RE: Newbies17 Aug 2020 14:09
Research is the key to finding and holding excellent growth shares like Boohoo.
To do this, read the weekend Financial Times from cover to cover, if anything interests you then research everything you can before buying them, research everything about them on a daily basis whilst holding them and attend all the AGMs. Only buy the number of shares you can research properly.
Boohoo have 9 brands, Boohoo, BoohooMan, Prettylittlething, Nasty Gal, MissPap, Karen Millen, Coast, Oasis, Warehouse. Boohoo are brilliant at buying brands cheap from administration and making them profitable within 2 years. Boohoo bought US company Nasty Gal for £15m and turned its revenue into £100m within 2 years. Each brand has its own management team.
Boohoo bought Oasis and Warehouse for £5.4m and no doubt each of these will achieve revenue of £100m in less than 2 years. Boohoo's revenue for year ending 29 February 2020 was £1.2bn. Boohoo's revenue in 2015 was £100m with the Boohoo brand on its own, now it's 12 times that in 5 years with 4 brands, Boohoo, BoohooMan, Prettylittlething and Nasty Gal.
Boohoo's revenue £1.2bn commanded a share price of £3. So, for example, a £60 share price would need revenue of about £24bn. Boohoo will do this easily. They are a great company with great management, great potential and a great future. They have 9 brands now, no debt and £350m net cash. They will buy more brands cheap out of administration in the future too. They adapt so easily to whatever's happening.
Boohoo have a great management team who always learn from their mistakes and put things right and better. The founders Mahmud Kamani and Carol Kane have been together for years. Carol Kane is the designer. They sold clothes to the likes of Topshop, Miss Selfridge, River Island, etc. They worked out they could do it for themselves online, hence Boohoo.
Their use of social media is amazing, they are always ahead of the game.
John Lyttle grew revenue for Primark to 7bn in 8 years and that was for bricks and mortar. Mahmud Kamani and Carol Kane brought in John Lyttle as CEO. They are excellent at bringing in the right people to run Boohoo. Their Finance Director Neil Catto has been with them for years and does an excellent job too.
Umar Kamani, son of Mahmud Kamani, has turned prettylittlething into £500m revenue in 5 years. He knows how to use social media, influencers, celebrities, has a MBA and knows his business.
The global Fashion Market is worth £2,000bn, Yes £2,000bn. UK is £71bn, USA is £330bn, Europe is £350bn and rest of world is £1,250 bn. Plenty for Boohoo to disrupt and grab. They are superb at disrupting and grabbing market share.
I have owned Boohoo shares since 2015. I have held them through every up and down, they always come back higher and stronger. I have done both, trading shares and buying and holding great growth shares. For me, buying and holding great growth shares has proved to be much more profitable.