Member Info for Peoplepower1

t4g - I bought and held Boohoo shares when they had no debt, increasing net profit and good gross margins. This has changed irrevocably for me.

Boohoo is no longer a buy and hold share for me hence why I'm trading Boohoo shares.

It looks like gross margins for end of year accounts will be 50, net loss will be minus £36.5m and net debt will be £73m.

Looking forward, the net debt will be £300m if Boohoo need to use up all of the rcf and make no profit or an extremely small profit.

Personally I think gross margins won't get back to something like 55 for some years to come.

This doesn't bode well for me hence why I'm steering clear of buying and holding Boohoo shares at present.

If you wish to play games, then how come you won't say how many tens of thousands of Boohoo shares do you hold?

Warren Buffett is credited with having said, “Does management think the tooth fairy pays for capital expenditures?”

This sums it all up for me.

t4g - now you know my reasons for not buying and holding Boohoo shares again, until Boohoo produce a decent net profit, increasing gross margins and reduced net debt.

Hence why I trade Boohoo shares at present.

https://corporatefinanceinstitute.com/resources/valuation/warren-buffett-ebitda/

Warren Buffett doesn't trust EBITDA and his reasons for this.

t4g - what you do is up to you. What I do is up to me and not you.

EBITDA is not for me. I'm only interested in net profit, net debt and increasing gross margins.

So you're saying Boohoo will be in debt to the tune of £300m over the next two years. £300m is what I call debt if it has all been spent. Up to now this £300m hasn't all been spent. The estimate by Stockopedia is £73m net debt.

Boohoo have a building they bought in London for £96m. I don't take that into consideration because they may not get £96m for it if they had to sell it.

By the way Wareen Buffett never trusts EBITDA figures. Maybe you need to try the same.

Next is not Boohoo. Next have bricks and mortar stores which make a huge difference to Boohoo. Comparison to Next is meaningless.

t4g - estimate for Boohoo's gross margin is 50 for the end of year 2023 compared to 52.5 for the end of year 2022.

A loss of minus £36.5m to date, debt of £73m to date and gross margin of 50 for end of year 2023.

t4g - Stockopedia estimate Boohoo's debt to date to be £73m so let's see if this matches what's in Boohoo annual accounts for end of year 2023, if it has increased, decreased or what?

t4g - Boohoo drew down all the £100m rcf in the annual accounts for end of year 2022. The rcf was increased to £300m in 2023 including the already drawn down £100m.

t4g - will Boohoo need to live off the £300m revolving credit facility (rcf) over the next two years. How much will Boohoo draw down from this rcf over the next two years? How much have Boohoo paid back to the rcf?

Debt is debt whether it's a fixed rcf or not, it's still debt that has to be paid back.

t4g - it's nothing to do with how the revolver is fixed. It's to do with reducing the debt.

Stockopedia estimate Boohoo's loss to date to be minus £36.5m.

I'll be checking Boohoo's annual accounts when they come out to see how good Stockopedia are with their estimates.

For me, I wouldn't buy and hold Boohoo shares again until I can see a decent net profit, increasing gross margins and reduced debt.

spk999 - so you didn't get it posted before me because you didn't check it. I did. You didn't. So don't moan when I do.

It's also about debt for me. So I'm looking for Boohoo to make a profit, for their gross margins to increase and for their debt to reduce before I would consider buying and holding Boohoo shares again.

For now, I'll stick with trading Boohoo shares.

spk999 - if you're so good at posting positive news you could have got in before me. Why didn't you?

The Boohoo share price goes up and down all the time, so it may be worth your while learning how to trade them.

oceanpassage - too old to learn.

t4g - how many tens of thousands of Boohoo shares do you have?

t4g - that was 28 March 2023. You didn't post the recent increases for 3 and 5 April. I did.

For me, it's best to be trading Boohoo shares now.

Boohoo shares are no longer a buy and hold for me.

That may change if their gross margins increase and they finally make a profit. It's not about revenue. It's about profit and gross margins.

I would suggest trying to trade Boohoo shares at present using small amounts to build up your knowledge, skills and experience. Some you'll win. Some you'll lose.

For me, the share market is about learning everyday. That's why I love it.

It's fun learning new things every day.

spk999 - you didn't post about the recent increases in Boohoo shorts. I did.