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So Credit Suisse slash their Sp target from 440p to 250p....ouch !

following any mid term hiatus is for the SP to bounce around until the next Trading Update. The Market likes to second guess how that may look and may will push the price a little higher but not much. This is where Management can be quite canny as they can’t buy into the Stock beforehand. There is also a need to drawn a line under events and move on. So we now throw the ‘kitchen sink ‘ in, shock the Mkt and get all bad news out the way...see the SP collapse, and buy in immediately afterwards. SP will invariably rise thereafter but It’s Managements way of doing a “rinse and repeat” . Brilliant.

Problem for Companies running with a high PE is the need to constantly deliver explosive growth. BOO did just that in Q1....question is can they keep it up . This Analyst has marked down their UK growth quite significantly ( Overseas shouldn’t be affected ) given current data emerging . Quote : “Meanwhile, the pace of downloads of Boohoo’s apps, particularly for the Nasty Gal brand, whose clothes have been linked to allegations of malpractice, has slowed “
The Sept. update will be very revealing....those of a nervous disposition may do well to be out by then !

Today’s news coverage ;

Philip Dunne MP said he found it "incredible" Boohoo was surprised by allegations of poor working conditions.
Boohoo had said it was "shocked and appalled" by reports that workers had been paid as little as £3.50 per hour.
But Mr Dunne suggested the firm was already aware of the issues. Boohoo said it would respond "in due course".
The firm's co-founder, and then-chief executive, Carol Kane appeared in front of the Environmental Audit Committee (EAC) of MPs in 2018 over links Boohoo "may have to illegally low pay in Leicester garment factories".
"It is incredible that over a year since the committee highlighted illegal working practices in its supply chain, Boohoo has publicly denied any knowledge of what has been happening for years," Mr Dunne, who is chair of the EAC, wrote in a letter to the company.
"It is shameful that it took a pandemic and the ensuing outrage about working practices in their supply chain for Boohoo finally to be taken to task for turning a blind eye," he said.

From an earlier post “Ignore the negative posts. Don't take them personally. Keep up with the positive posts “
Well that must be the definition of Desperation....Someone needs to start taking anti depressants !!

Well I guess if turning a blind eye to the exploitation of disadvantaged workers is viewed as ‘ethically sound’ then what’s all the fuss about. Thankfully we have ASOS to demonstrate you can produce clothing in an honourable way. No wonder they wish to distance themselves from this lot as will a few customers, those that have a conscience anyway.

price point that Lansdowne have opened their 0.58% Short position ! Wonder what prompted the sudden move.....forward trading/ lower margins or a closer look into the accounts ? . Irrespective their analysis will have been rather more searching than most here. All we need now is for Carson Block to turn up !!

Comment from Nick Beighton( boss of ASOS ) this am “ Asos had already dramatically reduced the number of suppliers in Leicester after its own audit processes raised concerns two years ago. Asos has temporarily suspended Boohoo from selling brands on its website. He’s clearly trying to distance itself from the backlash.

It seems a few are surprised BOO isn’t racing ahead, unlike the wider Market. Comments like this clearly seem to have had an impact “ Analysts at Shore Capital also reiterated advice to sell Boohoo’s shares, saying the allegations were likely to mean “growing difficulty” for ethical investors.” . Unless BOO gets its act together quickly the fast money will soon be gone .

Do you really think BOO are currently that bothered with the SP. Lets face it they milked investors for c.£200m in May at 340p. for M&A activity ( then Kamani promptly past over £270m for the balance of his sons business ), plus Co founders sold 50m shares in Dec at 285p so you have to ask yourselves , who are the mugs here ?. Of course should they get lucky again with a rising SP they’ll no doubt tap you all again.

Unfortunately for BOO their name with serious Investors has been tarnished, not their customers who generally won’t care. There remain quite a few serious questions for the BOD to answer , which may in time get resolved but until then they remain soiled goods for most.

HI Gggg......rather than heckle do you have something of factual interest to offer. Like how BOO intend to spend this years high CapEx. or similar ? No thought not. And no I didn’t refer to a ‘massive’ short...only significant, and that’s the disclosed position, the threshold level you’ll know , but it only takes a few hundred lower positions to place BOO up the league. Anyway don’t bother replying , you offer no valve to me so your filtered .
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No idea.....its not a killer blow for them, even if they were to lose, but as an investor you need to fully understand the Company, both positive and negative and any liabilities. Unfortunately as others have stated many posters here merely wish to offer SP guesses alongside Buy Buy or Sell Sell....its a wasteful exercise. Far better to exchange factual detail both good and bad, in that way you’ll get to know why for example , a significant Short remains outstanding !

Perhaps they were hoping it would detract from the potential $100m USA Class Action lawsuit filed
against them, shortly after BOO acquired 100% of PLT ....for misrepresentation of pricing . Seems someone didn’t understand US trading standards at the time which could be a costly error !

A tip....if you go onto “I saw it first.com” you’ll find quite a few similar items as BOO sells, including cheap face masks. Does that site look familiar ...well it’s run by Kamani’s brother ...so much for family loyalty !!

Not sure too many BOO customers had a clue or were even bothered how they managed to flog their gear so cheaply. For some labour exploitation won’t bother them, but for some the recent exposures will. The investigations specifically centred on Leics. won’t be over in a week or so. There are numerous avenues to explore. BOO have hired a shrewd QC to investigate....they may regret that, who knows...but in the meantime you can’t say their PR exercise has been an overwhelming success.

I think many here are underestimating the reaction BOO could receive from their ‘loyal’
fan base. Social media is their gossip forum and for many, ‘Influencers’ their guide. We’re seen the following that one young climate activist managed to quickly garner around the world....it became fashionable to join her crusade. Don’t dismiss the young so readily....BOO’s market is global and if the fire is lit, no one will be able to put in out , fast enough. The young seem to relish the voice SM has provided them and love a worthy cause to get behind. No mistake this story still has legs.

Tiger, that’s a fairly bleak scenario you paint. Agree the PE looked excessive but that’s not unusual for a growth stock . Whilst BOO currently digest their current problems a more realistic setting will
likely be settled upon. The March lows below 150p is a worrying ‘target’ here. One has to ask what has changed since then to drive up sentiment , given we now have an economic disaster on our hands with unemployment ballooning and an unknown tax burden to land somewhere. If that all gets computed into BOO’s share price, then all bets are off, albeit I don’t see an ultimate failing unless an unexpected development occurs here.

Given its dominant US investor base it’s no surprise they took swift action with BOO.....the mere mention of the word ‘slavery’ ( correctly applied or not ) is pretty toxic right now. For this reason they no doubt will be looking for specific actions taken, before reinstating the platform.

Also good to see App Developers engaging with its Marketplace , up from 200 at yr end to now over 1000. Can only bode well for them. At some point the Mkt will catch onto Bango’s growth story.