Thanks Tradingdutchman, liked this part:-
Musk is also acutely aware of the competition, whether it’s QuantumScape, the 10-year-old San Jose, California, startup backed by Bill Gates (another Musk antagonist), or Lucid Motors, the EV startup founded by the former lead engineer on the Model S. QuantumScape claims its lithium-ion batteries can extend the range of electric vehicles by 50 percent. And Lucid says it recently unveiled sedan, the Air, can achieve a range that is 20 percent better than the best Tesla.
EV batteries are no longer the sole province of Tesla. Legacy automakers like Volkswagen, General Motors, and Ford are funneling billions of dollars into EV development, and batteries will play a major role. Musk needs to seize the moment if he’s to remain in the pole position, LeVine said.
Kencarv - absolutely, however, I like to take in everything around the shares I hold. I thought it was interesting and thought others might find it interesting too. Maybe not. I like to read and research far and wide around the shares I hold. Sometimes, I find great little nuggets of information doing it this way.
Loved this comment about Boohoo on here from poster called Buffettslovechild so have copied it below again for those who may have missed it. This is Part 2 of it.
Estimate of the Intrinsic value price of a Boohoo Share.
1) 5 year EPS growth rate estimate from yahoo finance (analysis page) is 29.9% per year. From the balance sheet we can see that equity has grown from 85.5million in 2015 to 569 million in 2020. That is 46% per year compounded growth.
2) The 5yr historic PE from MSN Money price ratios is High of 70.86 and low of 37.69 is 52.7 average.
3) Current EPS (TTM) is 5.3p x growth rate 1.3 x 10 yrs = 69. Therefore the estimated EPS is 69p in 10yrs.
4) The earnings per share of 0.69 x the future PE of 52.7 gives a share value in 10 yrs of £35.88.
5) If you take 15% profits year on year from this sum you achieve a current fair price of £7.71
6) discount this by 50% for a margin of safety purchase price of £3.85. Basically you can buy this all the way up to £3.85 and still get a fantastic bargain.
I have run this calculation on a multitude of companies, and none meet the criteria. If you can find any companies with a solid history of exceptional trading like Boohoo that have lost substantial value through no real fault then please let me know of them.
Loved this comment about Boohoo on here from poster called Buffettslovechild so have copied it below again for those who may have missed it. This is Part 1 of it.
I am interested to know if anybody here is a value investor. I follow the Buffet style Investing as best i can which is really difficult because there are virtually no companies that meet the criteria at present. In fact, Boohoo is the only business that I can find. Has anybody on here worked out a number for the intrinsic value that they can share. For clarity, Buffet and Monger calculate the amount of cash that owners (us) can take out of a business and then discounts that back to find a fair current day value of the stock and then look to buy with a margin of safety.
Intrinsic Value of Boohoo
The calculation method I use is as follows;
1) Work out the expected future earnings per share (EPS) growth rate of the company
This is based on either the analyst's evaluations on say, yahoo finance for 5yr growth, or on previous year's performance based on equity growth, whichever number is the most conservative.
2) Work out the future Price to Earnings ratio (PE)
This is taken as either the average of previous 5yr high and 5yr low. Or double the growth rate, whichever number is most conservative.
3) Estimate what the Earnings per Share will be in 10yrs time.
Take current earnings per share and multiply by the EPS growth rate and number of years (say, 10). This will give the estimated EPS in 10 yrs.
4) Calculate the share value in 10yrs time
This is basically the estimated future Earnings per share x the estimated future PE value.
5) Discount to find todays Fair value for the share.
Discount this estimated share value back to the current day but take your required annual profits required out each year. (say, at 15%)
6 Reduce the sum to have a margin of safety I think 50% is acceptable.
This is because we know that everything may not go as planned. This is basically the maximum we are willing to pay per share as a new owner of the company.
I, for one, think it's all about revenue. Some investors will be waiting to see if Boohoo's revenue has been affected in any way by the so called allegations against suppliers to Boohoo. Personally, I don't think it will be because people who buy from Boohoo don't seem particularly interested in these so called allegations. Regarding the end of the furlough scheme this will also be a plus for Boohoo because people will buy cheaper clothes. This happened in the last recession when Primark beat everyone else's revenue because people still bought clothes only cheaper clothes. Young people always buy clothes. What did you spend your money on when you were that age? They will buy them to be on zoom too. Young people find ways round everything whether it be on zoom or tiktok or instagram or whatever.
Well, as usual, nobody knows what will happen with the share price. Lots of educated opinions.
I'm so glad, I don't trade shares. I research and find great growth shares like Boohoo, buy them and hold them through every up and down. Whilst I hold them, I research them, the markets and the news every day, so I'm confident to keep holding them.
Kencarv - the relevance was to Tesla. Also, Elon Musk owns SpaceX. In case anyone was interested in finding out more about Tesla and SpaceX with the CAP-XX patent court case against Maxwell owned by Tesla and Tesla's big battery day soon.
For those of you who may not know already, Boohoo's half year/interim results run from 1 March 2020 to 31 August 2020. We know the sales from 1 March 2020 to 31 May 2020 were up 45% compared to the same period for 2019. We know this from the quarterly trading update released by Boohoo on 17 June 2020.
So, e-commerce/online sales showing strong growth in the USA. Good news for Boohoo's forthcoming half year/interim results due out on Wednesday 30 September 2020.
Expectations are high for Nike (NKE) heading into the FQ1 earnings report, with the China business expected to show strong growth and e-commerce continuing to support sales in the U.S.
The shift by consumers to digital payments from cash during the pandemic is seen benefiting a long list of companies into the future. Digital pure plays PayPal (NASDAQ:PYPL) and Square (NYSE:SQ) are seen as long-term winners, as well as card networks/payment processors like Mastercard (NYSE:MA) and Visa (NYSE:V), Global Payments (NYSE:GPN) and Fidelity National Information Services (NYSE:FIS). Albertsons (NYSE:ACI) is profiled favorably as an undervalued sleeper and Nvidia's (NASDAQ:NVDA) deal for Arm Holdings is broken down in detail. If all goes well, Nvidia is seen becoming the most important chip maker in the world.
SpaceX's (SPACE) SN8 Starship rocket will take a test flight sometime next week, with plans to soar up to 60K feet and then return to Earth in a controlled landing. The launch will mark the first time three Raptor engines will be tested together as a single unit. SpaceX is tracking toward a final version of Starship that will feature six Raptors and be capable of carrying up to 100 people to the moon, Mars and other distant destinations. While SpaceX isn't a publicly-traded stock, the company's high-profile launches have helped draw interest into space-related names like Maxar Technologies (NYSE:MAXR), Virgin Galactic (NYSE:SPCE) and the Procure Space ETF (NASDAQ:UFO).
Tesla (NASDAQ:TSLA) holds its annual shareholder meeting on September 22 to be immediately followed by the highly-anticipated Battery Day event. Expectations are that Tesla will reveal plans to ramp up battery capacity, show off improved cell chemistry/performance and highlight how the cost curve could spiral downward. Wedbush Securities expects a home run from Elon Musk and gang. "We believe the company is getting closer to announcing the million mile battery at this highly-anticipated event. In our opinion this battery technology will be very advanced, potentially last for decades, withstand all types of weather/terrain, and be another major milestone for the Tesla ecosystem," writes analyst Dan Ives. Panasonic (OTCPK:PCRFY) will be on edge to see if Tesla tips off a goal to become battery independent over time. Other stocks to watch around the event include the usual EV auto suspects like Nio (NYSE:NIO), Li Auto (NASDAQ:LI), Xpeng (NYSE:XPEV) and Kandi Technologies (NASDAQ:KNDI). There is also Glencore (OTCPK:GLCNF,OTCPK:GLNCY) to keep tabs on just in case Tesla pulls out a wildcard with its cobalt plans. Strap in for some fun.
With more meetings now being conducted online, turn your focus to what can be seen on the screen: necklines, jewellery, accessories and chic make-up.
Finding great growth shares like Boohoo and holding them long term is about freedom for me. It's not all about money for me. It's about having the freedom to live my life the way I want to live it, to love being with the people I love, to spend time with them, to have fun with them and to enjoy being with them. You can't put a price on that. Holding great growth shares like Boohoo gives me time and less stress to do exactly that. So, for me, it's also about what kind of life you want for yourself.