks
BooHoo not in the top 20 Buys today, but as the No.9 top sell. Basically PIs giving away their cheap shares to institutes.
This is going to £5 POST RESULTS
As the No.1 trend phrase
Over a million purchased, with the buyers paying a hefty premium. You know what's coming tomorrow....
https://www.investingcube.com/boohoo-share-price-2021-forecast-a-move-to-400p-possible/
Boohoo share price is up by more than 2% day as investors react to the new lockdowns in the United Kingdom. The shares have fallen by more than 3% from last week’s high of 352p.
What happened: Boohoo is one of the fastest-growing clothing company in the United Kingdom. It specializes in online shopping, where it owns brands like Nasty Gal, Karen Millen, PrettyLittleThing, and BoohooMAN.
Boohoo has been in the spotlight recently after allegations of the poor working conditions of its contractors. This led the share price to drop as the company launched an investigation into the allegations. In all, the company has hired a new auditor and committed to improving its processes.
Boohoo growth: Boohoo has been a growth machine over the years. For example, its earnings per share in 2015 was 1.1p. In the same period in 2019, the performance had soared to 6.02p. Subsequently, the Boohoo share price has jumped by more than 672% in the past five years. That makes it one of the best performers in the country. This growth has happened as more people have shifted to fast-fashion.
In its most recent report, the company said that its sales remained steady in the first six months to August. Total revenue rose by 45% to £816 million while its net profit increased by 51% to £68.1 million. And analysts expect the performance to continue due to the recent holiday shopping. It also sold shares worth more than 198 million pounds to acquire other companies.
Boohoo share price outlook
On the daily chart, we see that Boohoo share price has been on an overall bullish trend. It is slightly below the 23.6% Fibonacci retracement level and above the 50-day and 100-day exponential moving averages. It has also formed a bullish flag pattern, which means that the stock will possibly continue rising as bulls aim for the next resistance at 400p, which is a 15% increase from the current level.
Phone lines jammed. MMs only pricing NMS (normal market size) online, needed to break the order up into smaller chunks
https://pbs.twimg.com/media/Eq9RsrjXUAAzPFG?format=jpg&name=medium
Anyone else facing difficulties in getting online quotes to BUY BOO?
The Guardian: UK high streets empty on Boxing Day as shoppers stay at home.
https://www.theguardian.com/business/2020/dec/27/uk-high-streets-empty-on-boxing-day-as-shoppers-stay-at-home
https://foragerfunds.com/news/esg-concerns-the-making-of-boohoo/
Well, it’s now one of the top ten holdings in the Forager International Shares Fund and I think it can be a great investment. Like a talented teenager making her first life blunder, Boohoo can use the experience of 2020 as a wake up call. Not only can that be good for shareholders, it can also be good for the entire UK manufacturing industry.
We’ve watched most of this saga from afar. The share price has continued to fall. But, in our opinion, the company has made commendable changes to its business model. It has grown quickly and, like lots of successful young companies, has learned that with success comes responsibility.
Our recent investment is because it seems to have learned that lesson well. Not only can Boohoo be a wonderful financial investment, but a good corporate citizen too.
https://www.drapersonline.com/news/a-very-sad-day-for-retail-as-arcadia-group-collapses?tkn=1
Several sources agreed Boohoo Group is likely to be keen to “snap up” Topshop/Topman.
“Topshop is still a great brand, and it wouldn’t be difficult to revive”, a fourth Arcadia Group supplier said. “If Boohoo Group does manage to buy Topman/Topshop then it will be a massive coup for them, especially as [Boohoo Group CEO] John Lyttle previously worked for Arcadia [as a senior buying director], he knows them inside out. It would also give Boohoo Group the added demographic it needs to add to the ‘glam girl/alpha male’ mix”.
He added: “I could also see Boohoo Group being interested in a few profitable stores. The Oxford Circus store with a mix of with Boohoo and PrettyLittleThing along with Topshop, Topman and Miss Selfridges would be quite a draw for even the most ardent of online shoppers. Asos I suspect will be looking over its shoulder at all of this as this could fast track Boohoo and threaten their crown - not to mention Topshop and Topman are very strong on Asos”.
GlobalData’s Collins agreed: “Topman would really boost its menswear offer, which has always lagged behind Boohoo’s women’s brands, and Topshop could benefit massively from Boohoo’s social media prowess and influencer relationships.”
Liam Patterson, founder and CEO at online shopping expert Bidnamic, told Drapers The Hut Group, which launched an IPO this month, could be another possible suitor: “It wouldn't be a shock if Boohoo Group and The Hut Group placed a bid for Topshop/Topman as the brand has a similar appeal to their own. Both companies also have the resources for such an acquisition after amassing huge war chests following IPOs and increased demand online during lockdown.”
Retail analyst Richard Hyman said Topshop and Topman would be “worth more” to Boohoo Group than any other buyer.
“Boohoo Group has a tried and tested model for taking on brands and injecting them into its existing online infrastructure in the way that Frasers Group cannot do. The brands don’t really fit in with Mike Ashley’s Sports Direct brand mix”.
https://twitter.com/UmarKamani/status/1332450553448771585?s=19
Repost from a previous message.