Member Info for danl90

@Pmor - they could just do a direct placing. That way we can control the price and not have as heavy dilution (all dependent on how much is needed)

But a placing allows us to control the narrative as it not as "shotgun wedding" as a right issue. Also has a great advantage of speed ie cash in hours not weeks like a rights issue

https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2020/boohoo-com-plc-annual-report-2020-hyperlink.pdf

pg13 - last year boo added 1.1m ig followers. The total stated is 7m

Go on IG today it says 7.1m

Fail

@moose you seem to have the same problem as rag and just see a small minute thing and think somehow it’s fundamental. Yeah boo has grown on IG each month but put that growth in context. Last financial year added 1.1m to 7m. Looking today it’s at 7.1m

So growth in IG has slowed. It’s always important with analysis to view in context of the whole business and also L4L comps

I think you’re right but unfortunately the market will give you no value for a business model that isn’t yet operational and COULD be losing market share (next does beauty etc)

Also I don’t think the new brands will be valued as high if they are lower growth

My fear with boo is the boohoo brand. I think quality is poor and consumer know it. No new IG followers since Sep-20, YouTube reviews (which are watched by millions) are poor and boohoo has been ok(ish) on tik tok (oh polly has wayyyy more views and tik tok is introducing a direct shopping feature)

Even if new brands come in the value destruction IF boohoo has performed poorly will not be offset by a long way

I think the presence of Chinese competition concerns the smart money.

For personal reference gf got some stuff from aliexpress took a while come but quality was great she’s happy with all of it. She got some shoes from PLT to compare and had me guess. Ali were hands down the better shoe. Genuinely surprised how well finished they were and 60% of the price

Food for thought

Asos did a placing last year and the market loved it

I agree same here. Let the price rise a little further and then raise a small amount

No of course there are exceptions but the macro idea is growth sells off in inflation as if the bank interest rate goes to 10% why have the risk that boo brings to get 20%? Also if a lot of that 20% boo growth is baked in what gain have you really bought? Better just to sit back and get a risk free 10% so what happens is growth sells off

If we all got 10% from a bank the stock market would be a lot smaller than it is. The stock market has swelled beyond belief as for over a decade you've got peanuts from a bank

Growth stocks also sell off in inflation period - why try and get higher risky returns from boo when boring safe investments start to pay more? If inflation worries become real and we see stimulus (expected to ramp inflation) you may see more see offs as boring assets increase their yield

Also the question will be asked how does inflation play in to boohoo

In the world of the "woke" investor you can!

Oh well we will just have to settle for insane cash generation and dividends instead! ha

On rough figures - current market cap is £40billion but debt (in £) is around £11billion so EV is £51bln. Share price atm is £3 so a 1/5 of value is lost to debt. On paying off the debt to 0 you're looking around an extra 60p

then multiple expansion and dividend growth will also come into play to drive the price higher

how banks are only seeing this at 350p is mind blowing. I think it's purely ESG which will hold back the shares but this is bonkers world we live in where tesla (which uses our metals) is green and we are dirty - madness

Card should look to do as N Brown has done
- raise a bit of equity as part of a "digital transition story" not as part of a balance sheet strength
- move to AIM and position as a growth stock

You'd have to think with the growth digital is doing along side the growth we can gain from competitors falling away in the store estate that growth should be reasonably strong when the world is back to normal

Also card is the lowest cost operator so a clear advantage

Assuming trading has a poorer year next year (won't be a big a covid impact) does anyone know what level of FCF we are looking at for next year?

Really hoping the new CEO doesn't have a passion for M&A! GIVE US THE CASH

Ever catch a break?

Good company
Long term contracts
Growing organically at 10% pa
M&A on top
Technology platform sorting out costs
Structural growth market
Director buys
Historically low p/e (even more so when you put in recent M&A)

Yet we drift lower!

Over 9,100!

All the miners seem to show a really sharp fall in share price after the 16:30 close on google. Is this real or just an oddity of google?

My account shows glen closing slightly above 300 but 289 on google

Two stocks I have bought recently are Ramsdens plc and Sanne Plc

Both great businesses

Yeah lots of different parts under one umbrella. But as you say it can be more common they are in specific companies but if theirs a £ to be made big IB will be there! Ha

But I wasn’t at big IB

Stuff like (and not rag bashing as white flags are out atm) but when he valued boohoo on a trailing P/e. I pointed out that trailing p/e isn’t really useful with a growth stock. That’s not massively game changing. You’d expect grads to get that right

Like I said it’s not that deep

@hedged obviously not going to say where I worked but in some of big banks they are separate departments ie Goldman have an IB division and also an asset management division. During early years you can (if lucky) move between depending on skills and relationships

You’re right in a lot of instances they can be separate firms but there are lots where they are just different departments (although there are significant Chinese walls for obvious reasons)

@splice fair but sorry it’s not that deep. Stuff I say on here is just basic business valuation/ strategy stuff

@splice what does psy ops mean?

It’s not complicated I used to work at a fund/ investment bank so just know what it’s all about

I really think Glen is heading way higher than £3.