Member Info for BrokeNSmoke

Yeah seems that way, mostly carnage all round. I think the market was tentatively expecting the end of the US rate rises based on the low CPI but has had a rude awaking by the Fed making these noises. I know Powell said there would be further raises, but I think the market took that more as a contingency rather than a commitment.

'Looks like global markets are all well down today.

Interest rates and inflation still scaring off investors.'

Revenue and YoY growth looked pretty good to me. Time will tell I guess.

Wolf - here's hoping! The sooner the US warehouse opens the better imo.

I have trimmed a bit on tech with recent rises with the exception of PayPal which I think is still a little undervalued. If it's just a dead cat bounce I will likely buy back in some of those positions

PP1 - on the UK side we will most likely get further rises, the only way I can't see this happening is if they think they are about to fully tank the economy :(

The US is a bit of an unknown since the CPU data has repeatedly been encouraging, and truflation dropped very low in June which is indicative that it is going the right way. Guess it will depend on that core inflation figure for what the Fed does. Regardless I have been more bullish on my US stocks of late.

i was going to post earlier and saw the **** storm brewing here and thought nah, hours later it is still raging.

the most likely reason the rcf was taken was as a contingency. it makes sense having some kind of overdraft facility in place to avoid a temporary cash shortage. if boo was seriously short they could just sell some of their investment, but it does t make sense to disrupt important long term goals for short term issues.

it implies that there have been disruption s to boo's model abd it's not a positive thing in any way possible, but it's not as bad as y'all are making out to be.

Gaz - Profit and cash are different. Profitability and liquidity respectively.

BOOs 2022 profitability performance - very poor

BOOs 20022 liquid position - worse than prior but still very strong

I hope this helps

T4G - fair enough, I was thinking in terms of acquisition but I think it was because PP1 asked and it comes back round to our discussion on why net assets are a poor company valuation method.

Fair point re Misguided. Personally I have been basing my company asset strengths more towards the brands as I think there is a ton of value there. Point taken though. Cheers.

DayTrade - on my post to Hexham I wasn't referring to you, I was referring to the ones that spam doom/ end of days type posts constantly. I have a similar opinion of the rampers like that too to be fair.

Thank you for taking the time to respond. I wasn't singling you out, I would of asked one of the troll spammers but doubtful that I would of gotten a decent response

DayTrade - thanks I appreciate the response

T4G - I don't have much experience in B2C customer base type acquisitions, but £10 per customer is quite surprising. I personally think the brands would sell for far more than the data & infrastructure but this is pure speculation on my part.

Hex - I would argue some of those additional risks are just the risks of investing in the first place, but I take your point on additional risk.

Unfortunately it is becoming very tribal here. I would much prefer reasoned takes from both sides but

PP1 - All the brands that BOO owns

Hexam - I think most of us can agree the board has gone to the dogs. I don't mind DayTrade and Jongle despite rarely adding much of value and I have seen DC make some calls that I agreed with. The latest wave of the likes of Pedro and Dogger previously is just awful, a constant slew of fear and nonsense.

I would disagree on that second point though, I feel like the worst derampers are just as bad as they try to spread fear and get people to panic sell.

Agreed - both SP calls are silly but £6.50 is just delusional.

DayTrade - Serious question here, but before your investment in BOO @ 41p why did you spend so much time on this board? Not saying uninvested aren't allowed an opinion but I just don't why some have spent such large amounts of time when not investment.

Oke – I agree with the analysis and I don’t think the EBITA speculations are out of bounds given all the cost headwinds easing. I think the bears have a decent point in that BOO mandating the cost reductions to push their COGS down won’t be a popular one with suppliers, but I do think it will achieve its goal.

As inflation is cooling in the US the Fed will eventually have to reduce rates and likely we will see retail pick up. It would be excellent if this was to coincide with the warehouse opening, which could be a bit of good news for us.

I personally have no idea what the SP will be as it is so bloody volatile and the lack of any dividend means it will be mostly dependant on the market’s sentiment to the company and wider macro trading environment! The later will eventual improve though at least.

I agree that the zero debt is nice. The balance sheet strength and IP portfolio is what reassures me in their position. Hopefully we are right :)

GL to you!

PP1 – ok I didn’t realise it was in response to that but thank you as it was a genuine question. I think there was a degree of speculation in the 2019 around continued growth but I don’t think the removal of said growth speculation justifies such a poor valuation now. I think even without such huge growth speculation, if BOO can sort profitability out then I think the deserve a much higher valuation.

Also I think it would be silly to ignore Shein as a factor, but I don’t think the fashion market is purely a cost-driven zero sum game, otherwise more expensive brands wouldn’t sell. My personal opinion is BOO has some good IP under its belt which it should be able to leverage for a decent EPS, even if the growth is gone, which isn’t a given.

It will be interesting to see if these cheap Chinese apps are here to stay or whether we will get over saturated and fatigued with them. Or if any political/social develops happen that make buying from them less desirable.

PP1 - Can you please explain why you don't think this will ever reach Feb-19 levels again?

Note that we are currently at 2015 levels of share valuation when we also had a negative EPS. but, revenue was a fraction of what it is now - around 150-200m, net assets were 66m and the IP owned was significantly less. Shares in circulation have also not significantly changed in that period either approx 13% additional shares in circulation since then, so minimal share dilution. My point being is that the share of the company that investors owned at that point of time was significantly smaller than it is now and that year had negative EPS.

Is BOO can manage to return to profitability, then this share could reach the 2019 levels. I don't think the COVID highs will ever be reached again, but that was an exceptional trading environment.

'Https://uk.investing.com/equities/boohoo-historical-data

Sadly, won't go back to February 2019. Worth having a look at this anyway.'

'Like your posts, well balanced'

Careful you lot, we are in danger of having meaningful discussion on this board!

I doubt it will have that much reputational damage as one needs a decent reputation in the first place in order for it to be ruined. For whatever reason the media has constantly attacked BOO in the last few years, sometimes justified, sometimes not. If BOO get their way, I think from a company standpoint the end will justify the means.

Just for clarity I don't like all this hostile takeover stuff either.

I noticed BOO was quoted saying: 'fails to see how such a board can claim to be acting in the best interests of shareholders, and is instead self-serving'

Which is incredibly rich isn't it