Member Info for Peoplepower1

17 August 2022

Marshall Wace up 0.01%

Qube up 0.01% which brings them back to their original 0.50%

CapeView up 0.05%

What's 0.01% in Boohoo shares?

About 130,000 shares or have I got that wrong?

DC2007 - That depends. Will Boohoo help REVB to become an online disruptor on beauty?

Or is Boohoo looking to buy REVB out of administration if it goes down with the accounts release report? Does having a near13% stake get them to be the front runners to buy REVB, if REVB go into administration?

I don't know how it works. These are simply my thoughts and I've been known to get things badly wrong.

The worry these days is about stock inventory and too much of it because of the pandemic.

Did REVB buy too much stock because of supply chain problems?

Do REVB need to sell all this stock at a loss?

I may be wrong.

The worry with REVB is that they may have a huge stock inventory and this is what's causing the accounts report to be delayed. Do retail stores get sale or return which would add to a huge stock inventory? REVB are obviously not getting it right when sales are 71% to retail stores and 29% online.

Also, if say, REVB have more than £100m in stock inventory and have to sell this at a loss then gross margins will be hit severely.

The other worry is if REVB survive the accounts report release, then a fund raising will be necessary in the near future.

Maybe take your profits on REVB and run.

Then again, I could be wrong.

For information, 71% of sales came via retail stores, and 29% online, even though REVB was supposed to be an online disruptor in the beauty market.

AO World soared 21% as the online electricals retailer looks ahead to a year of "realignment" following a swing to annual loss. However, the stock is still down 56% overall since 2022 began.

Results for the year to March 31 saw revenue fall 6.3% to GBP1.56 billion from GBP1.66 billion. AO swung to a pretax loss of GBP37.2 million from a GBP20.2 million profit.

Adjusted earnings before interest, tax, depreciation and amortisation of GBP8.5 million was down sharply from GBP64.4 million the year before, which the firm blamed on increased staff costs as well as higher marketing and logistics expenses - however, for the year ahead, it expects a significant improvement in earnings to around GBP20 million to GBP30 million.

AO World expecting a better year ahead for its online business.

Revolution Beauty products are sold on the Boohoo website only under Revolution Skin and I Heart Revolution.

Revolution is sold through Boohoo website only under Revolution Skin and I Heart Revolution.

Something's going on methinks.

I don't think it's simply a strategic partnership.

I think Boohoo are looking to buy Revolution Beauty cheap and will do when the accounts are released on 31 August 2022.

I think Boohoo are setting themselves up for the buyer of Revolution Beauty when the s**t hits the fan on 31 August 2022.

I could be wrong.

So a near 13% stake is about 40m Revolution Beauty shares.

Be kind to yourself and others .... will bring you peace and the rest of us great joy.

The only thing we can be sure of in life is that we will all die at some point.

So until it happens be kind to yourself and to others.

Fans are rushing to lucrative ‘big hit’ events at giant venues like Wembley.

Pipeline from Iberian peninsula to France proposed in effort to wean Europe off Russian gas

And, hopefully, this will start to bring gas prices down.

https://www.investingcube.com/boohoo-share-price-analysis-will-prices-hit-70-shares/

From Paul Scott for the Small Cap Value Report today on Stockopedia:-

My opinion - we’re still in the dark, not knowing the scale of the problems.

Although serious over-stocking was obvious from the accounts as far back as Aug 2021. I did some sums here a year later, on 2 August 2022, concluding -

“REVB looks to be massively over-stocked. Deducing that it might currently have about £100m in inventories at cost, then applying a gross margin og 48% (achieved in H1), I estimate that current inventories would fuel about £192m in revenues (excl.VAT). With full year revenues of c.£220m expected for this new year, that means it could be holding about 319 days worth of sales in its warehouses! Which is crazily high.

This is the main question to ask management - why are they holding such excessive inventories? How much of that is slow-moving? Maybe this is why the audit is delayed, as the auditors have to check inventories for slow-moving lines, and make a provision against anything that can’t be sold above cost.”

Hence I’m ringing an alarm bell here, that I think REVB has problem levels of inventories, maybe it was budgeting/buying for much larger sales? Or maybe some stock has been provided to retailers on a sale or return basis?

It’s not right anyway, so the excessive inventories are a red flag for me. There could be trouble ahead, with another profit warning, I suspect" [SCVR 2 August 2022]

Sorry for quoting my own work, but it saves typing out the same explanation again.

Is it a bargain now it’s halved again, to just 8.6p? Maybe, we don’t know. The market cap is down to only £25m, and I don’t think the business is likely to go bust. But it will certainly need to generate some cash, by clearing excess inventories, and reducing bank debt.

Management obviously have zero credibility now.

Institutions seem to have been dumping this share for any price they can get.

At this stage, I think REVB is just a punt, for gamblers, because we haven’t got enough information to value it accurately.

That said, it’s a decent sized business, and could recover from these issues. So who knows?

I won’t be dabbling myself, I’d still rather wait for the full facts to emerge, then make a rational decision. So at this stage, this one is really just for gamblers/traders.

By Paul Scott for the Small Cap Value Report Thursday 11 August 2022 on Stockopedia

According to Stockopedia's Balance Sheet for Boohoo Group, it states for year ending 28 February 2022, Cash was £101m with Net Debt of £50m

From the Financial Times yesterday -

The average cost of taking the standard 40-foot metal box across the world’s oceans is down by about 45 per cent from its peak in the autumn of last year, according to data from international freight company Freightos.

The number of vessels queueing outside the port of Los Angeles has dropped 75 per cent from the start of the year despite the port recording its busiest June in a century. Delivery times for air cargo, tracked by supply chain portal Flexport, are improving too.

The global supply chain pressure index, set up by the Federal Reserve Bank of New York, is down 57 per cent in July from its peak.

I think T4G has a point with Shorter algos moving the share price down when it suits them. Presumably this is what algos can be used to do. Share price going up, then put in small sells using algos to get the share price down.

Why couldn't this be done by shorters?

Level5 - where do you find information, for example, there is a buy order at 59p waiting to be filled?