Member Info for Peoplepower1

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?

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.