Member Info for Peoplepower1

https://www.youtube.com/watch?v=l82kIjqBtqw

Just over a minute so worth listening to Warren Buffett and Charlie Munger on EBITDA

EBITDA needs to be simply profit before tax and none of this depreciation, amortisation, etc., where companies can use this EBITDA to hide what's really going on.

So always be wary of EBITDA.

oliverthehardy - Boohoo have already come out with a profit warning trading update on 16 December 2021, so how can your EPS for year ending 28 February 2022 be near enough 10% higher than the EPS for year ending 28 February 2021?

oliverthehardy - Stockopedia's EPS for year ending 28 February 2022 for Boohoo is 5.85

Ooops should be:-

Buy when the 10 day moving average crosses the 40 day moving average and looks like it's continuing to go up.

Sell when the 40 day moving average crosses the 100 day moving average and looks like it's not going to change.

Buy when the 10 day moving average crosses the 100 day moving average and looks like it's continuing to go up.

Good advice maybe on when to buy and sell shares from a stockbroker of 40 years, now recently retired, and very much a proactive momentum investor exclusively focused on small caps both in the UK and in the US.

As he says, if you sell, you can always buy them back (and should - sometimes lower, sometimes higher - it's swings and roundabouts and irrelevant) if and when it turns again.

Loved this post from a Stockbroker of 40 years, now retired,on Stockopedia:-

Well the main objective is to stay IN the aggressive growth situation for as long as possible and not be bucked off by savage short term spikes, so the mechanical sale signal is really basic and really slow, so as to be rarely triggered on a long term upward-trending growth stock - a sort of fail-safe measure of last resort.

It is simply when the 40 day moving average crosses through the 100 day moving average - BUT with the proviso that the signal is NOT acted upon if by then the share price has already started to recover and is standing above the lowest point reached in this current downtrend. The signal is only acted upon in these cases when the share price flops over again and touches a new low.

I would say that the signal is ignored about 70% of the time for that reason and successfully keeps you in the long term upward trending minnow which is hopefully en route to turning into a Microsoft. And it is not triggered by short term downward spikes, no matter how savage. When it does properly trigger I almost never want to follow the signal, because by then I have become so attached to this situation which, by then, has perhaps already given me a 3 to 5-fold gain, and is still a minnow, and I am convinced it is going to go on to be a 10 bagger at least….but I stick to my guns and do it. Again, about 70% of the time it’s proved to be the right thing.

Boohoo, for example, triggered the 40/100 MA on the downside on a number of occasions over the past year, but only gave a confirmed sell signal for me around 7/5/2021 when the 40/100 was breached and the share price was still hitting new 3 month lows. The share price was 310p when I reluctantly sold.

If I remain convinced of the company’s long term merits I will then place it on a ‘watch to rebuy’ list. For that I will use a much faster trigger - normally when the 10 day moving average pushes up above the 40 day. Also, because 10/40 is still a lagging indicator, I will only think of acting on it if the share price is now clearly trending up at the point of the signal, and has not already flopped over - a sort of reversal of the 40/100 sell signal proviso.

Although very tempting at 120p, Boohoo hasn't triggered a repurchase for me yet on this basis, and I have to stick to my self-disciplines! After all, I was equally tempted at 210p!

Needless to say, none of these things are perfect, and one almost never gets out at the top or back in at the bottom. I just keep loping after the share price like a pack of Cape Hunting Dogs!

trading4good - sometimes SOS, Sosander, is seen in a different league, other times it goes down too, unfortunately.

Asos is down nearly 3%.

Click on Share Prices at the side of this page for Share Risers and Share Fallers, if you can't see them and haven't used them before now.

The Hut Group is down nearly 7% and Darktrace is down nearly 5%, both seen as UK growth shares. Growth shares being hit.

Click on Share Risers and Share Fallers at the side of this page. They are a useful indicator of what's going up and what's going down.

trading4good - I've just stated that, in my post below yours.

RichTheNewbie - you're right, sorry my mistake there is a similar research note from Liberum, maybe not as much detail, dated 22 December 2021, less than two weeks ago, as follows:-

Liberum slashes Boohoo price target but reiterates 'buy' rating

Wed, 22nd Dec 2021 11:58
(Sharecast News) - Liberum slashed its price target on fast-fashion retailer Boohoo on Thursday to 200p from 360p but reiterated its 'buy' rating and said it was "keeping faith in the long-term story".
The broker said Boohoo's recent profit warning was not just a result of the global supply chain logjam but also over-optimism baked into the guidance for the second half of 2022.

"We believe the inflated supply chain costs and weakened delivery proposition will persist for the next 12-18 months, and we therefore cut our FY'22- 24E earnings estimates by more than 40%," it said.

"Our view is that there will be an industry-wide permanent rebasing of supply chain costs at a higher level after the pandemic. We also believe boohoo will need to invest behind prices and marketing to recover lost ground in US and Rest of Europe.

"We therefore estimate EBITDA margin remaining below the 10% target until FY'27E. The increased returns rate brings in an added element of concern around product quality, but we continue to believe in Boohoo's long-term potential, and see a path for recovery to the medium-term growth targets as we think the rapid growth of Shein in the US may be in boohoo's favour in the long-run."

Liberum said it was "excited" by the developments at Debenhams, where the opportunity is substantial.

"Trading at only 0.6x FY'23E EV/sales and 7x EV/EBITDA, we think the shares offer good long-term value."

RichTheNewbie - I've not read this research note by Liberum until today.

I get all the research I can get on Boohoo through Research Tree.

trading4good - I'm guessing this is why the Boohoo share price is also going down today, because of this note by Liberum which was released today via Sharecast News at 13.59pm.

trading4good - the above was posted today at 1.59pm and dated Tuesday 4 January 2022.

trading4good - the information on the next trading update is above the Enquiries part, if that helps.

trading4good - from the 16 December 2021 profit warning trading update at the very end is stated as follows:-

Notice of trading update

The Group intends to provide a trading update for the year ending 28 February 2022 in early March 2022.

trading4good - as far as I know, it is not old news. Please click on the Boo Share News above and see it for yourself. That's where I read it today. It was posted today at 1.50pm

trading4good. - Boohoo have already stated on the profit warning trading update of 16 December 2021 that the next trading update will be early March 2022. This is stated at the very end of the 16 December 2021 profit warning trading update.

Reardon95 - Some of the pandemic's bigger beneficiaries struggled today i.e. the start of the year, 2022.

FTSE 100-listed online grocer Ocado fell 4.5%.

Online retailers ASOS and boohoo lost 1.2% and 2.1%, respectively.

The takeaway delivery sector also struggled, with Just Eat Takeaway down 2.4% and Deliveroo falling 1.7%.

Share price falls of 6.7% for HelloFresh and 3.0% for Delivery Hero.