Member Info for Peoplepower1

Littletrader - this is why Boohoo Group are working so hard to get ESG right by using people like Alison Levitt QC, Sir Brian Leveson QC, bringing in Andrew Reaney from Primark as Director of Responsible Sourcing as well as looking for a Non-Executive Director with ESG credentials.

Boohoo Group know this is the way to get a huge rerating of Boohoo's share price because more and more institutional funds will buy Boohoo shares.

There are not that many Boohoo shares out there for the thousands of institutional funds to buy when they do decide to buy.

littletrader - there are a total of some 3,000 institutional funds in the UK. About 132 of these UK institutional funds have holdings in Boohoo. This leaves a future potential of 2,868 UK institutional fund buyers. That's just for the UK.

So, if and when institutional funds decide to buy Boohoo shares because they're happy with Boohoo's ESG, then there's going to be a huge rerating of Boohoo's share price.

littletrader - those that bailed out still make a difference to the share price, hence where it is now. Also, any other large institutional funds thinking of investing in Boohoo won't until the ESG is sorted or being seen to be nearly sorted.

There aren't many shares around for the large institutional funds to buy when they do decide to buy, that means there will be a huge rerating of the share price when they do buy.

Once the large institutional funds see that Boohoo are earnest about ESG then they will buy back into Boohoo which will mean a huge rerating of the share price.

Zacks have also upgraded Boohoo to Buy.

JPMORGAN RAISES BOOHOO PRICE TARGET TO 480 (460) PENCE - 'OVERWEIGHT'

Overweight is a term used by some institutions and means Buy.

AIM4 - The £850m valuation for Arcadia Group shows what it is capable of achieving with someone like Philip Green at the helm. This valuation has even greater potential with Boohoo Group at the helm.

AIM4 - my understanding is that where there are assets that can be sold off and monies from these assets can be put into the pension fund, then the pension fund isn't eligible for PPF. Hence why the Arcadia Group pension fund will be the top creditor to be paid or certainly closest to the top of those creditors to be paid from the sale of the Arcadia Group brands.

There were no BHS assets that could be sold off for monies to be put into the BHS Pension fund. This is why the BHS Pension Fund was eligible for PPF. Yes, you're right about the insolvency. So sorry, I didn't explain myself very well there.

Boohoo Group's Accounting Periods are, P1 from 1 March to 31 May, P2 from 1 June to 31 August, P3 from 1 September to 31 December and P4 from 1 January to 28 February. They are 3 months for P1 and P2, 4 months for P3 and 2 months for P4.

P4 from 1 January to 28 February includes Valentine's Day, thankfully, because it's probably not the busiest time of the year for any online retail fashion group.

Vaccines are being rolled out at present. We need more and more to be produced so more and more people get vaccinated. It's the production of the vaccines that needs to be ramped up. Then people can get out for the Spring and Summer.

I still think Boohoo Group may get Arcadia Group including TopShop/TopMan because they're setting up a warehouse by end of April 2021 in Wellingborough for six of their nine brands to move out of their Burnley automated warehouse. These are Nasty Gal, MissPap, Karen Millen, Coast, Oasis and Warehouse.

And, Boohoo Group are extending their automated warehouse in Burnley. Arcadia Group have six brands in administration for sale, TopShop/TopMan, Miss Selfridge, Wallis, Burton and Dorothy Perkins.

Maybe Boohoo Group are making room for six more brands to replace the six brands moving out of their Burnley automated warehouse, just a thought.

danl90 - we need to take into account that January and February 2021 is the last period of the accounting year for Boohoo Group. It is period P4 which is a two month period compared to the P3 period which was a 4 month period.

AIM4 - Arcadia Group's Pension Fund is the top creditor or extremely close to being the top creditor. HMRC is not a creditor because the legislation for HMRC to be a creditor in administrations came in after the Arcadia Group went into administration. Arcadia Group Pension Fund is not eligible for PPF.

danl90 - maybe you're right. However, I don't see it that way. The share price is down and will remain down until large institutional funds can see for sure that Boohoo are indeed earnest about getting their ESG right. Once this happens, there will be a huge rerating of the Boohoo share price.

Aim4 - The Arcadia Group Pension black hole of £350m is one of the top creditors, if not the top creditor, to be paid. The Arcadia Group Pension Fund is not eligible for PPF. BHS Pension fund was eligible for PPF because it was sold off for £1 by Philip Green. Hence why Philip Green was made to put in hundreds of millions into the BHS pension fund by a Government Committee and the Pension Regulator. Arcadia Group Pension Fund is not eligible for PPF.

danl90 - if full year guidance was 36 - 38% and Boohoo have now stated 38%. How can that be a negative of 2%?

danl90 - it's not, it was for the next two months which is January and February 2021. Boohoo run from 1 March to 28 February each years. John Lyttle was talking about these two months we're in now. He was talking about the total annual revenue of 38% for the year ending 28 February 2021. Boohoo will overdeliver on this too and it will come in at 42% at least and probably more.

danl90 - Boohoo stated 28 - 32% for the last 4 months trading and came in with 40%. This is what they do. They always underpromise and overdeliver.

danl90 - John Lyttle did clarify this by saying that the first days of January 2021 have already been very good so far for sales.

Please remember Boohoo Group aways underpromise and overdeliver, it's part of who they are.

danl90 - there are still four other brands, Miss Selfridge, Wallis, Burton and Dorothy Perkins. These were all much more upmarket before Philip Green bought them. Miss Selfridge belonged to Selfridges. Wallis was up there with catwalk designs. Both were seen as prestigious design brands before Philip Green.

If Boohoo really want the six brands, I'm sure they'll take into account in their bid the fact that Next with the US Hedge Fund will be keeping some of the stores open. However, we need to remember that Next have their own stores and may not want to keep too many TopShop stores open. Next may simply want to sell TopShop through their own stores.

What better way is there to get the Boohoo share price to £6 as quickly as possible?

Buy Arcadia Group's six brands, TopShop, TopMan, Miss Selfridge, Wallis, Burton, Dorothy Perkins and The Outfit's website which is used to advertise the six brands. Arcadia Group valued recently at £850m.

Arcadia Group's 8 brands included Evans, already sold, and The Outfit which is really an advertising website for all the other brands.

ragtrade, danl90 - it looks to me like the Administrators will be wanting to get the most money from the sale for the Pension black hole now and not later so it may well be Boohoo Group who buy Arcadia Group.

Keepcalmcarryon - Arcadia Group was estimated to be worth £850m recently, so it's a good buy. Boohoo have the cash to buy Arcadia Group which is TopShop, TopMan, Miss Selfridge, Wallis, Burton, Dorothy Perkins as well as plenty of cash left over for marketing on US soil.