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There is no doubt that the market reaction is overdone.. The impact on cost and revenue is not going to be worth the 50% of sp that it has lost..
So with sound company, and greedy bosses, it’s only a matter of time that this thing start flying again..
Don’t forget the saying people: Don’t follow what you hear or people say.. Follow the big money...
And big money has gone in yesterday, a demonstration of huge vote of confidence..
The point is not where it would have gone.. the point is founders are putting their own cash in business and that oozes confidence in the company and send out a clear signal to the market.. they don’t care about few pence difference if it went sub £2.
https://www.londonstockexchange.com/stock/BOO/boohoo-group-plc/company-page?lang=en
Real closing price is 235.10 (bid) - 235.60 (offer)..
Purchase of 5m + 2m + 50k shares by the directors oozes confidence...
They know that this thing is temporary.. it would fly once dust settles. Look at Glencore few years back when everyone turned against it and directors bought tons and tons.. In no time it went from sub £1 to nearly £4... And timing for boohoo to thrive has never been better, economically.. I am holding all the way to £5....
Broke the hunch and level and finished well above that...
As i said earlier, happy to be proven wrong but so far holding exceptionally well. Someone said 2.20.. Sure it may retest that but be careful as the boat may sail.
if you wait for few pence drop, you may end up losing pounds worth of gain....
Remember this,
Its only a paper loss. You will double or even triple your money here.. Look at what happened to Ocados for instance (online only). This is set to thrive, treat this as a hiccup..
Your wages would deliver good return and then you would think, of your salary was double or triple.. All in couple of years at the latest imo.
Its funny how, competitors play the corporate games here.
Bohoo's (notable) competitor who were in news at the start of the pandemic for all the wrong reasons for keeping their factory open now says they are cutting ties and suing Leicester based suppliers. They also used the timing to say that they are giving government the furloughed money back.. Only to try and get ahead but Boohoo;s in much faster lane towards claiming that top spot in the online fashion industry.
only matter on time pps....
Hunch 2.27 close for sure now.
Jokes apart.. although i do think the sp would be around 227 today cop, its a just a drop in the ocean.
Anyone who knows the market, the company has become an online giant for a reason, surpassing likes of boohoo and next in the process in just a short amount of time from their inception... The only company to have a firepower to go on buying spree during such an uncertain economic times..
If you look at the history of big listed firms, they all have had a slippage at some stage during their early years and they were hammered only to roar even higher like a lion when the pain was behind them.
If you are confused, let me put it in Lehman's terms. Boohoo is too big to fail NOW... if this incident happened couple of years ago they would have had a difficult time rising back up... But they control huge market now so people in position of power (such as influential IIs, Investment banks/brokers, and other independent bodies etc) would bash the share through doomed headlines/articles and it would have negative impact on boohoo's SP for short while as well, so they could take advantage of. Its a all a stage....... (As the shakespeare's stated : 'All the world's a stage)
The same people would in 6 months start to re-rate the firm and pump the price to make huge return for themselves and their investors.. Its happens all the time. Don't follow the news, follow what the big money is doing.. Boohoo only had their 6th largest investor pull out, the rest (top 5) have either stayed the same or increased their holding.
Boohoo will come back roaring like a lion, in this pandemic.. they are well positioned for that.
Only my opinion, not to be taken as advise.