Member Info for DC2007

...I was quite pleased when I bought at £2.95 because further substantial drops seemed low probability. Since, they've more than halved!

Sentiment has thoroughly soured with nothing seemingly able to restore BOO's reputation; either that or the market knows something.

Agree, it does come across a bit desperate. Boo's core business is selling fast fashion to the young. They're doing well at that and shouldn't diversify into what they don't know. It'll be dilutive and cost cash for the trouble.

Hmm, a head-scratcher. Debs is a broken brand and near worthless. Looks like one purchase too many. I'd be very surprised if this pushes the SP up. Down a few percent more likely.

Valueless because those shares don't exist -- press spouting nonsense.

..."we’re forecasting November to be beyond insane as people stay in and buy presents etc."

This breezy sentiment appears common but it's groundless optimism: people will stop spending once cash becomes tight and jobs become scarce. All retail will be hit by this. The shape of the second wave will not effect equities in the same way as March.

"Never before has so much effort and resource been provided to vaccine development. More likely we will end up with several that work let alone none."

What makes you so confident of this?

Think it's a typo - 1500 off the Dow in the near future looks entirely plausible.

From the intra-week low - what a volatile beast Boo is!

If it's UP UP from here, why is it going DOWN DOWN?

Tripe Peoplepower. Their management is far from great; their corporate governance is weak and that spills into a volatile share price. ASOS is much more professional and orthodox in those matters.

Who is Liz Kendall? Has less weight than even Peoplepower.

Peoplepower criticising someone for using the same argument again and again! They must be having a break from reading the weekend FT cover-to-cover.

£20bn revenue is pie in the sky that suckers like Peoplepower1 repeat without giving it any thought. £20bn has got to be a large proportion of the whole of Boo's target market: fashion is fragmented and fickle so it does not lend itself to monopolies. Claire has talked some sense.

Where did you copy and paste that from People?

The probability of bust isn't high SuperJ. But their earnings look fragile for as far as we can see. The cash on hand is good, but much less than half the £800m you mention ( these are their undrawn facilities). If earnings continue to fall off the cliff, how long will their cash pile last before they have to tap equity markets, or otherwise restructure the capital? Companies can only go so long without their main source of revenue before the owners might need to take a haircut. Things here look more precarious than GOG, with NEX looking far stronger than both.

What, other than the low SP, makes you so sure a takeover is imminent?

No, I'm not moon man to whoever insinuated that. I researched SGC in some depth before corona and then during corona. CV19 is going to crimp their earnings for years. With their debt and weak balance sheet, they really don't have much slack to absorb this.

Some see solace in the goverment subsidy but I do not. A strong business would not need a subsidy; it would not be dependent on it to remain viable. What if the government tighten the terms? Or if they have to reduce the funding?

SGC is in a precarious position and admin/bust is a peripheral possibility. The market they operate in has went from stable and predictable to being an unknown: much like the way online rapidly supplanted physical retail, CV19 has catalyzed a shift to remote working that is here to stay.

The balance sheet is very precarious, covid is going to sink their earnings, and part of their income is subsidised. Capital restructuring probably needed to stay afloat. This is a poor investment: high risk to principal with no plausible upside.

Oh dear! Peoplepower's great research doesn't add up, again.

There wasn't a lot of equity left here last time I looked. That and high debt is why this will keep being marked down. Rescue rights issue or D4E might become a necessity. Covid has fundamentally changed the sector and made this no longer inevitable.