The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
thinking of upgrading to avoid the trolls.
Who's got it?
S&C Taxis
Ask for Stacey she has all the gossip.
Lead taxi driver Raj leading the consortium bid with his mates.
Also Boohoo will be buying Microsoft.
It's all but confirmed.
Yeah SC are big on Boohoo.
£10B market cap all but confirmed
Remember
There is no point arguing with a troll.
The troll enjoys it. Winding people up is their goal.
And you will get no where.
Not only that but you will actively encourage the trolls by feeding their need.
Filter.
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Don't engage.
I think viewed in the context of historic earnings and profit this appears significant.
Automation in our Sheffield distribution centre went live in late September, and is expected to drive
material cost savings and efficiencies with a five year estimated payback on £125 million of capital
expenditure
https://www.boohooplc.com/sites/boohoo-corp/files/all-documents/result-centre/2022/boohoo-group-plc-interim-results-fy23-final.pdf
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Simple.
https://www.thetimes.co.uk/article/bbc-presenter-had-secret-love-child-with-stripper-b59lpz63g
The CEO of McColls lead a rights issue with his own money.
The company went into administration 6 months later and he lost his investment. As did shareholders.
OTB is not in the same position but I personally don't attach significance to directors buying stock. Some of them are incompetent too.
maybe just reduce below 0.5% and no longer tracked
dropped 1% and not show a correcting trade?
What I think you have to keep in mind with most commentary ratings price taregts etc is the review period.
The market only reads 6 months ahead.
the next 6 months will be difficult for Boohoo.
The comments are representative of this timeframe: no more, and no less.
The comments are not representative of the company in general.
Looking at the cost headwinds it appears there are no near term growth catalysts, and crucially, sterling weakness presents new & added challenge. Exec comments indicare teasing freight cost reductions.
Boohoo are committed to capex spend on operational enhancedments and potentially more new business.
To me this spells and increase in net debt, unchanged costs and return for capability enhancements ready to supercharge FY23/4 revenue and margin growth.
My view is that this agressive stance, which I am comfortable to say is absolutely right for Boohoo, based on confidence in gross margins will not be popular in the markets.
Paired with the short selling action the share price could easily go into the low 20s.
I would view this price action as likely to be volatile, off low volume, and both transient & intermittent.
Perhaps well suited to few low ball limit buy orders to raid from the weak or those selling short.
I remain a buyer on this basis.
Online is definaely the future.
But it takes expertise. Looking into other companies who have tried to put online in the centre of their sales strategy they have failed to realise growth.
No only do I see online taking over high street I believe a small number of online hubs will dominate the market and force sale through their equity in the channel.
We are already seeing thris throught the likes of the M&S online collaboration, and failed online attempts such as Ted Baker.
I do not believe at all that all you need is a website. and those that are trying to move into this space will take years to gain equity. Boohoo is ahead of the the bulk of the UK market, and now a force in the US market.
As for Shein. the US market is big enough for a few competitors & the move to next day delivery will be enough to capture market share of bricks and morter.
back by market insiders.
huge visibility.
Interesting in the Exec Q&A the may repay the RCF later in the year but are just looking for maximum operational flexibility in the immediate term.
well I've freed up cash now & am redy to double my holding.
Listening to the live Q&A the comments from the exec team they really detailed & highlight both the extent & the transient nature of business costs. a perferct storm. for the the business to record a pre-tax profit is a miracle.
Freight costs. Cotton up 84%. Currency weakness.
The US DC lead-times sound like a genuine growth catalyst & having now listened to the comments around wholesale model I do not agree at all with Credit Suisse that this presents a weakness. To me its a significant marketing driver and the customers will end up going online the the main website.
I do think the open short position presents an undefined by significant anolomy & I will be waiting for this to close a little before I make a move.
Boo takeover of REVB?
100p breached as predicted.
Still this the market cap versus revenue & earnings are an offensive pairing. More to fall imho.