Stefan Bernstein explains how the EU/Greenland critical raw materials partnership benefits GreenRoc. Watch the full video here.
Top shop always struck my as odd - outdated high street brand with little exposure to beauty or sportswear, and at a price rumoured to be around the £300m mark.
Any deal should be assessed based on its own value. For £55m + vat this presents a fairly low risk opportunity. If we can pull it off successfully (I believe we can based purely on our track record of strategic acquisitions) then it quickly becomes an absolute steal.
Shrewd - I feel like some people struggle to differentiate between day trading and long term investing. Both can have a place, but if you’re a looking at Boohoo as an investment to hold over the medium/long term, then today’s news is very pleasing.
The Efficient Market Hypothesis - anyone who isn't aware of it should really read up on it. Anyone who believes markets are strong form efficient shouldn't be here.
The entire premise underpinning active management is that share prices can deviate from a company's intrinsic value. When a company posts stellar results ahead of expectations, and the share falls - don't rush in to gloat. Consider what it really means in the long term, because it may represent an outstanding buying opportunity.
Remember - markets are sentiment driven beasts that fluctuate quite randomly. Things like revenues, margins, profits, operational efficiencies, international growth etc are much more tangible 'inputs' that contribute to a businesses long term growth.
The share price shouldn’t be expected to move up simply because it’s the week of a trading update. We’ve known when the update was coming for a while now - even had a fairly sustained run over the past few weeks - so this idea that it should tick up based on widely known, publicly available information is a misnomer.
Similarly - stating that Royal Mail level numbers are up should not be interpreted as anyone suggesting all of those parcel numbers are from Boohoo! Everyone knows online is booming and it’s a near certainty that Boohoo is a beneficiary of that, however.
Dan - I was under the impression Shein may reach the US quicker. Quite pleased if that’s not the case. Any idea what sort of order times we’re currently looking at in the US?
My order just arrived, so a total turnaround time of about 16 hours from me clicking ‘buy’ for 99p, albeit that’s with a promo code. Decent stuff tbh, certainly good enough for casual wear or at the gym.
The discussion here has been quite interesting, but it does feel as though it’s largely become the same people repeating the same points as of late.
I had always seen Shein as a low quality competitor but some worthwhile points raised here. The difficulty for them will be order time. Looking online just now, if I was to order today the earliest I could receive my order would be the 24th January. Ordered a couple of gym items from BoohooMan yesterday at about 9pm, order the promo code listed on their website, and at a delivery cost of 99p they’ll arrive before 11pm today. That’s as good a turnaround time as anywhere I’ve seen.
I know Shein aren’t particularly big in China, but is there anywhere they can ship to in that sort of timeframe?
Good to have an update and quite a strong message having KPMG on board.
I genuinely believe there is a desire from within Boohoo to improve things on this front, and be transparent. It may be a desire that stems from personal gain (share price impact) rather than altruism, but it’s a desire nonetheless.
And not about Boohoo for once....
https://www.bbc.co.uk/news/world-asia-54960346
Wonder if the Guardian will pick this up and run with it for months on end......
A long position is simply a position that increases in value as the price of the underlying increases, most commonly used with derivatives.
Eg buying a call position would be deemed going long, whereas selling a call position (and benefitting when the price of the underlying falls) would be going short.
Lockdown is good for Boohoo, but I certainly wouldn't be expecting fireworks at 8am. Markets react to uncertainty first and foremost, and a combination of lockdown, covid numbers in Europe (likely to be followed by the US) and US elections mean we're facing a lot of it.
We won't find out at 8am tomorrow if that optimism if justified - we'll find out at the next trading update. Fundamentals do win out even if they take longer than we might like.
It was a disappointing article that looked quickly pieced together. The attack on Kamani for hosting a meeting in a hotel lobby, which while a bit odd hardly warrants criticism, is stretching things. The unsubstantiated line about the companies financials being less than squeeky clean sums up a lot of modern 'journalism', like isn't your job as a journalist for the FT to investigate these sort of issues?
Indeed he was.
Not one for me as I prefer to hold long term, and could see a better entry price on the horizon, but there's definitely money to be made here if you can trade it well.
The number of outstanding shares would have no impact on a dividend payment.
Companies generally pay a dividend when they believe it is the best use of cash. Boohoo are a high growth company, focussed on acquisitions, and probably viewing the Covid situation as an opportunity to accelerate their business growth trajectory for as number of years (I know from the institutional side that we’ve been talking about some businesses seeing a decade of growth over the Covid period).
I would be more concerned if they suddenly if a dividend, because I want them to use that cash to grow the business.
Every time I see negative volatility on a stock that is widely discussed on LSE, I’m reminded that most here are short term speculators, ideally hoping to get get in and out within a few days/weeks.
Nothing wrong with that, but I would caution against not making that distinction if you’re looking for some guidance here. The share price has been hammered by relatively innocuous news. A auditor not retendering for contract renewal is NOT an indication of dodgy practice. Consider the ramifications for PWC if they failed to report illegal dealings whilst maintaining their position as auditor (which they have, they’re simply not continuing after the end of the current contract).
If you’re aiming to trade this, good luck to you, but your guess is as good as mine as to when you need to move to catch that falling knife. If you’re here to invest, then this could potentially be a fantastic entry point. The company is currently worth about 22% less than its pre Covid valuation, and has been one of the major success stories of that particular scenario.
People prepared to wait have the potential to make some very impressive returns here.
My understanding and I may be wrong on this - an auditor has a legal responsibility (as well as a moral an reputational one) to report any wrongdoing it finds. PWC are still the auditors are therefore would be viewed very poorly if they failed to do this.
The simply fact is, they haven’t. They’re simply not retendering for the contract for reputational reasons.
Genuine question - is there really a story as such?
How often do companies change auditors in practice?
I would assume that given the scrutiny Boohoo has faced, changing auditor after 6 years (a year later than they should’ve) is part of the wider ‘cleaning up’ strategy.