Member Info for Archy147

You were right, the spread on ii was down to 39.15 - 39.90 which is a hell of a lot better than the 39-42p it was 2 days ago!

So I'm pleased to report I've joined you here now. Hope it goes as well as KMK has so far :-)

peter, funny thing is I read a similar article on Motley Fool a few weeks back, which suggested CCC and SCT would be good investments to take advantage of the so-called working from home boom. So I bought both.

Since then?

CCC up 12%
SCT down 16%

I can only put this down to the fact SCT was at the time trading at a significantly higher multiple and maybe the subsequent movement has been a ‘correction’ to close the gap between the two? As things stand (using Hargreaves Lansdown calculations, which I always do), SCT still has a higher PE of 33 compared to CCC 26

Well gents I thought I’d give PTRO a go today on the basis of Surprised’s recommendation.

The price on google was/is stated at 39.25p, I went into my SIPP and clicked on the “buy” button. The buy price came up as 41.94p. Wasn’t having that, so tried again a bit later. The price quoted then was 41.75p.

This may be great buy, but seriously I’m struggling to get past the fact the MMs are taking the **** with this spread.....I just couldn’t bring myself to do it!

Thank you surprised, and chas, for your responses :)

I was pottering around these boards at the weekend, and someone said it was a good idea to check out surprised on the AIR board, so I did, and that’s what let me to the interview, the ‘surprised trader’ Twitter page and to here.

Interestingly, I see surprised you’re in NEX, REDD and CAML, which are also 3 of my holdings. I also toyed with CWR a couple of years ago but never took the plunge, obviously wish I had now!

I’ve tonight created a twitter account for the first time (!) and have started following surprised so I shouldn’t miss out on new tips like KMK today (which looks like exactly the sort of beaten-down stock I like buying) . Thank you in advance for the insights fella: with the help of the new twitter account, I’ll defo be following your tips closely from now on. :)

Ps Surprised I listened to one of your interviews the other day, which was interesting. I much enjoyed hearing your thoughts :)

On it you said a few times, as soon as you hit the "buy" button you're entering a vipers nest in which everyone wants a piece of your money. Well here we're giving away c10% of what we invest straight away to the MMs! As much as i might like the company, it just doesn't sit well with me to be giving 10% away to the vipers the instant i buy in!

This looks like a decent punt, but you need a 10% gain just to clear the spread + trading costs FFS

Does such a large spread not bother you surprised?

Thanks for the response schjmh.

This market makes little sense to me, but do see UK tech stocks generally seem to be out of favour this week. BOO and CCC (two of my other holdings) also down today, as well as ASOS and IQE, at a time that the wider market has done well.

Anyway, if the MMs want sellers they’d better look elsewhere. No chance am I selling this while it sits at a lower valuation that the start of the year! Fingers crossed we’ll see some upwards momentum again as results draw closer!

Guys

Somewhat puzzled here. After buyng at over 1300p, this is now one of the biggest dogs in my portfolio. What is going on!

We've had all this hype about (US) tech stocks going through the roof, Covid accelerating trends towards online, and vast numbers of people workiing from home who never were before and the end result? Softcat is trading lower than it was at the start of the year?!

OK, I get they've been trading on a high multiple, but given all the tailwinds how can they possibly be considered to be worth less than they were in Jan/Feb before the pandemic struck? Confused.

And the rising confidence continues!

Kicking myself now as I top-sliced at 127p last week, thinking surely we'll see a short-term pullback before any further gains. No such pullback has materialised......maybe the market has finally cottoned on to the fact this is indeed an undervalued gem?

Guys, I wouldn't read too much into the rise today, the whole market is up. Except Cineworld that is lol.

I agree though jolly, this is an interesting recovery play. I bought in last week..looks like a LOT of upside potential here

Gentlemen

One or 2 of you may recall I posted the day before results, saying it often doesn't matter how good results are people sell into them and share prices go down when results are published. Because of this widely-observed effect I top sliced prior to results. I was persuaded not to sell the lot becasue, longer term, the prospects for BOO remain very strong.
I'm obviously dsappointed the price has gone down and I didn't sell the lot, but looking at the bigger picture, this sp now looks like a great opportunity.

The day I mark in as "The last day before COVID hit the marjets" is Friday 21st February. It was afer that day that the carnage started.

But here's the thing: that carnage did NOT apply to BOOHOO, in fact it has had the oposite affect. Their sales have recived a massive boost as they've taken away more and more market share from the high street. Other tech companies (especially across the pond) have seen their stocks rocket through the pandemic. But where is BOO? Well since Feb 21st we've risen c20p, less than 10%. That <10% rise goes NOWHERE NEAR reflecting the massive growth in sales just confirmed in the trading update.

This screams out to me as a buy/top up at this price. GLA

Also in the same boat!

I too too thought this a “safer” recovery bet than the airlines but sadly it doesn’t seem to have fared much better :(

You may want to take a look at MNZS, which I consider to be similar. Not an airline so unlikely to go bust, but heavily affected by the air industry. That one hasn’t recovered either and still has potential to 3 bag when the recovery eventually does come.

Hmmm indeed!

Is it time to sell out here? Never good to have something like this hanging over a company...

I’ve also read the twitter feed from Shadowfall

Most of it is still harping on about the Leicester incident - how much did they profit from underpaid workers etc - Very boring and completely misses the point that that is fast becoming ancient history.

The one thing that does get me questioning is their point 7/

7. What do you estimate will be the value of the claim being pursued by a class action in the US in relation to alleged “false and deceptive” advertising practices? Was this legal claim identified to any investors ahead of the placing in May 2020? If not, why not?

Anybody know any more about this? It doesn’t SOUND like anything serious, but would be good to know more, just in case it could materialise into something material?

Thanks all for the responses. Chrishbar, I particularly like your point about the outlook for Boohoo being better now that it was end June and Xmas coming etc. Those are good reasons to hold. Cheers

Gentlemen,

I have been in here since 220p in July and cheering it all the way up, like most here.

Now they’ve made it back up to just a but lower than their all-time high from late June/early July.

Is there not now a risk that anything other than superb results will result in a pullback on Wednesday. So often I hear about share prices rising up to results day then dropping on the day itself. There must be a significant risk of that happening here?

I’m on the fence here, have sold 1/3 of my holding at 380p, now wondering if I should be slicing more tomorrow. Grateful for any thoughts.

Ps Motley fool have unanimously been behind Boohoo the last 3 months so interesting to now see one of their contributors taking a bearish stance...

Ha you’re not the only one thinking that.

The market seems to be pricing in a huge discount for the risk they won’t be able to refinance. Common sense tells me this really won’t be a problem, it’s little more than a formality, but the market doesn’t seem to be seeing it that way.

If I wasn’t already heavily invested I’d be piling in here. The risk/reward ratio makes the current price look ridiculously good value IMO (unless I’ve missed something the rest of the market is seeing).

Well the way the markets going you’d think they had little chance of refinancing.

In 2 weeks IPF since their last (very positive) update the SP has lost 35%, yes 35%.

Has there been any bad news that has driven the carnage, well i can’t find anything, certainly nothing company-specific. Bonkers.

That’s good news. How on earth then has this dropped down to 51p ?!

I have no idea but I hope you’re right!

Fingers crossed and GLA