Member Info for Peoplepower1

t4g - your idea of Broker consensus was to take all brokers grading into account over the past year. It never occurred to you that Brokers weren't providing updated gradings on Boohoo because their thinking was boohoo was going bust.

You really have no idea how to read into things.

t4g - the only reason Boohoo isn't going bust is because they are doing cost cutting. When are you going to understand how close to bust Boohoo was and could be?

https://shorttracker.co.uk/company/JE00BG6L7297/

t4g - you're the one who poo pooed broker recommendations when they were downgrading Boohoo.

t4g - It's not panic stories, it's fact. DYOR.

t4g - the cost cutting is mentioned first because cost cutting is what's important.

The fact it's going to be a hard slog says Liberum suggests to me it's going to take some years for Boohoo to become profitable. What does it suggest to you?

t4g - do you read them or just pick out what suits you?

I'm totally in cash at the moment because I don't trust the markets as yet.

I may be wrong however you may be wrong.

No it's not out of context. Bof A are only positive on Boohoo because of Boohoo's cost cutting. BofA's upgrade is based on Boohoo's cost cutting. BofA will be watching Boohoo's cost cutting closely. If Boohoo gets their cost cutting wrong then things will change.

The reason the analyst consensus is hold is because they're watching carefully Boohoo's cost cutting. It is Boohoo's cost cutting which will keep it afloat. However if Boohoo get the cost cutting wrong then things could get much worse for Boohoo.

t4g - cashflow is not profit. Of course Boohoo are going to have some cashflow from selling their products. £41m is bugger all cashflow for 6 months.

it's not out of context. BofA have only gone positive on Boohoo because of Boohoo's cost cutting.

Shein’s lowered valuation

Only a year after its $100 billion valuation was reported, Chinese fast-fashion giant Shein intentionally cut its own valuation down to $64 billion, ahead of a $3 billion funding round last week, according to the Financial Times.

The move is reminiscent of one by French luxury brand Lanvin. Ahead of becoming a public company, Lanvin also cut its own valuation, from $1.25 billion to $1 billion in October last year. An inflated valuation isn’t always the best idea, especially in an uncertain economic landscape. Ryan Nelson, co-founder of early-stage venture capital company Jobi, told Glossy that companies want to ensure that their first few quarters on the stock market have strong momentum. A high initial value that falls within the first quarter is worse than a slightly lower valuation that stays consistent, he said.

And Shein, though not yet publicly traded, has plans to eventually go public. When that happens, the company’s success will be dictated, in part, by the economic health of the markets it caters to. With China facing a period of significantly slowed growth and U.S. inflation continuing to hamper local spending, Shein is likely bracing for a more difficult period over the next 12 months.

t4g - Bank of America said that for Boohoo to recover from here, it needs to convince the market it will survive.

What does this mean to you?

t4g - yes the analysts were worried that Boohoo was going to go bust. The only thing that's keeping Boohoo afloat is cost cutting so this cost cutting will be carefully monitored.

scb - if Boohoo's valuation was £100bn instead of Shein, then the Boohoo share price would be nearly a 200 bagger.

It's a shame all you can resort to is past posts because you are unable to present any arguments against mine.

Have you read what Bank of America said about Boohoo recently? Obviously not.

Shein's valuation is a recent valuation.

Bank of America said that for Boohoo to recover from here, it needs to convince the market it will survive.

2022 Chinese fashion giant Shein became the most downloaded app in the US, surpassing, Instagram, Amazon, Twitter and even TikTok.

Fast fashion is an industry built on cheap prices and ever-changing products.

The problem for boohoo is that Shein now beats it on both fronts. Its platform has more choice and the products cost less.

Shein connects Gen-Z customers in the West with its vast network of garment factories in China. It controls the whole supply chain, from design and manufacturing to shipping.

The Chinese fashion juggernaut is now valued at £100bn in private markets. That’s nearly 200 times larger than boohoo’s current market value of about £600m. This shows the level of competition Boohoo is up against.

It now appears that Shein, not Boohoo, is the future of fast fashion.

Last week, an analyst at Liberum downgraded boohoo stock to sell and slapped a 35p price target on the shares. He thinks it’s going to be a “hard slog from here” for boohoo due to cost headwinds and intense competition from Shein, its Chinese rival.