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I really don't care how far this drops. I am buying in increments all the way down. If it keeps falling I will keep buying chunks until it finds its bottom. This is a solid company that will rise again in due course. There is nothing wrong with this company, the direction the board are taking it in.
If anything, right now I welcome the drop as it is giving me ample opportunity to buy in at levels I could have only dreamed of a year ago. Buy low, sell high is after all, what its all about. Everything has a floor and this will eventually turn around as the fundamentals are absolutely all there. Medium and long term holders will be laughing in due course. Top-up, top-up, top-up all the way down. Just a matter of time and patience.
It is amazing how everyone makes a comparison to Primark. Where is the comparison. Its apples and pears. One is online and one is physical stores. One is cheap and nasty and one has a huge range at multiple pricing points. The only comparison right now is this that everyone has forgotten. They got battered and its BH's time right now. But if history teaches us anything, Is that companies who go out of favour for slavery claims like Primark in 2009 or even Nike prior to that. They ALWAYS come back. Because memories are short! https://www.reutersevents.com/sustainability/primark-cheap-and-cheerful-ethical-cost
What are the current problems? 1) US based court case., 2) Rising freight costs, 3) rising material costs, 4)inflation, 5)less sales, 6)more returns, . Lets work through them one by one.
1). Transitory - I have seen many class action law suits over the years and they all have in common a stupidly scary high number as the claim, in this case 100 million USD. I have never seen a case similar to this EVER get fined that ridiculous number. Not one. The consideration is how did the charge effect the person(s) making the claim. Did it effect them financially. Did it cause physical or mental stress or harm. Putting some timers on a website and adding some dubious marketing pressures does not lead to major trauma or has it led to massive financial loss. This will result very likely in a wrap on the knuckles and a fine at best but nowhere in the realms of the silly 100 million mark or every company doing business in the US would be bust. No one would ever do business there as all are guilty of some pressure sales tactics that unscrupulous lawyers could make a business out of in churn and burn class action lawsuits.
2). Transitory - freight costs will come down or companies will move to sourcing locally to cut out that issue. Boo are doing that by moving supply chains to Asia and reducing exposure to the UK.
3). Transitory - rising material costs are linked to many factors but investing directly in materials at the production level is a major part of fixing the problem. (Growing its own Cotton in ****stan for example). Good signs of forward thinking solutions.
4). Transitory - Inflation is real but. Average is 2.5% But it is not structural meaning here for good at that level. It is transitory. Minimum wage is about to be announced to be hiked to 9.42 for low income earners. For those physical stores such as Primark what is that going to do to their margins? Those minimum wages for sales assistants currently stands at circa 8.60p Those rising costs will be reflected eventually in clothing costs in their stores reducing margins. Therefore those with an online presence and especially those with more automation will fair better. Remind me who is investing heavily in automation in their new warehouses? Ah yes, Boohoo. With minimum wage hikes this will offset against inflation anyway freeing some cash to be spent as usual on hopefully BooHoo's wares.
5). Transitory - if sales are down because the high street has opened, fears of inflation etc, then the last answer goes a long way to answering that. Add in a lower amount was spent on marketing in the last 6 months because it was noted that big events weren't going ahead and it was felt that those monies shouldn't be spent. Marketing will start up again heavier than before & should lead to more market share again. BH doubled market share in last 2 years. Hardly terrible is it?
6). More returns. Probably structural but back to pre-covid levels. No higher than industry standard. ALL suggests an eventual rise
There seems to be a definite change in tone from the media. Just read articles fresh off the press from the Guardian AND the BBC, and both are very suprisingly upbeat and positive. Still an undertow to the Leicester problem but hopefully there is a continuation of the positive vibe that actually supports what this Company is actually doing good. Which it is. Onwards and upwards.
The market cap is today 4.08 bln so down from its highs during its reporting period. The bonuses linked to the market cap rising to 7.5 bln could have a suppresing pressure on the SP. It would have clearly been better to link bonuses to EBITDA or perhaps Profit after Tax. But lets not forget the clout of Carol Kane. A decent read amongst all the "bad" noise that seems to be pumped out by the mainstream media.
https://www.retail-week.com/retail-100/retail-100-2021-boohoos-carol-kane-named-uks-most-influential-female-retail-leader/7039856.article
This SP will not remain supressed. If the foothold in the US continues to grow than there really is only one direction. I am freeing up some more cash to buy another chunk at these lower levels. I wouldn't be to upset if it dropped a little over the next few days but happy to extend my exposure into these either way. It is going to be a patient ride on this one though I feel.
Why do you consider the valuation of the company to be too high? What are you basing that on? ASOS as an example has revenue in 2020 of 3.7 billion GBP and a SP currently of 4,892.00
Boo has a recent reported revenue of 1.7 billion GBP and a SP of 326.60
I would rather be in this stock than not be.
Smart move to calm more nerves in the Leicester area. https://www.leicestermercury.co.uk/news/leicester-news/city-player-james-madison-signs-5434129
Third footballer to come on-board. Very good marketing move. Get those bigger names onboard eventually. Hopefully.
You have to love the media for their continued attempts at headline grabbing purely to sell their "rags". But it seems that it can be very damaging when not actually relevant or proven as factual. Or worse, ramped up with no consideration for the damage inflicted. I don't doubt that in the chain a blind eye has been turned but Boo have hardly benefited from what actually seems to be some underpayment of wages and as the investigator has suggested, no actual modern day slavery. https://www.leicestermercury.co.uk/news/leicester-news/100-more-leicester-factories-inspected-5336058 Glad to see that Boo is taking the ESG angle seriously as this is becoming a rather important aspect for many investors when constructing a portfolio. I have a decent holding just below where we are priced now and will happily hold these over the next few months. We are defo going post 4 quid. And I'll be looking to exit way beyond that price.
Hush up A.Smithy. You were banging on for months that there would be NO HOLIDAYS this summer. Proving again to all you are full of it and know nothing. Now changing your tune to, "oh there will be holidays but they may change from green to amber at short notice". You know nothing, so get back in your box and be quiet! Just cos you can't afford a holiday after shorting at 5 quid. We haven't forgotten matey....hahahaha
The advice is not to travel to amber countries but not against the law. How many of the British public are going to see straight through that and get on planes to other European destinations. It also doesn't take an Einstein to work out that the self isolation is only 5 days at home in realistic terms if a test comes back negative after 5 days. You'd have to be pretty foolish to think that the Brit public hasn't worked that out. Especially when you consider the amount of self confessed fliers coming from India, ****stan etc via other countries to avoid quarantine in recent months. Proving the system can be circumnavigated. Essentially the borders are open for holudays already all across Europe. And in 3 weeks most of Europe will be open and probably added to the green list. There may be a short dip in price between now and then but this is going post 11. The difference it is not against the law so people will be going. It makes no difference there are limited countries on the green list. So much pent up demand that people will do the extea time at home and test kut costs are down to 20 quid. Too late to stop this now. Take the blinkers off.
The author who penned that article should be shot. A complete idiot. Suggesting that the fund shut down because of Boo. Utter nonsense. Its a 6 million fund, so tiny, and almost certainly a rebalancing of funds into other projects. The fund has returned a solid 9% per annum (in the retail sector that is good considering bank interest rates) and has beaten the UK all companies average by DOUBLE. To suggest this has been closed down due to a scandal is ridiculous. Its because it is too small and not attracted much of the institutional or retail market investors. The author is a headline grabbing bufoon.
A.Smithy. Whant BS will you come up with now? hahaha
A list of holiday destinations will be revealed within two weeks for residents to travel to, the Transport Secretary has confirmed.
Within two weeks, Grant Shapps will be unveiling the green list of holiday destinations which are safe for holidaymakers to head to from England.
Under the current roadmap out of lockdown, overseas leisure travel could resume for people in England from as early as May 17.
Looking at domestic coronavirus statistics, Mr Shapps said they "look good" for foreign holidays to resume next month.
The Transport Secretary also confirmed that Britain's vaccine passport scheme would use the NHS app which they are currently working on - which would show whether a person had the vaccine or testing.
Any capital raise, rights issue etc would never happen now. It would be preferred when some form of normality has occured in airlines during the summer months. The reason being that EZJ would not conduct a capital raise while the SP is not at what they consider its highlest level in the current market conditions. You would expect them to hold off for as long as possible now until the SP goes up to post 11 GBP as it will, when flights are starting to run again. That is the point, if any, that EZJ would look to conduct a capital raise to service longer term debt. Wait until they can maximise any new finance request at its best terms possible. So too early just now.
An auction is held everyday at 4.30 to 4.35 not a UT. the average us taken from all bids and offers placed during that time and they uncross at the point that most trades can uncross. So an average and the price is clised. Same happens at the start of the day and intra day.
Swapping labels is nothing new. Its as old as time and perfectly legal. That shouldn't even be a question. Walk in to Tescos and you see 2 chickens. 1 is "own" brand at a couple of quid and 1 is packaged with some fancy labelling and passed off as supreme farm chicken priced considerably higher. Budget households are naturally drawn to the cheaper "own" brand. The difference may be the price but the kicker is they are both from exactly the same farm. It is exactly the same as passing off a dress under one label or another at differing prices across different platforms. Its normal but just don't be so obvious about it. Nothing wrong with this practice at all. But naturally some news papaers ghave to source headlines from somewhere. It will have no affect on BH SP. Come the results day there is only one direction this is going.
A.Smithy. This one is just for you my old China. Lovely holidays coming and no quarantine on return. For thos ethat didn't short at 5.00 quid that is hahaha
https://uk.yahoo.com/style/summer-holidays-destinations-most-likely-095954150.html
I dont think it will be a big dip. We certainly are not going to see some of the lows we have seen. At best low to mid 9.00's. I cannot see this dipping below that range as there is simply just too much decent news out there that the longs have been patiently waiting for. Ultimately I do see these going a lot higher so for those that are faint hearted just sit tight and do nothing. For those that don't mind playing it a bit more agressively look for the short term pull back and get back in again. But lets see if I am right or not.