The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Scb - still desperate by posting my old posts from over two years ago.
When are you going to learnt that Boohoo is no longer the Boohoo of more than two years ago?
Boohoo is now loss making, fierce competition from Shein on price. Regardless of Boohoo's diversification, Boohoo still makes the majority of their revenue from fast fashion. This is obvious to me because Mahmud Kamani has already said it's all about price.
Boohoo are throwing everything to reduce their prices to compete against Shein.
When will you see what's at the end of your nose?
For the sake of Boohoo, let's hope ASOS don't delay their results beyond Wednesday, 1 November 2023.
Book value share price is a good starting point to see what a share is worth. If you don't understand that, then you shouldn't be investing in shares.
Yes, we all know other things can come into play. Book value share price is a good starting point.
WeeWee - you don't even understand what you're invested in. Next is upmarket fashion compared to Boohoo. Please try to read posts in full and come back with arguments and debate. Insults are lazy retorts. Generalist statements are the same.
All these say to me is you don't know your shares.
Stay away from the chatboards and do some proper reading and research. You're too focussed on what you think you know, balance sheet.
Read some books on what real investors look for beyond the balance sheet.
Real investors don't trust anything a company says and are able to read between the lines of what's been said.
Your posts waste everybody's time.
Stop bothering me because you don't have a clue. Even with the balance sheet you get things wrong.
You assume everybody is like you. We're all different and don't operate the same as you. Try thinking outside your little box, you might learn how to make money from shares.
Boohoo's book value has been reduced from £400m to £380m and with about 1.269bn Boohoo shares in issue puts the Boohoo book value share price at about 29.9p.
Boohoo and ASOS using Frasers stores sounds more like it because Frasers can make money from them by charging them to do this.
I can't see Frasers wanting to buy two loss making companies like Boohoo and ASOS.
Qube Research increased their short on Monday 23 October 2023 from 0.99% to 1%. An increase of 0.01% which is about 130,000 Boohoo shares.
Systemica went down from 0.57% short to 0.47% short, i.e. 0.10%, on Monday 23 October 2023. The 0.47% short doesn't appear on the shorts now because it's below the threshold of 0.50%
A reduction of 0.10% is about 1.3m Boohoo shares.
Uncrossed trades (UT) are done by placing how many shares you want and at what price. It's completed over a short space of time at different times every day, so there can't be any manipulation of the UT.
Plus it seems to me that Boohoo are making most of their revenue from fast fashion labels and not so much revenue from anything else.
Hence why Shein is Boohoo's biggest threat because Boohoo's majority revenue is from their fast fashion labels.
Mahmud Kamani said at the interim results that it was all about price. My taking from this is that Shein is a huge threat fro Boohoo and Boohoo are desperately trying to reduce their prices to compete against Shein.
Revolution Beauty's Book Value is about minus £13m and it's book value share price is about minus 4.24p
With book values like that, REVB is well overpriced at 20p.
Next are upmarket fashion sellers and not fast fashion. Plus they have click, collect and return through their shops which customers seem to like.
The reason ASOS and Boohoo are doing badly is because of the competition of the likes of Shein.
Shein can price their items lower than ASOS and Boohoo.
This is why Boohoo are throwing everything from cost cutting to reducing inventory in order to be able to reduce their prices to compete against Shein. It is obvious from this for me that Boohoo's biggest threat is Shein
It may work. It may not work. Will Shein then reduce their prices further and there's a war on price? Shein have much richer backers and probably could outlast Boohoo in a war on price.
ASOS delaying their results spooks investors in Boohoo too.
More fantasies and hope. Fantasies and hope don't make you money. They lose you money, too often.
Boohoo's earnings per share (eps) have been going down from fy2021 and are expected to continue to go down until at least fy2026.
This is why the Boohoo share price is where it is and could go lower.
The only reason the Boohoo share price is holding up is because Michael Murray CEO Frasers is buying in the hope he'll make a bit of money on them if Boohoo can turn themselves around.
Institutional Investors and the majority of investors won't touch Boohoo shares because they see them as too risky.
Book Value gives you an idea of what the Boohoo share price is really worth. That is 26p.
Michael Murray CEO Frasers is buying Boohoo shares in the hope Boohoo can turn itself around and he'll make a bit of money, imo. Also I would think Frasers will be looking to sell stuff on Debs and ASOS and want a good deal i.e. Frasers want to pay the least commission possible for selling their items on Debs and ASOS.
Frasers doesn't want to buy loss making companies like Boohoo and ASOS . What's the point? Frasers don't have the expertise to run these. Basically Frasers are hoping they'll make a bit of money if Boohoo and ASOS turn themselves around and Frasers get a good deal for selling their products on Debs and ASOS.
Boohoo have stated they don't know when Boohoo will turn around. Plus Boohoo know they still need to reduce their prices to get any growth. Hence why Boohoo are doing their best to reduce costs further by £125m to reduce their prices. We know this because Boohoo have already stated guidance of £70m debt for fy2024. The competition now is fierce from the likes of Shein and Temu.
Boohoo have to compete with them on price and getting their prices down below Shein and Temu if Boohoo are going to achieve any growth whatsoever.
It's not just price, it's speed and it's the product too. Boohoo have a huge mountain to climb to get back to growth. They may do it. They may not.
Boohoo shares are a huge risk. Michael Murray CEO Frasers can afford to take the risk for Frasers. It's not his money and he's probably being paid a hefty salary so he's well cushioned.
This is why the Boohoo share price is at 30p because only those who are big risk takers will buy Boohoo shares.
Hence why the institutional investors aren't buying them and not many private investors are buying them. Only those who think Umar Kamani or Michael Fraser CEO Frasers are worth following. These people can afford to take big risks. So never follow them into shares because they can get them wrong too.
Look at Boohoo's buying of Revolution Beauty Shares. In my view now, certainly not a good investment for Boohoo when Boohoo was already loss making.
Always remember shares can go down as well as up and you can lose everything on your choice of shares.
For me, this is the time to be in cash and not in AIM shares. Too many headwinds for the likes of AIM shares at present. Cost of living crisis, interest rates, worldwide economies, wars, oil price, earnings per share (eps) going down even for the likes of TESLA. Cost of living is hitting Tesla too.
Investors look to invest in companies which have rising annual earnings per share (eps).
Boohoo's annual eps has been decreasing since 2021 and is expected to continue to decrease until at least fy2026. ASOS is the same, annual eps has been decreasing since 2021 and is expected to decrease until at least fy2026.
Boohoo and ASOS have the same problem which is too much competition. On top of too much competition for Boohoo and ASOS, cost of living is also hitting them badly.
Putting your head in the sand won't make these problems for Boohoo go away.
Stockopedia have Boohoo with an estimated net loss for fy 2024 at about £20m and an estimated net loss for fy 2025 at about £1m. Boohoo aren't going to make a profit, albeit maybe a small profit, until at least fy 2026.
Stockopedia take the average of all brokers' figures to get to these estimated net losses.
Hope won't make you money. Reality will hopefully protect your hard earned capital.
Boohoo is not going to be taken over by anybody imo.
Boohoo has a book value of about £400m and has guided it will have debt of about £70m for fy 2024. This means Boohoo's book value is about £330m. There are 1.3bn boohoo shares in issue so boohoo share price is worth about 26p.
Who is going to buy Boohoo? Cost of living and too much competition are affecting Boohoo greatly.
Boohoo are hoping to reduce their costs by £125m which they're going to use to reduce their prices because they've stated Boohoo will have debt of about £70m for fy 2024.
Boohoo have reduced their revenue guidance for fy 2024 from flat to 5% down to 12% to 17% down. The future is not bright for Boohoo. Boohoo have stated they don't know when there will be a turnaround for Boohoo.
No-one knows how much of the £325m revolving credit facility Boohoo will need to use over the next two years.
Try to look at the negative issues for Boohoo and be realistic about Boohoo's future. Hope will only lead to continual disappointment.
Sosandar down over 5% today because of the profit warning in their latest results this week?
Sosandar are nearly 50% down this week.
Looks like the cost of living crisis may have hit Sosandar badly, as well as Boohoo.
Aarin Chiekrie, equity analyst, Hargreaves Lansdown: “ASOS has had a tough time lately. Fourth-quarter sales were down 15% in last month’s trading update as a wet July and August drove a slowdown in the UK clothing market. Active customer numbers also slipped 9% lower across the full year, to 23.3m. That’s given investors plenty to be concerned about. If sentiment is to improve, ASOS’ full-year results next week are going to have to show some early signs that the ongoing transformation is bearing fruit.
The drive to trim inventory levels has made good progress so far, down around 30% year-on-year. But the discounts used to help clear this excess stock have hurt profits, and that action looks set to continue into the new financial year with more deadwood left to clear. That’s driving expectations that operating profit will land towards the lower end of the group’s £40-60m target range. How much longer until discounting the excess inventory ceases to be a drag on profit margins is a key question investors are hoping to see answered next week.”
How will these results affect Boohoo?