Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
https://www.boohoo.com/camo-reflective-longline-puffer/MZZ27230.html
cont.....
The next trading update could be good, because we have Black Friday tomorrow, a major boost for online retailers in particular since their physical competitors on the High Street are currently shut.
It should be interesting to see what happens next. I think this is a seriously good risk:reward situation now. But obviously, DYOR as usual.
I wonder how long the UK press will keep trying to re-hash the supply chain problems? They’ve been dining out on this story for a couple of years now. Will any start reporting the fact that, actually the company has responded very positively, and extensively, to fixing these issues? I wouldn’t bet on it.
As you may know Paul Scott is a renowned investor who writes articles for Stockopedia.
Here is what he has to say on BOO
Boohoo (LON:BOO)
(I hold)
295p (up c.2%) - mkt cap £3.7bn
There's another step in the right direction to improve its supply chain, from this fast fashion business with 9 brands. It provides an update today on its “Agenda for Change”. To summarise;
• Sir Brian Leveson PC has been appointed to provide independent oversight into BOO’s supply chain changes - Leveson is a major figure in the legal profession. For anyone not familiar with his background, take a look at this article. Therefore this is quite a coup for BOO
• Leveson will report to BOO’s Board, and his reports will be published - top marks for transparency
• Leveson has appointed a legal, and independent enquiry & enforcement team - so this has teeth, it’s not just a window-dressing exercise
• The aim is to ensure that - "everyone associated with the Group's supply chain is treated fully in accordance with the law and the principles of ethical trading."
• KPMG also appointed to assist with improving the supply chain - working with 2 existing supply chain auditors, Bureau Veritas, and Verisio
• Chairman confirms he is onside with the Agenda for Change programme. It’s good that he’s stopped defending previous practices, and has moved with the times. I see this as part of the process of growing pains from a small family business, to a large global business.
My view - I think there’s a tremendous opportunity with this share. It’s a fantastic growth business, delivering superb financial performance. Yet the valuation is way below other similar growth companies. Look at $FTCH for example. Listed on the US market, it has similar revenues & growth to BOO, yet it loses money hand over fist! Whereas BOO is strongly profitable, but is only valued at a quarter of FarFetch. It’s a glaring anomaly. I’ve suggested to BOO that it lists in America, where the valuation would be so much higher than on AIM.
That’s one opportunity for a big re-rating. The other opportunity, is that the ESG fund managers who’ve been selling up over the supply chain issues, are likely, at some point (no idea when) to recognise that BOO is doing everything humanly possible to fix the problems, with total transparency, and considerable resources being used - I know KPMG are not cheap, and imagine that Lord Leveson’s hourly rate is not likely to be modest! Therefore, I can foresee all those forced sellers becoming keen to buy back in at some point, probably at a much higher price. Combine that with short sellers being forced buyers, and it's a recipe for a big & sustained move up in share price.
Hence this looks to me like a really terrific opportunity for private investors to get ahead of the curve. I’ve been buying more, and as mentioned before, it’s my largest personal holding.
tbc.....
On a number of occasions Paul has stated that when he hopes to sell off arms of the business they will be sold at industry market rates. This insinuates that he is not concerned with the share price in the short term as he knows his end game. Once the viability of each business unit is confirmed they will be valued and sold off. You've got to be in this until the end to get the true value.
Muckle...I don't think we will see sub 3 again unless morocco is a dud and even then the other projects will prop up the share price. There is certainly more optimism now with regards to being able to drill than there has been for the last 4-5 months.
Stay positive and GL
Afternoon All,
PRD got added to the Trading 212 mobile app platform today.
If you didn't know Trading 212 is a extremely popular smart phone app which a lot of younger investors use to trade shares.
Cant be a bad thing.
Onwards and upwards.
https://www.golarlngpartners.com/what-we-do
Interesting read.
Even a small influx of PI's will have an impact on this share. I wont go into details but there are plenty of Twitter 'smallcap gurus' who have a large following. If one of these was to highlight PRD it would be good news.
This is spot on. The 'herd' so to speak are on twitter and other social media platforms. This is where free promotion is golden if you get it right.
Amigo Loans was trending a few weeks back and that is a Dog of a company.
We need some traction like this via Twitter ect....