Paul Scott - Small Cap Value Report23 Apr 2020 01:30
My opinion - this is a stunning business. I'm kicking myself for not buying any on the recent plunge. I was so close to buying, but just wanted it a little cheaper. That resulted in me missing the boat. Also, to be fair, we didn't know at the time that BOO was bucking the trend, so it would have been speculative to have bought in the March lows.
Personally, I'm not chasing the price any higher than it is now. But I'll definitely be a buyer if there is another market plunge.
If Covid-19 is something that we are just going to have to live with, until there's a vaccine, as some experts are saying, then it really does raise the question of whether it's worth investing in any physical retailers? There's a lot to be said for just buying the best online retailer, BOO, and holding it forever, safe in the knowledge that it seems largely impervious to pandemics. Plus, it was beating the competition before Covid-19 reared its ugly head. So BOO shareholders are likely to win whatever the future holds. The high valuation does arguably reflect that already though.
One final point, is that it's worth looking at how well international sales are progressing, especially USA and Europe. This is rapidly becoming a global stable of brands, hence I think the £3.4bn market cap has plenty of scope to go much higher, if you take a long-term view, and based on the global potential.
I could scarcely be more positive about a share on fundamentals & business model. Valuation is high now though, so for now, I'm going to sit on the sidelines and wait for a better entry price. This share is in top slot on my wish list though.
https://app.stockopedia.com/content/small-cap-value-report-wed-22-april-2020-placeholder-595678?order=createdAt&sort=desc&mode=threaded
(It was Paul Scott's early positive reporting of BOO that made me first buy @ 37p with later purchases of 71p and 79P in 2015/2016)
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