Member Info for Paulleydee

Just spotted this filed from Reuters news agency earlier this week:

LONDON, May 24 (Reuters) - Boohoo has reached a final settlement over a U.S. class action claim alleging the British online fashion retailer's promotions in California misled shoppers, it said on Tuesday.

The group, which sells clothing, shoes, accessories and beauty products aimed at 16- to 40-year olds, had agreed terms for a preliminary settlement of the action in November.

Boohoo said the settlement is without admission of liability and within its existing legal provisions, which stood at 17.8 million pounds ($22.4 million) as of Feb. 28.

The settlement remains subject to review and approval by the United States District Court for the Central District of California.

Analysts at Jefferies stated the news was positive in that the issue is resolved and covered by existing provisions.

Panmure Gordon issued this note today, with a headline “Boohoo - Prospects Look Good”

“We remain buyers with a reduced target price of 120p reflecting near-year forecast reductions.
Despite the share price collapse we continue to believe that Boohoo has strong prospects once overall conditions become more settled.
These results show that its brand acquisition strategy has begun to produce some clear contribution. There is more to go for in that area.
The company itself seems to us to still be in the new 'new reality' phase where it is coming to terms with operating in a tougher environment than it thought possible even six months ago.
Capital markets tend to recognise risk sooner than management generally in our experience. But this can offer opportunities if investors are happy with this model.
We cannot see much point in buying physical-based retailers except on a trade basis unless they are small or more based on a defendable service proposition.
So long as Boohoo can manage its way out of the post-Covid period its prospects look good to us".

Now watch this baby fly!…..

Interesting...

https://www.ig.com/uk/news-and-trade-ideas/3-m-a-target-shares-to-buy-220430.amp

Interesting....

https://www.ig.com/uk/news-and-trade-ideas/3-m-a-target-shares-to-buy-220430.amp

Times article

https://www.thetimes.co.uk/article/citadel-reinforces-its-position-in-asos-with-light-on-the-horizon-mqwmzsg3q

I had a feeling this would go from 5 per cent down to 5 per cent up on the day. FTSE funds and investors will now buy in, now that we know there are no scary hidden surprises in those results.
Could now do with a few director buys too
I think BOO should also leave AIM
Both ridiculously undervalued

Article just out…Shein could make a bid for Boohoo, one of the cheapest companies in the UK…

https://www.investingcube.com/boohoo-share-price-could-benefit-from-shein-success-shares/

A note put out this morning. Asos could “rebound explosively”…

https://www.fool.co.uk/2022/04/04/2-beaten-up-uk-shares-that-could-rebound-explosively/

Ridiculously oversold....

https://seekingalpha.com/article/4497881-asos-improving-fundamentals-make-it-attractive

https://moneyweek.com/trading/604552/why-its-time-to-buy-shares-in-asos

Moneyweek article appeared an hour ago

Boohoo share price is now around the point it ended at on the day they first went public, back in 2014.

In theory, at that point, the entire value of the company was equivalent to around 8 years of revenue; today it's worth equivalent to around 8 months of revenue.

Utterly ridiculous and I think as long as results in line with previous guidance tomorrow this will fly.

Shorters are closing and Norges tripled their stake last week.

Speaks volumes.

Could be that many have now realised this is simply ridiculously cheap, as is Boohoo:

https://www.marketbeat.com/instant-alerts/otcmkts-asomy-consensus-analyst-rating-2022-03/

Today:

https://www.drapersonline.com/news/fashion-sales-continue-to-rebound

From Bloomberg tonight:
The suspension of shipments isn’t expected to have a big financial impact on the U.K. retailers. Burberry’s exposure to Russia is less than 1% of sales, according to the company’s spokesman. Asos’s sales in Russia and Ukraine likely make up less than 5% of sales, estimates Tony Shiret, analyst at Panmure Gordon.

Boohoo’s Russian operations are a slice of 5% revenue coming from a group of countries that predominantly includes Australia, New Zealand and Canada, according to the company’s results.

From Bloomberg tonight:
The suspension of shipments isn’t expected to have a big financial impact on the U.K. retailers. Burberry’s exposure to Russia is less than 1% of sales, according to the company’s spokesman. Asos’s sales in Russia and Ukraine likely make up less than 5% of sales, estimates Tony Shiret, analyst at Panmure Gordon.

Boohoo’s Russian operations are a slice of 5% revenue coming from a group of countries that predominantly includes Australia, New Zealand and Canada, according to the company’s results.

https://www.thisismoney.co.uk/money/share-investing/article-10555387/STOCKS-WATCH-Share-plunge-sparks-talk-Boohoo-private.html

I think the results could suddenly appear tomorrow with an RNS - there were rumours last week in media circles of talks and it appears this could be what that was all about. Something definitely going on here. Not talks for a buy out but this Kamani guy has been putting a deal together all along but to take it private. Struck me as very odd he would do the deal for workers to get those shares recently. Now they will benefit big time.

Daily Mail Financial section this morning:
TALK BOOHOO TO GO PRIVATE
Boohoo co-founder Mahmud Kamani recently excitedly posted on social media about the birth of his first grandchild but his business baby is said to be on his mind too.
City insiders claim the online retailer's chairman is eyeing a deal to take the firm private. He set up the business in 2006 and oversaw its growth into a fast fashion powerhouse.
Less than two year's ago the stock was at a record high of £4.13 as high street rivals closed due to covid.
Investor concerns over governance and labour conditions at its Leicester suppliers have been compounded by a pre-Christmas profit warning. The stock is now at 84p, valuing Boohoo at £1billion.
The pluge has led to Kamani thinking about teaming up with a private equity firm.
A source said "Mahmud has been frustrated that investors have focused on the governance concerns rather than the fundamentals of the business".
Boohoo declined to comment.

Note, "declined to comment" rather than deny the suggestions. When a firm is taken private, the firm will pay way over the current value of the stock but of course once word is out like this the stock will rally anyway when shorts rush to close.
The most obvious benefit for shareholders is that buyers usually offer a price above the company’s existing share price. According to data from AJ Bell, the average premium paid in 2020 and 2021 for UK stocks is 37%, which is a decent return for many existing shareholders.