Member Info for Peoplepower1

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.

Off again in fantasy land. Boohoo is loss making, revenue is declining, active customer numbers are declining, debt is rising. Mike Ashley nor no-one else wants to buy Boohoo.

Mike Ashley is probably hoping to make a quick buck if things turn around at Boohoo. However, Boohoo doesn't know if and when things will turn around so Mike Ashley certainly doesn't know if or when things will turn around for Boohoo.

All you have today is more novice investors chasing Boohoo because Mike Ashley has bought. Sadly these novice investors don't do their own homework and research Boohoo for themselves before buying.

WeeWee - instead of your usual "don't have a clue how big Mike operates nor how RCFs work," come back with proper arguments about these on your part. Instead of just generalist opinions which help no-one. Try to formalise some proper arguments on what your reasons are for not agreeing with these statements.

It's laziness to come back with insulting, generalist statements instead of proper debate and arguments.

Sadly, this is your style. So prove yourself right with proper argument and debate.

Mike Ashley won't be buying out Boohoo. He's selling missguided, so why would he want to buy Boohoo. Boohoo is loss making, revenue declining, active customers declining, debt is rising. Plus Frasers is like a copycat of Debenhams so can't see why Mike Ashley would want an online Debenhams. Frasers are making money because of their sports products and upmarket products like Flannels. If Frasers are looking for a better digital strategy, then look at which global online retail company is doing best in this market and follow their strategy or do better than them. Find the best software people/company to do your digital strategy.

Boohoo need to keep the assets they have to use as collateral for long term loans if needed. Boohoo have a £325m revolving credit facility and no-one knows how much they'll need to use of this over the next two to three years. I think this £325m revolving credit facility is only available until 2026 and Boohoo have drawn it down in full and are paying about £10m annually for this to be drawn down in full till 2026.

There are too many headwinds against Boohoo for the likes of Mike Ashley or anyone to want to buy out Boohoo.

Boohoo has loads of online competition now, hence the decline for them. Competition that is cheaper than Boohoo. There are Shein, Temu, Amazon doing clothes now too, as well as the bricks and mortar such as Primark, TK Maxx plus all the bricks and mortar who are now online as well. Boohoo are having to make loads and loads of cost cutting to reduce their prices to compete in such a market.

No-one knows if the US Distribution Centre will be a success for Boohoo because of all the competition in the US.

Times are difficult with the cost of living crisis which has hit Boohoo badly and will continue to do so.

US inflation is going up again. Online retailers are not seen as a good investment for institutional investors and private investors. Mike Ashley may be buying however he bought in July and the Boohoo share price has gone down since then.

Only novice investors are following Mike Ashley because they haven't done enough reading and research about Boohoo. They think Boohoo will rise again one day however always remember share prices can go down as well as up.

Boohoo share price can go down from here too.

Russ Mould, investment director at AJ Bell, noted that Boohoo shares traded at their lowest level last week since 2015.

"Boohoo has been struggling with cost pressures and weak demand, which have squeezed its margins and left the business loss-making," he said.

"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 see the online retailer be successful in its turnaround efforts."

Worth reading in full so your imagination doesn't go overboard.

There are 1.3bn Boohoo shares, so there'll always be a big free float.

I think you need to remember Mike Ashley bought shares in Boohoo in July and they've gone down since his buying in July, so they can go down again from here too.

Keep hoping and fantasising, you'll need it.

We all can learn to be better investors. That's what's it all about. I want to be a better investor. No doubt, others do too. It's about learning every day and never closing our minds to learning from others.

One day maybe you'll all learn from this advice:-

The problem with this chatboard is you all encourage each other to hold your Boohoo shares in the hope they may go back up. However, they may never go back up to where they once were. It may take them 3 years, or even more, to go back up a bit.

You need to get off all these chatboards to make your own decisions on the shares you buy and hold, otherwise, you’re being influenced by others who are in the same position as yourself. It doesn’t help to make good decisions about your shares by being on any chatboards. Chatboards help you to be a bad investor because you are influenced too much by others who are in the same position as yourself.

You need to do your own research, never rely on others and decide for yourself away from all these chatboards and away from all their influence on what shares to buy and hold.

This is the only way to make the best decisions for yourself. This is the only way to be a good investor.

Fortunately I'm not interested in who has been banned or not. Maybe others need to be the same too. Learning to be a better investor is what counts to me. And a reminder to us all:-

The problem with this chatboard is you all encourage each other to hold your Boohoo shares in the hope they may go back up. However, they may never go back up to where they once were. It may take them 3 years, or even more, to go back up a bit.

You need to get off all these chatboards to make your own decisions on the shares you buy and hold, otherwise, you’re being influenced by others who are in the same position as yourself. It doesn’t help to make good decisions about your shares by being on any chatboards. Chatboards help you to be a bad investor because you are influenced too much by others who are in the same position as yourself.

You need to do your own research, never rely on others and decide for yourself away from all these chatboards and away from all their influence on what shares to buy and hold.

This is the only way to make the best decisions for yourself. This is the only way to be a good investor.