I’m getting really tempted to sell out now after yet another “revelation” in the news today. I’ve ridden this share up from just below 300p but I just feel as the media are being so relentless it’s only a matter of time until something is found and reported that savages the SP. I know this might not happen but they’re dredging the very bottom to find anything they can use against them at the minute. I know it’ll be bad for leister but I genuinely think the BOD need to move as much production oversees as possible to avoid these problems in the future.
Fair enough... warehouse and oasis didn’t exactly fit the bill before they bought them either though, but they seem to have made it work... nothing wrong with having different brands targeting different consumers.
I wonder if the BOD would be interested in parts of the business if pea****s goes under. Pea****s probably not, but Edinburgh woollen mill might be a good buy. Part of their problem at the minute is older people won’t go out to shop. So if they put EWM online they may tap into that demographic long term if the online habits stick.
Another national lockdown being discussed now. With pubs and restaurants potentially closed. Can see that lighting a fire under the SP if it happens. Plus Hovis news, ftse250 upgrade and moving into our sales strong period over the winter. Plenty to keep the momentum going.
In my opinion I would expect the SP to be savaged. By the time you could do anything about it the price would make it not worth selling at such a loss. So I would hold on, maybe try average down when i thought it was near its lowest and then try forget about them for about 2 years. In that time they will have been crucified by the media, turned themselves around, built their new factory and hopefully come back stronger. It’s important to remember there’s very few companies that won’t be caught up in some controversy at some point. Just look at Rio recently blowing up historical sites.
Probably just consolidation from the massive rise from 25p. Can't go up in a straight line. It's actually bang on the lower trend line from the rise from March so it'll be interesting to see if it bounces up or breaks below...
I’m inclined to agree that at these levels travel stocks are tempting to buy and not look for a year and you’d hopefully make some tidy profit but... everyone keeps saying and assuming next year will be either significantly better or completely normal, when that pivots entirely on there being a vaccine or the virus fizzling out. Both of which are definitely not guaranteed to happen.
Hi all, just wondering if anyone has any concerns like I do about an online tax being introduced. Everyone knows the high street is being hammered at the minute and Covid has just sped up its decline. Every day the calls are getting louder for the government to “level the playing field” by introducing taxes for online and I’m not convinced it’s something they wouldn’t do. This would be bad for BOO at least initially, as it either means margins decline or prices go up making their products less appealing.
Hi all, don’t have any holdings here but have in the past. My question is has anyone thought seriously about how they are going to pay their debt down after this is over (if it’s ever over). Market screener have their debt predicted as 4.7B at the end of this financial year. That’s a huge amount compared to the approx 1B last year. I’ve seen some comments about a rights issue, is this definitely happening?
Just look at kingfisher today to see how SP’s are reacting to confirmation of what the market already thought. I really don’t think anyone will have seen sales like Boo will have this year. It’s going to be like having your cake and eating it... online explosion due to all high street shops being shut then massive sales when people want a new outfit now we’re allowed out and about!
There's no way any of this is going to have any long term effects on BOOHOO, if there was something critically wrong the visits by the enforcement bodies would have resulted in fines/closures instantly. As it is nothing has come of it, BOO have done the right thing and instantly stopped working with anyone they think is in the wrong and are having a full independent inquiry carried out. Now i don't know about any of you but if i thought i had even the tiniest thing to hide i wouldn't invite it to be found out in an inquiry. Cheap and cheerful clothes, brought online and on trend will always win out. The vast majority of the people that shop with BOO don't even read the BBC news let alone the guardian or FT so the impact from "bad publicity" will be very small. People just want fashionable clothes at low prices. As they say money talks and bull**** takes the bus. Covid has accelerated the growth of this company by probably 3-5 years and has brought the death of the high street forward by the same amount.
There's no way this will harm Boohoo long term. Perfectly possible it'll drop further or it might bounce back 50% in a day before you know it. I am fairly young and everyone I know that uses the brand isn't going to stop because of this myself included. Of course they should get to the bottom of this and put in place any new measures needed even if it does result in less profit. Because at the end of the day it wont matter, online shopping has exploded because of Covid with pre-lockdown high street footfall never likely to get back to what it was. Couple that with plenty of cash for expansion/takeovers to increase revenues/profits over time, and millions of young people that have not been allowed out to clubs/parties making up for lost time and the results will speak for themselves within no time. AIMO obvs.