Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
No one cares, this girl doesn't - https://www.mirror.co.uk/news/uk-news/boohoo-customers-horror-24-outfit-21112595
- Government will not want to do anything that effects jobs. Boohoo will moving towards sustainability and this will create marketing opportunities. Boohoo currently do nothing wrong and a re a great employer - at least they retain a large element of manufacturing in UK. Regardless, I would expect Boohoo will buy up higher end brands (eg Oasis), capitalise on their brands whilst increasing margins by using Boohoo's manufacturing and supply capabilities - which are frankly phenomenal.
- Primark is not comparable and are not a competitor, different, market, model, customer and product. A boohoo customer might buy their socks from Primark but nothing else. Boohoo and associated brands are a lifestyle brands.
- The Boohoo website, although woeful is a work of genius and isn't meant to appeal to you, rather their customers - Every other down market clothing brand is copying boohoos marketing style.
- Boohoo had a note of caution h1 last year - obviously its good to be cautious about inherent risks.
- Agree, US market is a huge opportunity.
- Their customers don't care about sustainability, lets be honest. Without Covid, Asos would be going down the plonk - long term sell. Asos flogs other peoples stuff and less of their own - they will always struggle with margins and keeping on trend and by the looks of it, Asos brand positioning of the last few years has sort to go down market to mimic Boohoo.
- Boohoos customers are addicted to buying cheap clothes online and their insecurity makes them highly susceptible to online marketing. They will keep buying (active, zoom, parties, lounge, spring) and still are and the loss on physical retail in the market creates a huge amount of business for boohoo to pick up.
Lets just look at the fundamentals of this and hold and watch it go up over the next year. Physical retail competitors have been wiped out of market, online competitors such as Asos are behind the game, numerous opportunities to acquire competitors in run off at discount rate, huge potential internationally, bad press is behind them and they have made sig investments and the changes needed to address problems. Girls are sat at home bored with nothing to do or spend money on except shop online, online influencers pushing boohoo have more influence than ever due to everyone being on phones in lockdown. In 6 months time there will be another huge boost in people buying summer dresses and partying like the 1920s coming out of restrictions. Obvious buy in my opinion, institutions seem to think so to given their recent buys. DYOR
https://www.telegraph.co.uk/sport/2021/01/07/fishing-given-green-light-continue-third-lockdown/
Fishing now allowed in lockdown. Nothing to do except fish and spend all that excess on money on fishing tackle with the only competitive online retailer.
Only a very small number of sellers today getting frightened due to disruption to UK imports. Reality is that the worse corona gets, the better it is for AD - partly due to people spending more time fishing, push towards online shopping, more spending money to put towards hobbies, more holidaying in UK etc etc etc. Supplies shouldn't be too effected, majority of fishing equipment is imported from outside Europe and Asia and regardless of this, AD raised capital earlier this year to bulk buy a lot of stock to meet demand, I assume with a sizable buffer. Very credible EBITDA growth this year, onward and upwards into 2021. Given growth rate, this should be valued IMO, Strong buy up to 150p IMO DYOR
This has everything going for it, AD is a perfect play on covid-19. Rod licences have soared this year during covid-19 (https://www.chroniclelive.co.uk/news/north-east-news/lockdown-leads-boom-fishing-more-19190141), many young people new to the sport buying online, huge increase in people holidaying in the UK of which many will spend time fishing, those in work and unable to spend money on eating out or at the pub etc have more savings than ever to purchase higher value items. Smaller independents have been forced to shut during lockdown and are struggling to get hold of stock - this has accelerated the long term trend toward large scale online specialist retailers. Could potentially go a similar way to online cycling and running specialist Wiggle which sold to PE for reportedly around £180m. Will wait for results next year. Strong buy IMO, DYOR