Member Info for danl90

"The Private Equity deal makers in pharma/biotech that I know personally are all doctors or doctorates" well exactly because those "businesses" are usually pre-revenue and more concepts

They don't require financial understanding as such. In that type they are betting if a drug will or won't work. The same a PE firm which is engaged with funding people to find oil is better placed with geologic rather than someone with a understanding of financial engineering

"Primarybid is one of them."

OK so who figures out the value at which investors will buy and gymshark will sell?

""That insight came direct to asos."
You are wrong everyone knows this
Every retailer knows people are searching for floral dresses even those without an app."

no they were typing it direct into the asos app or asos website. Only asos would see that

Plus you've ignired the other point which is arguably the most important which is that asos/ boohoo have the speed and agility and logistics to then get this trend out before others have had the chance to see it

The insight was direct to asos and they execute. Everyone else then picks up on it when they see flower dresses on socials or slower less fashion engaged shoppers as you say put it in google

https://news.sky.com/story/gymshark-founder-and-bankers-limber-up-for-stock-market-debut-12431949

Possible IPO although they can't really thinking of going now while asos and boohoo are hammered!

Odd how they are speaking to investment banks about it? I mean bunch of accountants right?

gymshark is the best comparator for boohoo as it is a pure own brand offering vs asos which is still majority third party revenue (although improving)

General Atlantic paid around a 40x p/e I think when they bought Gymshark so shows the discount on offer here at boohoo

I also can't find one!

or another example was the "oversized" trend. Asos know your preferred size. They noticed with casual wear poeple were buying a size up

This insight from the data led to them spotting the trend first and then having the right lock down clothes earlier

Sorry I don't mean to say demand ware isn't special - I'm invested in THG I fully believe in the value it offers

My point with boohoo is that that part is augmented by having it's own physical infrastructure and also million and millions of unique customer visits ie PLT is a first or second place shoppers will come so if search rises for "tennis skirt" boohoo know this first

The software is one thing, the fully own logistics is another but also the bank of customer engagemet is another too. You need all three to have the insight. Asos give a great example of this on their capital markets retail event. As bridgerton hit screens on netflix they noted that searches for "floral dress" etc went up x% so within 2 they had sample to test. It was a success so in 4 weeks asos had a line of bridgerton inspired dresses which sold out (data led test and repeat model)

That insight came direct to asos. they had ability to capture and then infrastructure to execute. Everyone else stood around just producing "lines" of clothes

Capex is going up! Boohoo now needs to invest in automation

Burnley automation cost £124m and saves £24m annually
The PLT site in Sheffield is underway at a cost of £120m and will save £20m annually

This is good capex and you want to see it. Other warehouses are all manual and US will start manual as well

This is part of the sell-off and same for asos the reduced margins now mean these businesses are running just to service capex atm. But as (we believe) margins will recover then the cash will follow and be amplified by the efficiency savings (or you put that saving into growth which is what asos announced yesterday)

But this is just for the website. A webiste is that just a website nothing special

Also the data belongs to boohoo and that's what is important

How the data is farmed is not that great

Shein has it's own ecommerce software , so does AMZN but Boohoo and ASOS don't
Shein has it's own Warehouse management software , so does AMZN but Boohoo and ASOS don't
Shein has it's own customer service software , so does AMZN but Boohoo and ASOS don't

how do you know this? don't havre to attack me I'm just asking

You think MK calls the shots?

I'm not so sure. JL is the man running it and unfortunately he forgot he's in the platform business and thought he was in a retailer

He's spun the marketing wheels to great success but hasn't backed up with the platform agility (he bought plenty of capacity but no agility)

But agility also gives you capacity asos will £6billion revenue out of same no of warehouses which boohoo saying they will get £4.7bln out of

Makes a big difference

I'm confused are you digging at me here?

All im saying is why does rag thing that comment fits

"Sky's the limit for Asos and BH with international online expansion but for BH this is an area of JL's weakness"

You'll see how little he knows

@south I was just asking your view was all. It's not my quote it's from ragtrade

I just think it's a very daft quote given as you pointed out the great revenue growth boohoo has had

The point is what rag is now claiming is their fault was somehow something that didn't exist ie an ability to invest in a platform for US

Ask him why "Sky's the limit for Asos and BH with international online expansion but for BH this is an area of JL's weakness"

Just curious what his "supplier" insight is (btw his supplier company has 8 people if you think that's a true look in the door that's crazy)

When you quote the revenue growth for boohoo and given the US is 50% of the business what do you think of the quote below?

"Sky's the limit for Asos and BH with international online expansion but for BH this is an area of JL's weakness"

I like both businesses

I'm just saying it's curious how each went a different strategy and each has a problem atm the other is perfectly designed to fix

I don't understand your negativity for me in this. If it upsets you that JL doesn't own boohoo shares then take that up with him. If it upsets you that US growth slowed to 9% from 40% as the delivery time is too slow take that up with JL. If it upsets you that boohoo is suffering higher cost inflation from wages having not automated it's warehouses sooner take that up with JL

Or you can jusy bury your head in the sand and think what i'm saying it's true. This is a stock not a football club. If you're having to wear blinkers about any of the negatives then investing isn't for you. You should be aware of the negatives and what the cost is to fix them

Like i said asos has an issue that's it's brand and marketing isn't as good. This is boohoo's main skill for driving revenue. I'm not against saying asos has faults too

It's a business not a football club you don't have to blindly love it just understand what it does well and what it does wrong and then how much cash it will bring to you vs how many years forward of cash you paid

And rag new great comment Boohoo aren't great in the US - no it's just 50% of the business!

If you want to call deramping there you go

What a melon

"Imagine praising a company that is ran by a certain ceo and then not smelling the coffee when he leaves because he knows the end is coming lol....."

Is this for me or Kallu?

Don't forget here with Boohoo JL has no skin in the game. Not a single share. he's on a £50m free bet which he gets £1.5m a year for trying

This isn't "deramping" it's just factual

Quite funny to learn that Nick was an accountant

For all rag has said we have to appreciate the irony there!

Love it

The £18m was only 6 months so double and add new wins. Don't forget the £18m is the revenue share model. What Eballs has said above isn't quite correct as they are moving away from fixed fee to rev share

The division needing cash to scale up is coming from softbank as they are putting their £1.6bln into the ingenuity entity so that will be well funded. Of the current £400m cash we don't know who gets that but I suspect Ingenuity will claim it's share

But that will mean that beauty will likely need to raise some cash to be ready for M&A. This is annoying for us as shareholders but the trade off is that the dilution should be less than the market value gain we get from being a standalone business

I think it does have a lot to do with boohoo. It shows the difference in strategy

Asos want "Asos will be looking for someone who has worked in a large online retail environment." and when you look at asos and listen to them (even yesterday) their main proposition is the platform ie be faster, have more choice and be cheap through efficiency

Where boohoo got a ceo from the land of bricks and mortor who chose to drive growth through brand and advertising (boohoo spend 10% of sales on advertising and asos spend 4%). JL has only just finished a first automation project and he decided against a US warehouse believing brand would win (he was right while covid has people waiting but now speed is back in fashion - asos US numbers were good for last two months)

So I think it shows boo's errors (but of course they are now at work to fix and will) but also shows asos lack the markting and brand strength of boohoo

Ultimately if you could plug PLT into the asos platform we would all be very very rich as you'd have the perfect brand on the perfect platform

I don't do "ramping" or "deramping" I just do the facts

Some are good (2 year CAGR growth puts us way ahead of plans) and some are bad (US warehouse and proposition is poor). Just if you say the good points people on here think you know a lot and say any negatives and your an idiot or "deramping"

You have to be aware of both and model into the value of the business

If you think PLT and Boohoo will "wane" over next 5 years then this stock is a huge sell. As you're paying forward more than 5 years of earnings. So it f you main income tap is going to "wane" you should sell. That's how it works. With a stock you're buying future profits and cash. If you don't think they are there then you sell. If you think they will be bigger you buy

That's the start but you need to at least know the current state of what you're buying ie how many years profit am I buying today. Which rag said to me was just "rubbish, do you even know what Pennywise is?"