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Except Oil
If it was a classic pump and dump then the whole retail sector has been pumped and dumped this was a sector issue on yet again inflation worries across the pond and here.
Then you have Putin out on manoeuvres Combined this tanked the whole market tanked on Friday. What we need is an easing of tension in Ukraine and the market to stop panicking about inflation and we might then have few consistent blue days.
Simply the PE and Price to sales historical position for Joules on PE would average around 18 to 20 so currently with a fwd pe of around 7/8 it doesn’t have to do that well to well for the investor. Boohoo historical PE average around 40 but has been as high as 115. So really my point is it will have to get back to a PE around 40 to get back to the £3/4 region which is a hell of a lot tougher in todays climate. That said the Price to sales is pretty good so who knows. Dyor.
I think the difference is Joules was ridiculously cheap by valuation Boohoo although I agree cheap is certainly nowhere near as undervalued so hence the slower climb back to somewhere higher but lower than the historical sp.
Of course DYOR
I don’t understand why people are selling apart from impatience getting the upper hand.
Nothing has changed the share is largely becalmed waiting on new news. The tech stocks have been hammered because of their high valuations THG is being priced at less than 1 years sales it is not the same.
Davffed - This fund relies totally on robotic computer trading so I guess the computer has identified the volatility so senses an opportunity. Quite frankly I would be a lot more worried if it was a fund where actual people are making most of the decisions.
Dyor
If you look at the reluctance currently in the market to pay high pe valuations then I think it looks a lot less like a bargain than it seems on the surface. I have been in and out of this share but currently remain unconvinced it will get back to previous levels over next few years. It also has to play catch up on the international side compared to others but I could be wrong so all the best to those invested.
FCF I am not really sure because they are focusing on driving growth and scale very much like Amazon did and to be clear I am not suggesting it’s Amazon but it’s a good example. But they have loads of cash so my point is they are not going bust anytime soon and with eye watering growth levels which even the critics in the city acknowledge. It’s hard to see this staying this low.
If want loads of FCF don’t invest in a growth stock buy oil. Dyor
THG will not be taken private if it is not in the interest of the major shareholders MM can’t do it without them. Even if he could you wouldn’t want a reputation for shafting your large investors if you want to re list in the US in a couple of years.
If the price offered isn’t attractive enough they will simply stay listed and ride out the current bs and focus on the results which will in time be reflected in the sp.
I have to say that the quality of comments and insights on this board have deteriorated to an extent that it reminds me of the above or the Boohoo board.
That said my view is that the PE deal is still a strong possibility which will be announced when the company and PE teams feel it’s right not when a few PIs want it to happen. Secondly if it doesn’t happen and stays listed it will do well if you hold your nerve the revenue growth is through the roof and they are sitting on one massive pile of cash so all is well either way.
If you recall some of the very nice but wildly optimistic opening prices being quoted on the board over the weekend and today we are saying it’s now an excellent buy as it’s so cheap!
I have about 90k in here and I think I will now hold off.
The Boom is a tad disappointing:) I was a little sceptical on Friday as to exactly what this would bring but did allow myself to get caught up in the weekend Jamboree. Anyway I have a large stake and will have to hold and see how it plays out.
To be honest I have mixed feelings on Boo upside (and their is definitely some) the PE looks low when you compare to historical levels I seem to remember when I first bought in 2017 it was about 115! then dropped back to between 40 and 80. So my question in this new world of high inflation and risk aversion will people still be prepared to pay this kind of multiple because when you look around all the high valuations have crashed not saying that it won’t bounce but the question is how high.
Hi all - hate to be the guy with the bucket of cold water but last time this was announced it just turned out to be a rumour. Personally I don’t see why he needs to do this. He has listed just this year so to run away after only a few months albeit with some bad experiences seems to me unlikely. The business is fundamentally sound and the bad stuff will pass.
That said I would be pleased to be proved wrong Gla.
ns_99 Thanks a great summary.
Hi all, The question that i am grappling with at the moment and I am invested is just how much upside we have the shares on the face of it for both Asos and Boo look incredibly cheap based on historical PE ratios but if the market has turned against high PEs which it clearly has are we looking a little backwards on where we place the value? I honestly can’t make up my mind but thought I would put it out there.