Member Info for Mattyboy-

Brokers at Peel Hunt retained their "buy" recommendation, saying it was not a surprise that Boohoo’s ethical credentials - known in City parlance as ESG - fell short of best practice: “Accepting this work in progress, the group’s multi-brand platform remains a compelling growth opportunity, but management must move to quickly embrace ESG improvement."

Boohoo this week drafted in independent specialists and launched a sweeping investigation headed by lawyer Alison Levitt QC of its supply chain in the wake of sweatshop allegations.

Following a three-day probe, it said that garments for its brand Nasty Gal were made in Morocco and not Leicester, but were shipped there for repackaging. It added that it had found no evidence of suppliers paying workers £3.50 an hour.

Maybe Standard Aberdeen should be looking more to working with BOO to improve working practice for UK ethnic minority workers rather than putting their jobs in jeopardy.
Losing BOO suppliers in the UK as a result of this old-school(I won't say the 'R' word) institutional/press led witch hunt would be a disaster for many UK Asian communities.
BOO has repeatedly stated its intent to improve this area and pledged many millions to do so.

Just wonder if all this negative press has a more sinister side. Successful Asian family seen flaunting their wealth.
Systemic?
Institutional?
Maybe...maybe not.

27 million shares sold. Sold is the past tense as in already happened. This no doubt drove the SP down towards 200 earlier in the week.
We have moved on and up from there.
Banging out a load of shorter bull at 17:00 on a Friday is standard practice . So stale and transparent.
Shock horror.....the Kamani family own lots of different companies....OMG!!!!

I see the 1 post pond life have arrived.

If Aberdeen Standard have taken a ‘moral’ stance and sold 27 million shares.....someone has bought them....and what?

The way I see it is that Boo can carry on picking up distressed High St stores for peanuts and literally become the High St online.
It's going to be like when you look at Amazons chart history and ask yourself why the hell you didn't get in earlier and stay in.

500p target price and Buy rating (unchanged)”

Goldman Sachs doesn’t even sully its “buy” analysis with concepts of right and wrong: Ahead of the independent enquiry results, we have retained our Boohoo FY21 earnings forecast (EPS 7.67p, +30% yoy). price target 345p

http://ftalphaville.ft.com/2020/07/09/1594288944000/Markets-Now---Thursday-9th-July-2020/

Analysts said Boohoo’s shares had largely been pushed up by small-scale investors taking advantage of the steep slide in the fashion chain’s share price to make an investment.

The price of shares was also bolstered as hedge funds, including PSquared Asset Management, which had taken short positions – a bet against a company’s share price – closed their positions after benefiting from three days of sharp falls in Boohoo’s shares.

John Stevenson, an analyst at Peel Hunt, said there was a recognition that the share price had dropped too far, given that Boohoo had made a serious pledge to tackle the problems in Leicester.

The group’s top institutional investor, Jupiter Asset Management’s Merian Global Investors arm, had increased its interest in Boohoo to just over 10%, also reassured the City.

25million shares bought up.

500p target price and Buy rating (unchanged)”

Goldman Sachs doesn’t even sully its “buy” analysis with concepts of right and wrong: Ahead of the independent enquiry results, we have retained our Boohoo FY21 earnings forecast (EPS 7.67p, +30% yoy). price target 345p

http://ftalphaville.ft.com/2020/07/09/1594288944000/Markets-Now---Thursday-9th-July-2020/

Analysts said Boohoo’s shares had largely been pushed up by small-scale investors taking advantage of the steep slide in the fashion chain’s share price to make an investment.

The price of shares was also bolstered as hedge funds, including PSquared Asset Management, which had taken short positions – a bet against a company’s share price – closed their positions after benefiting from three days of sharp falls in Boohoo’s shares.

John Stevenson, an analyst at Peel Hunt, said there was a recognition that the share price had dropped too far, given that Boohoo had made a serious pledge to tackle the problems in Leicester.

The group’s top institutional investor, Jupiter Asset Management’s Merian Global Investors arm, had increased its interest in Boohoo to just over 10%, also reassured the City.

John Stevenson at Peel Hunt has made no changes to his profit forecasts for Boohoo because he does not think its profitability is under threat.

“The company operates on a cost-plus model. If costs rise they will increase prices,” he said. “If a £7 dress suddenly costs £8, will demand disappear? I doubt it.”

If you're not sure then don't do it.

You have to remember that you're buying into future earnings....once the vaccine arrives it will truly be party time.

Inane tripe,standard.

If I was Kamani I would get someone to start investigating links between Shadowfall and the FT. Slightest whiff of evidence of collusion and get the FCA/Police involved.
A short attack of this nature at this time on a booming UK business spawned from personal greed would be reprehensible.

This is INSTIs buying in....maybe BOO gave them a peek at the sales figures?

Not immaterial, but temporarily losing 1.4% of sales does not = 2 billion loss in MCAP

bob......Amazon,ASOS and Next account for 1.4% of BOO sales this year.It is immaterial.

Boohoo shares rose this morning as the City stuck by the fast fashion seller despite recent revelations about working conditions at some of its suppliers.

Yesterday the fast fashion giant launched an independent investigation led by a top barrister into its supply chain, and pledged to beef up its board with more directors. It has also ditched two suppliers accused of employing staff on slave wages.

In early trading shares rose 20% higher as a string of broking houses urged people to buy the shares. Traders are mostly interested in revenues and profits.

Brokers at Peel Hunt said: “We’ve seen regular exposés into UK and overseas supply chain conditions, which rest on a high profile company such as boohoo or Primark. By accepting the need to rebuild Leicester’s reputation, Boohoo is stepping up to the plate, rather than brushing this aside.

“Fundamentally, we see the share price fall as a buying opportunity, accepting that ESG remains a work in progress for Boohoo. Now trading on sub 25x PER.”

John Stevenson at Peel Hunt has made no changes to his profit forecasts for Boohoo because he does not think its profitability is under threat.

“The company operates on a cost-plus model. If costs rise they will increase prices,” he said. “If a £7 dress suddenly costs £8, will demand disappear? I doubt it.”