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Oversold territory doesn't mean Boohoo is a buy. It means it's oversold and you buy at your peril on oversold.

Guidance and Outlook from the Profit Warning Trading Update of 16 December 2021

The reality is that Boohoo end of year results will be poor, with poor Christmas trading and poor January and February trading. The sales growth will probably be down to 10% if we're lucky. Boohoo got the items wrong that they were selling for Christmas 2021.

Boohoo have f**ked up very badly, that's the reality.

Read the guidance below and try to read between the lines too for worse to come.

For the year ending 28 February 2022, the Group now expects net sales growth to be 12% to 14%, compared to previous guidance of 20% to 25% growth. This reflects our expectation that the factors impacting our performance in the Period persist through the remainder of the financial year, and recent developments surrounding the Omicron variant could pose further demand uncertainty and elevated returns rates particularly in January and February.

Adjusted EBITDA margin for the year is expected to be 6% to 7%, compared to previous guidance of 9% to 9.5%, implying adjusted EBITDA of between £117 million to £139 million. This is due to significantly higher returns rates impacting net sales growth and costs, with continued extended delivery times impacting international demand, consequently driving lower returns on marketing expenditure, and significant ongoing pandemic-related inbound freight cost inflation.

The Group expects to incur cash exceptional items for the year of around £33 million, compared to £22.5 million previously guided, primarily due to warehouse and new brand restructuring.

It doesn't work like that for share prices. More bad news means more share price falls.

https://www.gurufocus.com/news/1629295/is-boohoo-stock-a-deep-value-investment

Valuation taken from this link which was already posted here.

Guidance and Outlook from the Profit Warning Trading Update of 16 December 2021

Boohoo stated their margin is expected to be 6% to 7% so Guru Focus has taken the 6% margin from Boohoo itself.

For the year ending 28 February 2022, the Group now expects net sales growth to be 12% to 14%, compared to previous guidance of 20% to 25% growth. This reflects our expectation that the factors impacting our performance in the Period persist through the remainder of the financial year, and recent developments surrounding the Omicron variant could pose further demand uncertainty and elevated returns rates particularly in January and February.

Adjusted EBITDA margin for the year is expected to be 6% to 7%, compared to previous guidance of 9% to 9.5%, implying adjusted EBITDA of between £117 million to £139 million. This is due to significantly higher returns rates impacting net sales growth and costs, with continued extended delivery times impacting international demand, consequently driving lower returns on marketing expenditure, and significant ongoing pandemic-related inbound freight cost inflation.

The Group expects to incur cash exceptional items for the year of around £33 million, compared to £22.5 million previously guided, primarily due to warehouse and new brand restructuring.

From Boohoo's own profit warning trading update of 16 December 2021:-

Net sales impacted by returns rates that are 12.5 percentage points higher than last year, and 7 percentage points higher than pre-pandemic levels driven by an exceptionally high dress mix

Boohoo got the items they were selling wrong for Christmas 2021 so the end of year results due early March 2022 will be poor for Boohoo for Christmas 2021

https://internetretailing.net/industry/industry/online-sales-grew-in-2021--but-fell-back-in-december-as-shoppers-headed-in-store-for-certainty-24228

https://www.retailgazette.co.uk/blog/2022/01/asos-takes-a-hit-from-omicron-as-supply-chain-costs-soar/

You keep saying this when you know Asos online results for Christmas were poor.

Jupiter had 9.99% of Boohoo shares on 17 January 2022 and sold 5.29% of Boohoo shares on 18 January 2022. This left Jupiter with a holding of 4.7% of Boohoo shares.

The RNS gives the date on which the transaction took place i.e. 18 January 2022.

Click on Boo Live RNS above and then click on, 19 January 2022 - Notification of Major Holdings, then read this RNS from top to bottom. Don't simply skim it because you'll miss important information by skimming it.

If Jupiter had been selling Boohoo shares over the last eighteen months then they would have had to provide RNS' for each sale.

20% growth gives a better picture for the valuation of the company with a mean valuation of 169 p per share and a top end valuation of 245p per share.

Based on this analysis, the stock is deeply undervalued from the mean valuation, trading at a 69% discount. However, expect lots of volatility and a depressed stock price at least for the next one to two years.

From my valuation model, of 10% growth and 6% margin, I get a fair value of 1.09 pounds per share.

The stock is currently trading at around 101 p per share and is thus approximately 7% undervalued.

Now this is quite surprising, and not as much of a discount as many people would expect.

The end of year results are expected to be poor too because online retailers didn't do well over Christmas. Plus, January and February won't be great months for Boohoo.

The end of year results are due early March 2022.

Wise advice is, never to buy shares until a positive trading update emerges.

The reason the Boohoo share price is so low is because of the profit warning trading update from 16 December 2021.

Sorry that should read Non Executive Director

Read the RNS about the Non-Executive Chairman who bought 300000 shares in Boohoo because he already had CFDs in Boohoo.

Jupiter weren't forced to sell. They were over their 10% of money in Boohoo shares for May and June 2020 only, note 2020, nearly two years ago. The Boohoo share price was more than £3 back in May 2020. So when the Boohoo share price fell Jupiter would have easily come into the 10% of money allowed in Boohoo shares in July 2020.

Jupiter sold nearly 5% of their holding in Boohoo shares some eighteen months later i.e. December 2021 and now have less than 5% holding of Boohoo shares.

Guidance and Outlook from the Profit Warning Trading Update of 16 December 2021

For the year ending 28 February 2022, the Group now expects net sales growth to be 12% to 14%, compared to previous guidance of 20% to 25% growth. This reflects our expectation that the factors impacting our performance in the Period persist through the remainder of the financial year, and recent developments surrounding the Omicron variant could pose further demand uncertainty and elevated returns rates particularly in January and February.

Adjusted EBITDA margin for the year is expected to be 6% to 7%, compared to previous guidance of 9% to 9.5%, implying adjusted EBITDA of between £117 million to £139 million. This is due to significantly higher returns rates impacting net sales growth and costs, with continued extended delivery times impacting international demand, consequently driving lower returns on marketing expenditure, and significant ongoing pandemic-related inbound freight cost inflation.

The Group expects to incur cash exceptional items for the year of around £33 million, compared to £22.5 million previously guided, primarily due to warehouse and new brand restructuring.

The reason the Boohoo share price is so low is because of the profit warning trading update from 16 December 2021.

According to Guru Focus with 10% growth the Boohoo share price is worth £1.09 and with 20% growth £1.69.