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Learned my lesson many years ago on Marconi, the huge multinational that could never go bust, it did. Continually averaged down waiting for the recovery and lost more than I could afford at that time. I am underwater on Boohoo with an entry price of 80p acknowledging it was a high risk share but certainly will never get into the “trying to catch a falling knife” game again.
For second day running another large Boohoo order arrived for my daughters. They tried them on, did not like any of them. Again all returned at no cost and another order placed. How do you make money with this model. Probably explains the price as they are the Boohoo demographic and all their friends do the same.
Yes put it with my other delisted stock which has been there for 10 years. No dividends and pretty well no information other than the published accounts, if either produce any value it will be like winning on the lottery. Suspect all those on this site who seemed to be looking forward to the delisting will realise that the grass is not greener.
Deos, yes just staggering that a business that went through the diligence required for an IPO, got into the FTSE100 on the back of huge demand for shares which rocketed, had almost no corporate governance. I think I recall the fraud being c7bn. It was only covid that kept what should have been a major story off the front pages. Fortunately my losses were painful but nothing like yours.
Problem is the price they could get the rights issue away at. It would have to be heavily discounted and suspect it would be around £5. The position of the on-line only retailers is looking precarious at present with significant increases in wage and delivery costs plus people cutting discretionary spend. Was not surprised to see the comment about returns as my daughters and their friends return at least 80% of what they order, nothing to do with the economy and everything to do with using it as a changing room facility without the inconvenience and cost of going to the local town, 10 miles away.
Adamsk, The comparison rely questions the validity of the recommendation. Same company making the recommendation therefore perfectly reasonable comparison, why have they got it right on this just because it suits your view. Not so many years ago Barclays had a 12000 target price on ASOS.
Poker chips, that “few years” is now actually 18. Similar with Renewi (former Shanks), turned down bid from Carlyle in 2009 because it undervalued the business at a price it has never seen since, currently at about 50% of the bid even after a recent recovery.
Roharps. People were saying that when it fell below 4000. This has been falling knife territory for a long time now. Difficult to see what will change the direction. My daughters and their friends continue to order a lot and return over 80%. Is the business model sustainable?
Revenue is vanity, profit is sanity cash is reality. How is it doing on these last two more important measures? It may have revenue but unless it can convert that into cash generation the share price will go nowhere. With distribution and wage costs increasing plus a squeeze on spending, when will it do that?
Struggle to see why there would be a spike. I would have thought more likely to see people selling rather than being left with shares with no market place to sell, no dividends and very little information required to be produced for a private company. I am only hanging on because not worth selling at current price. Institutions may be forced sellers if they are not allowed to hold unquoted equities.
All I can tell you is another holding I have, delisted about 10 years ago. I have the same number of shares in a private company. Unfortunately since that time the is no market to sell the shares and they have paid no dividends. There is no price available. My only chance of being able to realise any value is either a takeover, or re-listing on an exchange. I have no knowledge about the likelihood of either and published information is much less.