Member Info for danl90

I just think it’s selfish to take from the insights on the board but you won’t tell us why it’s undervalued

You’ve just given more clue that you have a target valuation (although earlier today it was impossible to value) as “some buy have been high and some crazy low”

So go on tell us! We need this informative scoop

Or is it really “was £4 so I’m praying for that”

@ian

“Welcome to the roulette table sir”

Too cheap. You’re better than that!

Rag still struggling with yesterday’s satire and keeps quoting it!

“Some buys a bit high and some crazy lows”

How do you work that out? Just subtract from £4?

I thought I’d be discreet but you’ve managed to work out that TCM and I are banker 1 and banker 2!

Oh well at least you can see why VPs at Morgan get £300k salaries and 100% bonuses

@P

All that is fine absolutely that's all credible and agreeable but that isn't what rag has been doing he's just saying "it's undervalued" so he must have an idea why and what the value is

If it's just a punt then fine he should just say that but he isn't

March dip - again fine you can invest on sentiment a few replied with this and this works for the slave labour point (that was actually my entry as I felt the stock oversold and customers wouldn't leave as funds feared) so if the revenues stayed up or grew which I felt they would as customers wouldn't leave I could justify the undervalue ie the pe fell off a cliff and i still thought earnings growth would follow and the equity story remained in tact

All the above is credible but just claiming its "undervalued" but having no idea what creates value or what makes one business worth another puts you in a difficult spot to claim it's undervalued or he was in on that Morgan Stanley meeting. I mean rag even said today he hopes we drop to a more normal multiple - our shares would be worth about £1!

Banker 1 - "what you think about boohoo? I've got a feeling its going up!"
Banker 2 - "oh yeah, strong feeling?"

Banker 1 - "yeah, feeling really good about it"
Banker 2 - "good, well is the price good and are we comfortable on the business?"

Banker 1 - "yeah I've had a proper kick of the tyres and well the shares used to be £4 and they are now £2.50 so I reckon that's good"
Banker 2 - "seems like a home run! I mean if they used to be £4 then obviously we are printing money at £2.50" "what shall we present to the investment committee?"

Banker 1 " well I've got a graph that shows the shares are down on the £4 also I just know that kids like this stuff"
Banker 2 - "might want to cut the deck down we don't want too much detail"

Investment committee - "well done lads nailed it. We are confident this is worth chucking £100's of million at. We feel the graph is pretty compelling and well you guys do say the feeling is strong. Also knowing that kids like this stuff is valuable insight"

*they all go home after another hard days work*

whoever knows why there are 1000's of people in those towers in Canary Wharf

@Bang imagine if investing was just as easy as going "was £4 i reckon it will be £4 again" and that's all there was to it

You'd all be rich men :) although you aren't so maybe theres a reason why the suits in the city are?

Or maybe they just "hope harder"

Breaking news - Morgan stanley buy 6% of boohoo on hope! It's funny how you all see a big investor buy and say "must be doing their due diligence" ok well what do you think that actually is?

@bruce nah sod the p/e just start banging all odd bits of revenue in! And sack management. they are expensive why do we need them? We don't need a strategy or a plan just bang stuff together

@Mr Nautral - correct you're the first person who could answer why x32 isn't a concern. No one else could or tried to

Today the P/e ratio is x32 or whatever (probs higher that was my calc from last week). So yeah if you buy today you're paying 32 year profits. as you say in 2017 when you bought the p/e figures would be completely different. I was just using today's share price as the example as i don't know anyone in price. But everyone keeps saying its undervalued so on x32 pe why do they think that as that's where we stand today

So i was wondering if anyone can explain why these shares have upside given you're paying away 32 years of profit (should you buy today) - *rag steps in to answer*

Sentiment has driven valuations higher than those seen historically but fundamentals are skill operating hence why a construction business is worth less than a fast fashion retailer which is growing at 40%

We are largely seeing the market extend as a result of low interest rates and tonnes of fed printing money - heres a song a think is quite funny (those who are just playing the casino might not understand the jokes in it)

https://www.youtube.com/watch?v=Ro7lrA781To

@faith are you just another one who thinks investing is just hoping "up to £4 by christmas" or do you have any useful insight into value?

What would be your view keep wholesale revenue or not?

There's a seat at the roulette table for you too

Just praying boo hits £4

Not sure if it will not sure if it won't - just pray!

Fine but try and answer one of them. So shall we all just comment "up to £4 before Christmas"

I'm not trying to have the last word I just would like rag to say how he knew they were undervalued (so he bought some) yet he hasn't an idea what the value should be

I'm not saying I'm so clever I'm asking others to tell me their thoughts

I've said quite clearly what I think will drive the price and it isn't diluting half of our business into wholesale

Rag says itis impossible to know so how did he know when to buy? How did you know when to buy? was it jsut because it had been £4 and when you bought it was £2.50? Fine if so but that's gambling and not investing

So you're just playing in a casino? ha

What I'm asking is why did you think you'd be able to sell it at a higher price. It would be nice if rag could explain that and also why he isn't selling today given you have to pay out 32 years of profit at today's level

All the things I am saying and numbers I am comparing is what funds both for listed and private businesses you can ignore it as drivel or you learn "what morgan stanley might be looking at when they add their position" that might also help you get out before they do as when they unwind their 6% the price will fall

You need to be aware of the value drivers and equity story otherwise just go to the casino you double your money on red or black and the odd are 50:50. Atm with boo you might go from £3 to £4 (up 33%) but you've paid out 33:1

The odds are worse than roulette and the payout is lower

Question for you (Thunder, rag and oil)

How would you value a business that wasn't listed? What do you think investors there look at? What is it you think these teams of private equity firms do? Just a "feeling" of sentiment and throw millions in?

What do you think all these industries do? and how do they monitor value?

@oil ok that's fair but do you worth that atm if you bought today you'd be sensible paying someone 32 years worth of future profits? Because that's the reality so yeah next yeah might be good but what about the next 31 years you have just paid for?

I mean what is it you think all these huge funds look at when they invest and why they sit with management discussing the business and KPIs?

To pass the time? funds just due the same as rag and say "now £2 was £4 must be undervalued, chuck £200m of pension money in"

There isn't one apparently

The share is now £3.20 it was £4 therefore it must go up.
Management tracking KPIs = waste of time
Investment in platform = waste of time
Maintaining industry leading margins = waste of time

Just buy revenue from anywhere tbh. Smash the lot together

There is no reason at all why a £1 of profit in boo is worth £32 and £1 of profit to others is worth £8 to £12. It's literally just alchemy