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BERENBERG INITIATES BOOHOO WITH 'BUY' - TARGET 460 PENCE

Jrm2311 - many thanks for sharing that. Good to know.

Sampsun50 - you need to know a business through and through to invest in it otherwise you're gambling and not investing. Stop encouraging others to gamble too.

mdunsire - cardfactory were paying out excessive dividends when net profits were going down. They should have been investing the dividends in the business and paying off their debt.

You are assuming that revenue is suddenly going to go up when the shops open. If that was the case, then how come the revenue during lockdown didn't move online for Cardfactory.

People have gone elsewhere for their cards to Moonpig, Funky Pigeon or wherever. What makes you think that they're going to go back to Cardfactory shops when they open?

Ringo007 - no I haven't shorted.

That's simply you trying to get people on here to dismiss what I've said about this share.

I have never shorted any shares and never intend to short any shares. Stop trying to dismiss what I've said.

Instead read everything and know what you have invested in here.

Billybob15 - yes I know that. Leases still have to be paid and if you're not making the revenue then how are you going to pay them.

You don't understand that they have paid excessive dividends when net profits were going down and when they should have been investing the dividend money into the business.

Leases are debt and they have to be paid from somewhere.

Sampsun50 - no I haven't shorted Cardfactory.

For me, this is an extremely high risk share.

People are being encouraged on here to buy it without knowing enough about it.

For me, that lacks morals, ethics and displays greed.

Boohoo’s success partly stems from an effective social and digital strategy: one that goes beyond just product to encompass clever branding, digital and social campaigns.

Indeed Boohoo’s success in these areas only serves to highlight other retailers’ lack of investment.

In Econsultancy’s ‘Ecommerce Trends in 2021’, Parry Malm predicted that the market growth of companies like Boohoo will continue to have a negative impact on mid-market or ‘jack-of-all-trades’ retailers.

“This is already happening – we’ve seen many not-small-but-not-big companies go bust, and department stores are on their last legs,” said Malm. “This trend will undoubtedly continue, if not accelerate.”

I

With the rapid shifts that took place last year, 2021 will be about finding ways to reach wary consumers and filling your marketing toolbox with innovative strategies to stand out.

Ecommerce has surpassed levels not expected until 2025 due to the COVID-19 pandemic, expected to bring in over $843 billion in sales this year.

Hollamantropic - oops, sadly, I didn't check Boohoo Group's market cap and just took it from HereKittyKitty's link for the top 100 fashion retailers.

Comment by Paul Scott from Stockopedia - Small Cap Value Report about a fundraising for Cardfactory. Paul Scott was a Finance Director for a UK Clothing Retailer before leaving to become a personal investor and write for the likes of the Small Cap Value Report at Stockopedia. Here's what Paul Scott has to say:-

"A good example is Card Factory (LON:CARD) - this company was already in a stretched financial state before covid, paying out excessive dividends, and carrying too much bank debt.

Having its stores closed on & off for a year, has done a lot of damage.

As reported here, the company is now limping along from one month to the next, with the bank giving short term extensions to the covenants. In other words, it’s close to potentially going bust, if it's not able to raise more equity.

The company has already told the market that it’s exploring funding options, i.e. almost certainly a placing is probably underway as we speak.

Yet we have no idea how many new shares are likely to be issued, nor the price.

Isn’t it crazy that the shares are still trading then?

It’s a false market, due to the funding uncertainty."

Cardfactory's financial year runs from 1 February to 31 January each year.

Net Profit for Cardfactory is as follows:-

1 February 2014 to 31 December 2015 - £33.2m

1 February 2015 to 31 December 2016 - £66.4m

1 February 2016 to 31 December 2017 - £65.7m

1 February 2017 to 31 December 2018 - £58.3m

1 February 2018 to 31 December 2019 - £52.7m

1 February 2019 to 31 December 2020 - £51.9m

Net profit has been going down each financial year from 1 February 2016 to 31 January 2020 and before Covid-19.

Something to think about.

danl90 - it looks to me like the £6000 restart grant, up to local authorities to decide who will get it or not, also depends on whether you had an online business trading during the lockdown.

So it may well be that Cardfactory aren't entitled to these grants.

Billybob15 - read this link from end to end:-

https://www.lse.co.uk/rns/CARD/half-year-report-w7p9sfxajefejot.html

This is Cardfactory's Half Year Report. Look at the Debt/Liabilities. On top of this Cardfactory have a £200m credit loan.

Cardfactory have had debts/liabilities of £300m from 2018 and still have them. In 2017 debt/liabilities was £135m. Since 2018 debts/liabilities have been £300m. They have to be paid at some point.

If you're going to invest in a business then you need to understand the business through and through otherwise you're gambling and not investing.

danl90 - rishi announced £6,000 restart grants - check it out here - https://www.retailgazette.co.uk/blog/2021/03/budget-rishi-sunak-business-rates-holiday-extended-restart-grants-retailers-retail-chancellor/

Non-essential retailers can access a “new restart grant” of £6000 per premises for when they reopen mid-April. Grants.

There are loads of Mother's Day gifts on the Cardfactory website. Sounds like an advertising ploy to me that you and others saw. Check out the Mother's Day Gifts available on Cardfactory now.

If it's a trading issue as you say, then how come the trading hasn't moved online for Cardfactory.

So where are people buying their cards. It's not from Cardfactory's online business because if it was, then you'd be shouting about it.

Revenue hasn't gone up significantly online and you think suddenly when the shops open that revenue is going to go up significantly because the shops are open.

Online has grown exponentially. Do you think all these people buying their cards online, from Moonpig, Funky Pigeon or wherever, are suddenly going to start going back to Cardfactory shops.

Deferred rents for Cardfactory shops still to be paid. Employees to be paid when shops open. Trading not great online for Cardfactory. Revenue not great after shops open.

For me, Cardfactory needs a lot of work and a lot of money if it is to survive.

For me, Cardfactory is an extremely high risk share.

The reasons you think the answers were easy to give is because you don't know Cardfactory business through and through and you don't think things through too.

danl90 - I took the Boohoo Group Market Cap from HereKittyKitty's link which stated Boohoo as US$2.76bn.

Please check it on the link provided by HereKittyKitty. Here it is again:-

https://fashionunited.com/i/top100/

danl90 - so sorry, brain not working too well on that one.

Sadly, one of my family has been taken to hospital today. Maybe you could try to be a bit more sensitive and caring on here because you've no idea what people are going through in their personal lives.

Boohoo Group market cap is £3.99bn which is about US$5.56bn.

Inditex is about US$100bn so that would make it about 18 times the market cap of Boohoo Group. Think what 18 times would do to the Boohoo Group share price.

Tommygun99 - Life is too precious to let people like that get to you. Filter them like I do.

Your time is too valuable to waste on them so filter anyone who gets to you.

Boohoo Group want to be the next Inditex.

Inditex's market cap is US$100bn.

Boohoo Group's market cap is about US$3b.

Inditex's market cap is more than 33 times Boohoo's market cap. More than 33 times. Think what that would do to Boohoo Group's share price.

Think Big.