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Nice to see management moving the goal posts to ensure they still get financially compensated even when the share price and company financials tank. They should be getting 25% of their bonus as per the targets previously set. They've uplifted it to 75%.
And wait to 2023 to see how much they lower the MIP targets. Guarentee it will be alot lower than the £7bn market cap valuation it currently is.
Hi all,
Just curious to see what everyone's predictions are for earnings release next week? We obviously have a good idea about the figures, but I'm worried they may lower future guidance. Alot of companies have been doing this during their financial results this week (eg Amazon highlighting consumer slowdown and cost pressures).
Hopefully this is all baked into the Boo stock anyway, and some positive news (potentially accelerating the opening of the US distribution centre?!) would send the price higher.
I think so, as the December update didn't take into account the situation in Ukraine and fuel prices rising so much. Makes sense that's our delivery costs will go up. My hope, and original question, is that Debenhams sales are higher margins that can offset any short term margin compression from our fashion businesses.
As we all know, Trading Update tomorrow...
With Boohoos margins getting squeezed, and the soaring price of oil / gas likely to affect this further, does anyone have any idea how the Debenhams acquisition will affect margins? Fast fashion works on tight margins, but this could be improved if Debenhams more luxury items command higher margins?! For example, I read somewhere that perfumes can command margins upto 90%! This could counter some of the margin compression we're currently seeing and expect to see on the fashion business.
Lol calm down. Everyone has different opinions.
And it doesn't matter how much they own, if it was such a bargain, they'd buy more.
To be clear, I have shares, and I think long term this will be a great investment for anyone invested. But short term, it will likely remain volatile. I'll just keep buying to get my DCA down.
Don't think we should be getting to excited today. Stocks always seem to rebound a little the day after a big fall.
I'm not trying to talk down the stock. I own shares at £1.80 average. Will get that average down when the new financial year allows me to add to my ISA.
However, I think the lack of director buys says alot. It wouldn't surprise me if the next trading update disappoints. Surely the directors would be buying at these prices otherwise?!
Tbh, doesn't really matter to me. I'm hold for 10+ years.
Just thought I’d throw my 2cents into the mix as there seems to be a lot of extreme views on this board.
My strategy is to invest in companies for the long term that I believe can outperform the market.
Here’s how I evaluate my investment into Boohoo….
My average cost price is 185p.
I apply fairly conservative assumptions over a 10 year period and apply what I consider a conservative multiple.
I have assumed revenue growth of 25% for the next 3 years (hits the £4bn Rev in year 4), then 17.5% in years 4 to 7 and then 10% in years 8 to 10.
I have assumed the company continues to issue shares at a rate of 1% a year. This is important to calculate the EPS.
I have assumed a 5% margin and a 20x P/E ratio.
This gives me a company valuation of £8.87bn in 10 years time.
This equates to an ROI of 13% on my investment for the next 10 years.
There are obviously challenges in the short term and my investment thesis could be completely wrong, but I believe in the increasing shift to buying online and I like how Boohoo are targeting and expanding into new markets.
If Boohoo margins decline to 3% over the next 10 years, I still see a 10% ROI.
If the share price goes lower, and it certainly could, then my project returns increase, so my plan is to DCA lower.
DYOR and ignore the regular posters. Invest using a process rather than hype.
Good luck all.