Member Info for DC2007

AIM4

Inquiries of any worth could only come from a separate entity to the subject. Since there is no body in the sector to do this, Boo have cooked up their own poor facsimile to gloss over whatever is going on to try to repair their image. The inquiry will only say what Boo want it to.

The ETI's logic is not flawed or childish at all. Boo paying for the review is like getting to mark their own homework . The review is a PR platitude rather than something worthy of the term 'investigation'.

Agree, the debt has ballooned far too quickly. They will need to lower gearing a good way before even thinking of a dividend again – a few years' hiatus seems likely.

More regurgitation from Boo's biggest fan eva.

That Yahoo article is terrible – good for the bin only.

Meagre rise implying a bid is more likely? Can't be. It would have went bananas if a bid was being put together behind the scenes. They're weak rumours that will probably come to nothing.

Story has now appeared in The FT.

Haha @People, your reasoning is corking as usual!

The drop is possibly because it was overbought following the director purchases; the volume has dried up and so the share price deflates a bit. Good luck with your holding inferno.

The management names might be different, but they are as deluded as ever. Announcing the appointment of a potential liquidator, they state at the same time they are "trading strongly"!

Sergio has found a decent new £700k job in German retail. The profile puff on the website says how he successfully steered Debenhams through a crucial restructuring. Unbelievable!

Plagiarisingpower1 should be their new handle.

With your £60/share projection, what's the earnings and PE ratio to go with it?

So come on then Peoplepower, talk us through your research of today and your conclusions from it. Eager to hear it.

Rutends,

30% in a year is far too high an expectation. 10% is at the higher end of reasonable expectations.

Other important considerations: what do you intend to eventually use the lump sum for? And, if you lost some or all of it, how would you be with this? Third, are you spreading the sum over several investments rather than putting the lot in Boo?

Atb with your decision.

PP has done very well buying £100k BOO at 27p. They portray this success as judgment. But it could be luck and determining which is impossible with a sample of one.

Saying others should buy in now is scrambles the context of their position (already up 10x) with a new stake at today's entry price. The risk of loss with each investment is not equal. PP claims this will be worth £60 in 20 years. That values the company at £75bn (adjusted for today's money about £45bn). By then, then should be a mature company. Assuming a p/e of 15x, that implies earnings of £5bn. Assuming stable margins at 5%, that gives turnover of £100bn. If you think these are plausible — I do not — then BOO could be all PP keeps insisting. It would be useful if they would share their calculations for BOO having a future value of £60/share.

More repeats of people's penetrating 'research'. What a bull****ter.

Buffett owns stock in Amazon. He would have seen it too risky as a start-up. But once its competitive advantage became obvious, he bought in.
I could be confident that the Amazon of today will still be here in a decade or two. Boo, far less so. They compete on price and newness. The tool they do this with is social media. They do this effectively but the use of social media has no barrier to entry. Twenty years is a long time to keep a message fresh and on point. Competitors can copy their model & might plausibly come up with something the customer prefers. I doubt the typical Boo customer is sticky. They will follow price and latest trend above everything.

Atb

Peoplepower is wrong to say this is Buffett share. It's anything but. If it's one for Warren, why have Berkshire not bought any? Come to think of it, why haven't they bought the whole company? They could afford it from their loose change.

Buffett would rule this out due to dodgy management; being easily copied; lack of stable operating history; lack of franchise/brand, etc. Being around in twenty years time is far from certain either.

Agree, markets look twitchy again. A large crisis type sell off in autumn looks possible. Boo could hardly be expected to escape.

More fundamentally, like any retailer, if consumers have less or no disposable income, their sales will be hit. With the economies of their major sales regions looking precarious and undoubtedly weakened, this remains a concern.

Base case for such a yield is it's a trap. I've never liked that the DPS was so often ahead of the statutory EPS. New management might put that right. I'm a holder but I wouldn't add here. BATS is the stronger business. But even there, the debt in combination with an industry in decline has to be considered.

Atb