Member Info for Okehurst1

Pedro, I could be wrong so am not saying Boo doesn’t carry risk but my opinion - that’s all it is - the risk / reward is a decent bet at these levels that the cost savings / COGS / automation etc … all come together alongside USA site opening up and test /repeat post Covid being effective

Mike Ashley has his finger on the pulse of the consumer, him buying into Boo adds weight to the above

Pedro, let’s see who is right when we get the TU

We had £50M people / other costs ripped out last year and Boo said more this year as automation increases

Side note … notice San Fran LA agreed autonomous taxis can go live yesterday, how long before we get same in U.K.?

Ditto spills into commercial distribution ? End to end limited human interaction ? Companies need to make the big investment in Robots to have a chance to survive

Suggest automation is a key factor, you can’t scale online without it - Put aside marketing / design etc

Boo Sheffield ‘ bots’ can handle 850,000 items a day, USA will be the same, its impressive

The barrier to entry to upscale efficiently is high due to the capex required, in Boo’s case it’s £175M last year / this alone.

T4G maybe Pedro is Short or just weird but who cares?

The poster offers no data to this BB be that bearish or bullish as such we can filter and we are missing nothing ? That’s my take.

Data moves the share price and maybe technicals picks up the animal spirits of humans trading ?

Either way it’s moving our way (longs) and personal view think the Shorts are exposed here.

Non of us PI’s move the share price

If Pedro wants to post 000’s of negative posts a month and is not even invested in Boo, appreciate its strange behaviour and a waste of time in my mind but who cares?

Data starting to tilt in favour of the Longs

The Doomsayers got it wrong again

GDP grew 0.5% in June and 0.2% across Quarter 2 (April to June) as a whole.

In June:

▪️ services grew 0.2%

▪️ production grew 1.8%

▪️ construction grew 1.6%

https://www.bloomberg.com/news/live-blog/2023-08-11/uk-markets-today-gdp-boe-pound-ftse-100-and-bond-market-coverage

… and the Kamanis buying as well

Put aside us PI’s with dry powder

scb, agree they focus on growing a global retail brand

back of *** paper stuff , they might be able to secure 6% on the £150m, costs them £9m a year, it’s tax deductible

10% buyback increases nav/ eps same time

£100m extra cash give comfort to credit insurance as and when.

by product the shorts vacate, the employees like it as their ebt holding increases in value, to top it all and possibly the biggest reason for the bod, they head off ashley who could end up being a right pain if he keeps adding

we didn’t buy the real estate in pennsylvania for example, we rented, same goes we want to be a global leader in what we do, fast fashion fast beauty, leave property investment to funds that focus on that.

Just on the property

Sale/ lease back takes the rent into account, it’s a coupon yield

IF Boo bought back shares /cancel we increase NAV per share ditto EPS, but back £50M (10%) and add £100M cash in hand

My opinion

T4G you pretty much nail it

Hi Moody

I think Boo BoD will / need to pull a rabbit out the hat

They have serious unencumbered real estate on their balance sheet, Boo ain’t a property company

Ideally they sell the property ,sale /lease back and buy back shares with the proceeds.

Bloomberg view

https://www.bloomberg.com/news/live-blog/2023-08-10/us-cpi-for-july

FT comment

The monthly figures for both headline and core inflation were in line with Wall Street expectations, while the annual figures were below expectations’

Looks like USA economy is going to have the soft landing

Inflation numbers just out and slightly under market expectations

Shelter made up 90% of total, market expects this to fall and just maybe the Fed holds in September, Bond yields off a tad

Boo /Rev B do $1/2B in USA and Boo enjoy a 58% margin with £2B capacity, timing is looking good for their USA expansion

Not much volume today

Smithy, not sure if you can answer

Any link to confirm same or do you work for Boo ?

Fatman

My view is 100%, in at 35p average just sitting tight.

Who cares if a poster thinks this is going to 14p ? Non of us PI’s move the price

It’s an opinion - but a bet all the same - , I think I will bag from my entry price and probably double bag before selling 50% let the rest run, happy to wait.

Am sure the 600 staff at the USA fulfilment centre are doing something

Wolf, personal opinion

The Kamani family had to do something as Ashley was nicking a stake on the cheap

Boo share price has been hammered down 90% even though the Bod have invested heavily, the recent capex spend relative to £m/cap is case in point

Boo have of course been taking advantage by purchasing shares in the open market for their EBT it’s a watered down share buyback as they get reissued one day but at least they are off market so to speak

Suggest Boo need to pause expansion and utilise the £4B capacity, whilst we wait that to happen they leave themselves exposed to operators like Ashley

If Boo can hit 6% 2024 they have the FCF to do a share buyback, it’s good long term for the shareholders look at Frasers as an example.

Big Mike is in the background they still need to do more to see him off

Boo BoD needed to do something

This is just stage 1

A share buyback crushes the Shorts and same time stops Big Mike - make him pay

It’s not dead money either

Our NAV / EPS goes up pro rata as well, is a no brainer

If Boo Bon keep pumping FCF into buying assets and not generating returns for shareholders the share price will suffer as it has done

Gloves off time