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Boohoo's book value is about £400m and with £70m debt, that makes Boohoo's book value about £330m.
There are 1.3bn Boohoo shares in issue, so there'll always be a big free float.
My guess is Michael Murray CEO Frasers who is the one buying Boohoo shares is hoping Boohoo will be able to turn themselves around and he will make a profit on the Boohoo shares he has bought for Frasers.
Frasers have shares in Boohoo, ASOS, N Brown, Next, AO World, Currys, Mulberry and probably many more.
For me, Frasers probably want to be able to sell products from Missguided and ISawItFirst through Debenhams and want to be able to do so without having to pay too much commission for them.
It seems to me Frasers make their money on Sporting goods hence why they want to expand this. Why would they want to expand elsewhere when there's so much competition for Boohoo?
Boohoo have already reduced their prices by putting all their cost cutting into reducing prices and their revenue is still going down. Boohoo are hoping to make £125m from cost cutting for fy 2024 which will be going into more price reductions to compete. Boohoo have given guidance of £70m debt for fy 2024 which means the £125m cost cutting savings will be going into reducing their prices further to be able to compete in such a competitive market.
My posts are about trying to inform everyone because it looks to me like people don't do enough reading and research on Boohoo.
No-one knows if trades are buys or sells. The London Stock Exchange doesn't allow buys or sells to be recorded. So all websites including this one, london south east, have to guess and they are only guesses. Never depend on them at all.
Boohoo have drawn down in full a revolving credit facility of £325m and in their recent guidance Boohoo expects to be in debt of £70m for fy 2024. This means Boohoo will have used at least £70m out of the £325m. No-one knows how much Boohoo will need to use from this revolving credit facility over the next two years.
Come back with argument and debate and not just generalist statements.
SOS has gone down a further 10% today because yesterday's update is being seen as a profit warning.
Frasers already have shops.
Boohoo is loss making, revenue is declining, active customers are declining, debt is rising. Boohoo have drawn down in full a revolving credit facility of £325m.
For me, Boohoo is not worth taking over by anybody. Too much competition in the online fashion market for the likes of Boohoo. Boohoo themselves stated in their last update that the cost of living crisis had hit them badly and they can't see any turnaround. Boohoo also decreased their revenue guidance for fy 2024 from flat to 5% down to 12% to 17% down. It looks like the Christmas season is not going to be good for the likes of Boohoo.
Nobody knows for sure what are buys and what are sells. The London Stock Exchange doesn't allow the recording of buys or sells. So buys and sells on this London South East platform are guesses and only guesses by their system. Never depend on them at all.
The London Stock Exchange has restricted trading of hundreds of stocks while it investigates a system “incident”.
Only FTSE 100, FTSE 250 and IOB (international order book) stocks are available for trading, the group said.
However, trading of all other stocks has been paused while the London Stock Exchange investigates the incident.
The move affects stocks in hundreds of companies, including Asos, Deliveroo and Boohoo.
The FTSE 100 continued its decline following the announcement.
The blue-chip index closed 1.17pc lower at 7,499.53.
The London Stock Exchange has declined to comment further.
"Whilst there are points of encouragement from today's figures, the global macroeconomic outlook is still uncertain and emerging tensions in the Middle East could have real consequences on commodity prices including the price of oil which will have knock-on effects for inflation in the UK."
From investing.com
Sosandar well down on news it is going to open bricks and mortar stores.
Cost of living will affect Christmas season so online retailers not expecting to do well. Hence why Boohoo dropped their full year revenue guidance from being falt to 5% down to 12% to 17% down.
I think the shorts will be here for a long time to come, increasing and decreasing as they go.
Come back with arguments, debate instead of being lazy.
Come back with arguments, debate and not generalist statements.
This is novice investors buying Boohoo shares because of all the media about Frasers, Mike Ashley increasing their stake in Boohoo.
Frasers bought Boohoo shares in June and they've gone down from there. They went up for a little while because of all the media stuff then about Frasers etc.
Unfortunately novice investors don't do their homework and just buy Boohoo shares in the hope they'll rise. When the novice investors dry up, Boohoo share price goes down and the novice investors sell up. It's a pattern.
Boohoo are making losses, revenue is declining, active customers are declining, debt is rising. Boohoo have already drawn down in full a revolving credit facility of £325m and nobody knows how much of this £325m Boohoo will use in the next 2 to 3 years.
There's too much competition out there now, Shein, Temu, Amazon selling clothes, bricks and mortar like Primark and TK Maxx.
Competition to Debenhams is Frasers itself as well as Next, Marks and Spencer, John Lewis, etc., etc. who have bricks and mortar as well as online. Why would Frasers want to buy Boohoo for Debenhams when Frasers is competition to Debenhams?
Frasers have about 37% of Mulberry and they've no intention of buying it.
It amazes mw how people on here don't consider why Frasers wouldn't buy Boohoo and only consider why they might buy Boohoo. This sounds like desperation.
No-one knows if the US Distribution Centre will be successful or not?
Online retail like Boohoo has too much competition now. It'll take years to turn it around.
Https://www.retailgazette.co.uk/blog/2023/06/frasers-group-own/
Worth reading in full to see what Frasers own, what worked and what didn't.
Frasers has made no official comment on the stake-building recently, although CEO Michael Murray did say that he’s the one in the driving seat of the current round of share purchases.
From the link:-
People close to the situation said, however, that it represented an important step towards Frasers' ambition of becoming the leading sporting goods retailer in Europe, the Middle East and Africa.
The deal has the support of both Adidas, the German sportswear giant, and Nike, its American rival, one of the people added.
Their endorsement is said to be a reflection of the momentum that Michael Murray, Frasers' chief executive, has generated behind his 'Elevation' strategy - a reference to his plans for digital innovation and investment in the group's stores.
It looks like Michael Murray, CEO Frasers, may indeed be pulling the strings and not Mike Ashley.
Https://uk.news.yahoo.com/frasers-snaps-sportscheck-pitches-adidas-173100236.html
Https://www.drapersonline.com/news/boohoo-turnaround-on-track-despite-losses#:~:text=John%20Stevenson%2C%20analyst%20for%20specialist,needing%20an%20entire%20new%20wardrobe%2C
Your article is from here where analysts don't expect any profit from Boohoo until 2025, nearly two years from now.
Two years to make a profit, hopefully.
For me, this says not a good investment because it's too long to wait for a turnaround and it may not happen. The risks outweigh any possible rewards. Hence, why the Boohoo share price is where it is and could go even lower.
Debate and argument preferred and not lazy insults. Try at least to prove with some arguments that I'm not right.
Personally, I think A J Bell's analyst, Russ Mould knows more about Big Mike and his reasons for buying Boohoo shares.
AJ Bell analyst Russ Mould commented:
"Frasers loves a bargain and clearly sees an opportunity to have influence over boohoo's strategy, possibly as another avenue to sell its range of athleisure brands.
But equally, Frasers might be viewing this simply as a way to make a quick buck – a chance to buy shares on the cheap and then flip them should Frasers see the online retailer be successful in its turnaround efforts."
Frasers make their money on athleisure and upmarket flannels and not on missguided nor I Saw It First.
Hence, why they're probably looking to get their athleisure on Boohoo's Debenhams and on ASOS' marketplace at a good price for Frasers i.e. making sure they don't have pay much commission on these sales to Boohoo or ASOS.
Mike Ashley's purchases in Boohoo make a difference for a short while. Novice investors chase in to buy Boohoo shares thinking Mike Ashley is buying, so I'll buy too. Unfortunately they don't do the research needed before buying Boohoo shares.
Mike Ashley bought boohoo shares in July and they've gone down since then. So no doubt they'll go down again from here once the novice investors start to lose their money on their Boohoo shares and sell out.