Member Info for Peoplepower1

For me, the Boohoo share price won't drop on results. It'll keep moving up and down a little bit, then holding and consolidating.

I've been invested in Boohoo since 2015. This was the pattern before the supply chain issues and it looks to me this is the pattern again.

Boohoo is undervalued. It's a future £4bn revenue business which is nearly 3 times the revenue from year ending 29 February 2020 of £1.3bn.

Boohoo have wanted to be the next Zalando and they'll get there with Debenhams.

Debenhams is just starting. Watch it grow and grow with an excellent executive Boohoo management team.

Hence, why so many on here trying to get the Boohoo share price down to buy in.

Hydr31 - exactly.

The Boohoo Group Executive Management Team know what they're doing better than any of us on here will ever do.

I think it'll take a bit of time to get past the 360p, hold it and consolidate.

As I've already said, it may go up and back down to 350s, even maybe 340s, before it gets past the 360p, holds it and consolidates.

I believe the same will happen for 370p, it will go back to 360s and maybe even 350s before it gets past the 370p, holds it and consolidates. This will be the pattern for 380p too, going back to 370s and even 360s before getting past the 380p, holds it and consolidates. And so on for 390p, 400p, etc.

This is what happened before the supply chain issues. It looks to me this is what's happening again.

As an investor in Boohoo from 2015, I prefer this type of scenario because it holds and consolidates the Boohoo share price as it moves up.

Boohoo used to be an upstart in the fast-fashion market, but that’s no longer the case.

Its market capitalisation of £4.5bn makes it one of the largest listed retail businesses in the UK. This suggests to me the company has reached a level of maturity, which requires a different approach.

It needs to move away from the startup mentality, and that’s just what the business has been doing.

Management has cut ties with dubious suppliers, is investing in warehousing and office space, and the firm is planning to open its own factory in Leicester.

I think all of these initiatives will help reinforce the company’s position in the market and prepare it for the next growth stage.

With its new warehouse space, Boohoo will have the potential to service up to £4bn in sales every year.

I think this capacity will help the organisation capitalise not only on demand for its existing products but also on the brands acquired over the past 12-24 months.

As such, I’m incredibly optimistic about the long-term outlook for the Boohoo share price.

That’s why I’d buy the stock for my portfolio today.

By Rupert Hargreaves.

Rupert Hargreaves is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham.

He is the editor of Hidden Value Stocks, covers value investing for Gurufocus and hedge funds for ValueWalk.com.

Rupert Hargreaves began his career as a proprietary currency trader and still trades on a daily basis.

Rupert Hargreaves holds professional level qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK.

Boohoo Group's results for year ending 28 February 2021 are scheduled to be released on Wednesday 5 May 2021.

Boohoo's future forecast P/E is 33 which would be Boohoo's lowest P/E from 2015.

Highest P/E ratio for Boohoo was 121.68 on 12 June 2017.

Lowest P/E ratio for Boohoo was 38.42 on 1 April 2020.

I think it'll take a bit of time to get past the 360p, hold it and consolidate.

For me, it may go up and back down to 350s, even maybe 340s, before it gets past the 360p, holds it and consolidates.

I believe the same will happen for 370p, 380p and so on.

This is what happened before the supply chain issues. It looks to me this is what's happening now.

As an investor in Boohoo from 2015, I prefer this type of scenario because it holds and consolidates the Boohoo share price as it moves up.

Hydr31 - excellent points, that Boohoo wouldn't be ploughing their cash into property if they were going to need the cash and it's a good sign for the results.

Paul Summers recommends boohoo Group as a top growth stock for April 2021

boohoo (LSE:BOO) has been in the headlines for all the wrong reasons recently.

Nevertheless, I’m confident the steps taken to rectify issues with suppliers will see the fast-fashion growth stock emerge as a bigger and better company in time.

Shares remain below the highs hit in mid-2020.

With people looking for new clothes to wear out to fully ‘unlocked’ bars, however, this gap will likely close before long.

Factor in a raft of recent acquisitions (e.g. Debenhams) and a bulletproof balance sheet, and a normally-frothy forecast P/E of 33 actually looks great value for the growth on offer.

Paul Summers owns shares in boohoo Group.

Paul Summers teaches psychology and also holds the CFA Society's Investment Management Certificate (IMC).

It won't come as a surprise to learn that he's particularly interested in how behaviour and cognitive errors impact on financial decision-making.

Harshil Patel recommends boohoo group as a top growth stock for April 2021

Boohoo group (LSE:BOO) is determined to expand its business over the coming years with its powerful online-only platform in the fast-fashion sector.

Over several years, it has consistently produced double-digit earnings growth. Both organically and through acquisitions. Recently, the group acquired several brands including Warehouse, Debenhams, and Dorothy Perkins.

There are further signs of expansion from recent purchases of a new large warehouse in Daventry and a new freehold office building in Soho for its London-based brands.

Overall, it offers a return on capital of 27% and net cash on its balance sheet. All at an undemanding price-to-earnings ratio of 33.

Harshil Patel owns shares in boohoo group.

Harshil Patel is an experienced private investor, stock picker and freelance investment writer.

With an economics background and a career in equities from London-based investment banks, he has built over 17 years of investment experience.

Harshil is always on the lookout for good quality, growing companies, with share prices on the move.

He has a medium to long term time frame, and loves finding small companies that have an ability to turn into giants.

http://aboutorganiccotton.org/

Wingnutter - thankfully Boohoo are using organic cotton and not cotton produced by the Uyghurs in China.

In December 2016 Boohoo bought two thirds of PrettyLittleThing for £3.3m.

In February 2017 Boohoo bought US Nasty Gal for US$20m and turned it into revenue of £100m within two years.

In March 2019 Boohoo bought MissPap for an undisclosed sum.

In August 2019 Boohoo bought Karen Millen and Coast for £18m.

In May 2020 Boohoo bought the remaining one third of PrettyLittleThing. Under the terms of this deal, Boohoo paid £269.8m initially with a further £54m contingent on Boohoo’s share price averaging 491p over any six-month period between the completion date and March 2024.

£161.9m of the initial payment for PrettyLittleThing was paid in cash and £107.9m in Boohoo shares. The cash element was funded from existing Boohoo cash resources — the group had £241m of net cash as of end-February 2020 — and not from the £197m raised in the Boohoo share issue in May 2020.

PrettyLittleThing generated net sales of £516m in the year to 29 February 2020 and made a post-tax profit that year of £45.2m — more than it its entire accumulated earnings since it started in 2012.

Although the deal involved two members of the founding family, Mahmud Kamani Founder Chairman of Boohoo and Umar Kamani CEO of PrettyLittleThing, it was not subject to shareholder approval. Boohoo had established an independent board committee and engaged KPMG as advisers to safeguard external shareholders’ interests.

In June 2020 Boohoo bought Oasis and Warehouse for £5.25m.

In January 2021 Boohoo bought Debenhams including Maine New England and Mantaray for £55m.

In February 2021 Boohoo bought Arcadia Brands, Burton, Dorothy Perkins and Wallis for £25.2m

https://www.debenhams.com/

Keep it simple - I like it

It looks to me like Boohoo share price is back to the same trading ranges it had before the supply chain issues.

For example, it took a bit of time to get past the 350p share price, going back to the 340s a number of times and even into the 330s before getting past the 350p.

I think the same will happen before it gets past the 360p, going back into the 350s and maybe even the 340s before it consolidates and holds the 360p

I prefer this scenario because it means it holds the share price and keeps going up from 360p, then to 370p and so on.

law007lu - that's a great explanation and thank you so much. I was trying to keep mine simple and so didn't mention the auction bit. You did it brilliantly.

Amazon has combined a linear and platform approach in its B2C e-commerce business. Its marketplace consists of both products owned by Amazon (linear), and products sold by third-party sellers who list items Amazon (platform, connecting third-party sellers to customers directly).

The marketplace has been one of the fastest growing areas of Amazon’s e-commerce business, as well as one of the most profitable. In 2018, Amazon said that more than half of units sold on its marketplace were sold by third-party sellers. By developing a strong relationship with sellers, Amazon is also in a position to offer additional services to sellers such as, and most notably, Fulfillment By Amazon.

Fulfillment by Amazon is yet another (and linear) source of revenue for Amazon that also improves the platform experience overall by ensuring that customers quickly receive items ordered on Amazon’s marketplace, no matter who sold the item. The Fulfillment By Amazon service allows sellers to store their inventory in Amazon warehouses and let Amazon handle shipping when a customer places an order, for a fee.

Amazon also offers advertisers ad space on its marketplace. In 2018, Amazon was projected to make $4.61 billion in advertising revenue. Amazon’s revenue share from ads is growing on the back of its marketplace’s success. The marketplace commands the attention of over 300 million active users, making it attractive to potential advertisers.

On the B2C side, over 100 million users subscribe to Amazon Prime and thereby access an entertainment streaming library (with both licensed and original content), free 2-day shipping on products bought on the marketplace, and other perks.

By combining its platform and linear approach, Amazon captures the best of both worlds. It gets the quality and price control of a linear business along with the wide selection and profit margins of a marketplace. And it’s uniquely poised to offer B2B and B2C services to sellers and buyers who transact on the marketplace, thereby multiplying revenue streams.

Additionally, more than 80% of all items listed on Amazon are from third-party sellers, meaning the marketplace is a significant factor in enabling the company to capture long-tail sales. Amazon also can use data on third-party sales to help it identify where to invest in its linear e-commerce business.

https://innovator.news/the-platform-economy-3c09439b56

Brainwashed, tortured and forced to work in state-run factories.

This is the reality for hundreds of thousands of Uyghurs in China -- and fashion brands like Zara are buying up the cotton they produce.

H&M has been brave enough to say “no more” to the Chinese government, but Zara just keeps going along with it. And its millions of customers have no idea.

Zara execs are terrified its customers will find out their favourite clothing store is taking advantage of the brutal repression of Uyghurs to spin a little extra profit.

Last month, when the government of China slammed H&M for refusing to buy cotton from the Xinjiang region, Zara’s execs bowed to pressure and deleted a statement opposing Uyghur forced labor from its website.