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For the most part, stocks trade on investor sentiment. A great example in the news recently is boohoo. The share price trades around 220p, almost half from what it was only a couple of weeks ago. Investors were quick to sell the stock on news about poor working conditions and illegally low pay for workers. So what would George Soros potentially do? Well he suggests that money is to be made by betting (I prefer to say investing) on the unexpected. So right now, buying the stock on the thinking that this situation will blow over and business will be ok in the long run would be doing the unexpected. This could reap rich rewards should the share price return back to levels seen in early July.

For many, Warren Buffett is better known in investing circles than George Soros. But on this investing tip, Buffett backs up what Soros said. He’s quoted as saying to “be fearful when others are greedy, and greedy when others are fearful”. This is the same principle that Soros was making. Some investors are clearly fearful at the moment, which is why we’ve seen a stock market crash. Instead of selling or sitting on your hands with your money, now is the time to be greedy and buy.

Garydav2 - This is Money is owned by Daily Mail, says it all.

https://otp.tools.investis.com/clients/uk/boohoo/rns1/regulatory-story.aspx?cid=798&newsid=1401177

Read in full and learn what Boohoo are going to do to fix their supply chain. Boohoo are the only UK company to do this. No other UK company have ever done an independent review of their supply chain.

downbutnotout - with £350m net cash and 9 brands it will never do a Ted Baker. Read everything in full and learn about Boohoo.

Looks to me like the share price is about to turn. Down 13p on Monday. Down 7p today. So downs are petering out and ups are about to start.

Dealing with consumer fallout

The mere fact that Boohoo has 5 million – mainly 16 to 30 year-old – customers in the UK should put to rest the notion that younger generations are heavily into brands that are sustainable. Perhaps not everyone is aware that working conditions are generally sacrificed to create a £5 dress, but it is fairly clear that the disposable fashion ethos is anything but sustainable.

Sales growth at Boohoo might take a small hit in the short term, but the experience of other fashion brands that were previously caught up in ethical trading scandals including Primark, H&M and C&A shows that consumers are easy to forget and forgive. Tellingly, a #boycottboohoo campaign has failed to gain traction on social media.

It is also worth noting that Boohoo already generates nearly half of its sales in overseas markets – with the US and Europe key. News surrounding the working conditions in the Leicester factories has been fairly sparse outside the UK, and hence overseas sales growth should remain firm going forward.

So sorry Bankfool - it's not on RNS - the link is here.

https://otp.tools.investis.com/clients/uk/boohoo/rns1/regulatory-story.aspx?cid=798&newsid=1401177

Bankfool - Boohoo have already cut ties with the suppliers concerned. They are also having an independent review of their supply chain headed by Alison Levitt QC. Primark never did this. Check out on the RNS above for details of what Boohoo did and are doing. Boohoo came out with all this over a week ago.

Only one is now the highest "red critical" level, a Vietnam operation, which faces bribery allegations and which Asos plans to stop using.

Two UK factories are deemed as high risk, both of which are expected to receive a follow-up audit in August, and both of which have had visits or calls in the last week to work through unresolved issues. The remaining are either largely compliant or will soon be compliant with the retailers’ standards.

_Mr_Big - Bernstein are brokers who analyse shares like Jefferies, Peel Hunt, Numis, Liberum, and many, many more.

Bernstein have come out with a broker note on Boohoo today. They have an outperform rating and a price of £3.50. Outperform means buy.

The accelerated shift to ecommerce continued in June 2020 as total non-store like-for-like sales rocketed by +102.6% from a base of +16.5% in June 2019, marking the third consecutive month where total non-store like-for-like sales recorded an increase above +100%.

In June, UK retail sales increased 10.9% on a like-for-like basis from June 2019, although there was significant distortion. Like-for-like was measured excluding temporary closures, but including online sales. So, the like-for-like figure was driven primarily by online sales.

Leicester’s deputy city mayor, Councillor Adam Clarke, said:

“Factories were visited by the HSE and the police. Verbal advice was given, but no notices were served and none of the factories were required to close.

“Leicester has around 1,500 textile factories and 10,00 textile workers, the second highest concentration in the UK behind Manchester. Many of these businesses are run perfectly ethically and make a huge contribution to our city economy. We are determined to do all we can to ensure that every factory in Leicester complies with the law and treats its workers with respect.”

GLAA head of enforcement Ian Waterfield said:

"No enforcement had been used during visits and officers had not identified any offences under the Modern Slavery Act 2015."

All companies use supply chains who use subcontractors. There will always be those trying to get away with things they shouldn't. The white race is guilty of doing this too. This isn't confined to Leicester. This is UK wide. This is worldwide. How do you think the likes of Trump made his billions?

Their defence plan will be to get the sales figures up and up. That'll show them boohoo will never be beaten.

Papers, media love to build things up and then to knock them down. I wonder how many working for Sunday Times, Daily Mail, Sun, Sky News, Guardian, Mirror, etc., have made money shorting boohoo.

boohoo remains a fast-growing business with revenues as of February 2020 were up 44% from the prior year while the company continues to expand internationally with international sales up 51%. The truth is boohoo is an extremely fast-growing business and is very profitable. Gross profit was also up 42% in the most recent year. boohoo is a great growth share.

Looking at the company's valuation following the most recent pullback, based on last year's EPS of 5.48p, the company, currently, has a historic P/E of 40. While this may still seem pricey, considering the huge growth rate in boohoo's business, I believe they can fulfill and exceed this valuation in the coming years if growth can be sustained. I liked boohoo at £4 a share and now I love it at £2.20.

Where are young people going to buy their clothes? Primark who haven't the up to date fashion that Boohoo has for the young. Asos and Next where they're going to have to pay more. The High St. shops who also don't have the most up to date fashion like Boohoo has.

Boohoo are well ahead of anyone. They use the test and repeat business model. Nobody in the UK uses this business model. The test and repeat model is getting items made quickly, put them on the website, if they sell, order more. Boohoo are brilliant at this and no-one in the UK can touch boohoo for it.

Boohoo has caught the fast fashion wave and I don't see that changing over this. I expect the stock price to fully recover in the next few months. Buy to ride that wave.