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What do you think is going to happen to the SP if all the conversations with the PE is for demerger or Spin off Beauty instead of acquiring THG as we are hoping (at least some of us) ?

How this is going to affect us?

https://www.telegraph.co.uk/business/2022/02/19/battle-billionaires-hedge-fund-tycoon-targets-boohoo/

Let's see guys, I was here 2 weeks ago Friday evening, expecting a jump on Monday, but it didn't happened... I bought some more to avg down. I hope the rumour to come true and for a worthwhile acquisition premium... What I don't understand though is why the SP hasn't reacted, yet. You would expect when such kind of news hit the market, the SP to raise substantially and close to the acquisition premium (even before this has been announced).

Wouldn't the II and the Hedge funds care for a quick win?

@Bristolover I see your point but let me put it in this way... When something hits the news isn't rumour anymore, its news. And as a PI I can analyse this company on the publicly available information. If there is a piece of news that a PE approaches a public company, this sends the SP up. When you are long on the company but you have an average for example of £3 and this rumour hit the market, you want to average down because probably the acquisition premium wouldn't be 300%.

I understand that SP can go up and down, fall in and out of favour etc, this is the nature of the game, but having news distributed publicly that impact the SP without the reporter facing consequences if what he reports is fake, you don't have a fair market anymore, you have wild west.

It has been 2 weeks since the uncooked rumour hit us and nothing yet... the SP returned to its downtrend, but in the meantime many people have lost money. Same with Boohoo.

Uncooked rumours my 4rse

And just after I post it hit 20.2 million

This is selling like hot cakes!

I have seen the same play with THG a couple of weeks ago from same source... Don't get me wrong any catalyst news that will reverse the downtrend are welcome by me...

Of course there are headwinds, but I think they are exaggerated. I don't see how Macro level headwinds affect someone to buy a dress that costs £10 or make up... If you think about it, its not like the unemployed is high and its getting worse. The companies out there hiring like crazy, actually the problem is that there isn't enough workforce to fill the open positions in every level...

People have saved money all the previous period that they want to spend right now. Let's don't forget that Boohoo grew organically 35% in UK! and has a strong balance sheet to weather the storm.

I don't know how the SP will perform, all I am saying is that there is a real company behind the SP, selling goods that people are willing to buy independently if Russia held a military drill in Belarus.

I was listening to the great man the other day, Warren Buffet, in an interview he gave 3 years ago. He mentioned that investing is like buying a farm, you don't go on the field every day to see how much everything have grown. You have a horizon of 5 years at least and there are going to be good years and bad years in terms of the production.

I'm invested in THG, Boo and Asos after selling positions in value stocks because when I bought them, I saw an "opportunity". In hindsight, I should wait, but as Terry Smith says "They are two types of people, these that cannot predict the market and these that they don't know they cannot predict the market".

But this is my thinking... Does THG (Boo and Asos) have enough cash to weather the storm? Has demand for their goods have gone down? Mr. Market is very stingy with growth stocks this period of time, but is THG rubbish because Mr. Market today says every share worth 1.24 and great a year ago when Mr Market was willing to pay 8? Similarly for Boo, for which today Mr Market is willing to pay .89 the same price that was willing to pay 6 years ago, while just a year ago was willing to pay 4x...

The point that I'm trying to make is what Peter Lynch once told "the key organ in your body for the stock market is your stomach, not the brain. All you have to know is that it's always going to be scary, there is always going to be something to worry about, you just have to forget all about, cut it all out and all good companies have turnarounds".

Let's think this for a moment... Except the energy cost, the prices go up because people saved money during the lockdowns and they spend them now. Simple as this. People that are going to suffer more are the pentioners, but not those in the workforce, as their wages have gone up.

I am not saying that there aren't out there misfortune people, but my sense of the society the numbers aren't any worse than before pandemic...

And with some data to back my argument, the air flight companies report record bookings, if you want a new car, the waiting time to get one is something like 3 months, companies hiring like crazy, my gym is busier than ever, everyone is out and about... My point is that there is a fear factor by the news because misery sells...

Reading this article it seems that the PE conversation isn't a rumour any more, but it's really happening... I think it is a matter of time they make it public, hopefully with a reasonable valuation

Reading the article, it seems that the PE conversation

If you don't need the money and have a long horizon, then this maybe the opportunity. Like it was 1.5 yeas ago M&S, BATS, IMP, BAE, BP, SHELL etv... Investment isn't lottery ticket, but you can see if it was a good or a bad decision only by looking back in the past. So, what will be the price of THG in 2024 or 2025? No one know, but if it goes back at 8, then for me it will be a hugely profitable. Also this inflation pressures etc, if we exclude the energy cost, inflation is so high because people have money to spend!

If you don't need the money and have a long horizon, then this maybe the opportunity. Like it was 1.5 yeas ago M&S, BATS, IMP, BAE, BP, SHELL etv... Investment isn't lottery ticket, but you can see if it was a good or a bad decision only by looking back in the past. So, what will be the price of THG in 2024 or 2025? No one know, but if it goes back at 8, then for me it will be a hugely profitable. Also this inflation pressures etc, if we exclude the energy cost, inflation is so high because people have money to spend!

Let's see when this yo-yo is going to break through... It is tempting to play the swings, but the last time I did it with THG, I missed the 15% jump from 190 to 215...

@oxfordbull Yes and no... Of course, he created a mess, undoubtedly, but he unintentionally gave to some of us a great opportunity to buy or add THG in such a discount...

We have to give to Matty, his marketing material it's awesome!

And even let's say we are on another dot com bubble burst... And? A good company, we products and services on demand, will survive and thrive.

Convince a fly that honey is better than ****...

I don't understand how some people here take pleasure when this SP falls and troll the rest of us... Even if there was some exaggeration during the weekend, maybe some wishful thinking, this is because many of us, we want to see some return on our investment. What is wrong with this?

Its an investment, not a lottery ticket. This isn't an exploration company... But it is a real company with products and services on demand.

And if the price doesn't reach 300 by the end of the week, it will at some point... Onwards and upwards.