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CAP-XX payout from winning the Maxwell/Tesla court case will be substantial.

Wednesday 24 June 2020

Citigroup raises Boohoo to buy.

Bernstein raises Boohoo price target to 480p from 415p and rates it as outperform. Outperform means buy.

Bonkers67 - Wirecard's previous CEO has been arrested because £1.9bn has gone missing from the Company. Boohoo is nothing like Wirecard. Mahmud Kamani is a billionaire and holds more than 120m Boohoo shares. The Kamanis are decent people and would never do anything like the Wirecard fraud. More importantly, they are billionaires and don't need to do anything like a Wirecard fraud.

It's so important Bonkers67 to research, research, research before buying or selling shares. Then you won't make mistakes.

While shares in online retail businesses have rallied from their lows, Richard Watts argued the scale of this structural shift in retail behaviour was still underappreciated by investors.

‘If you look at market forecasts, they just look too low in the context of recent trading,’ he said.

‘You’re seeing this everywhere. Online businesses, online retail has accelerated in the pandemic.'

Watts was quick to pounce on the falling share price of Boohoo in March 2020. Boohoo is reaping the benefit of a huge shift in customer behaviour brought about by the coronavirus pandemic that Watts believes will have a permanent impact.

‘In my own view, this will be the largest channel shift to online retail in the history of the internet,’ he said. ‘The longer this backdrop goes on, the more entrenched this shift in consumer behaviour will be.'

Watts argued that consumers’ online shopping, which dramatically increased as the lockdown forced the closure of non-essential physical shops, would remain elevated even as the high street reopened.

‘I realise that some of the lockdown measures are being eased, but in my own mind, people will just be nervous about going to a physical store. The second thing that entrenches that permanent change in consumer behaviour is, what is going to happen to our high street?’ he said.

‘Going into the pandemic, about a third of all physical stores in the UK were loss-making. Those stores therefore weren’t particularly viable anyway and just as a consequence of the pandemic and the restrictions I would say that many of those stores will never reopen.’

Richard Watts is a longstanding backer of Boohoo, having invested at the online fashion business’ 2014 flotation and maintained the stock as his top holding for the last three years.

Watts bought more of the shares as they tumbled in March, as the spread of the coronavirus pandemic sent stock markets crashing, and the stock’s recovery since has helped to drive a strong rebound for his fund.

At the fund’s March low, investors had lost 44% since the turn of the year, a heavier fall than the average 36% for funds in the Investment Asociation’s UK All Companies sector. Since then, however, the fund has soared to the top of the sector, surging 72% and limiting its 2020 losses to 11.4%.

Major UK mid-cap investor Richard Watts is being forced to cut his stake in top holding Boohoo (BOO) after his position ballooned over his fund’s limit following the online fashion company’s share price surge.

Watts stake in the company soared to 12.4% of his £2.8bn Merian UK Mid Cap fund at the end of last month, according to Morningstar estimates, after Boohoo’s 146% climb from a March low of 157.5p to 387.1p at the end of May.

That position is well above the 10% limit to fund holdings in individual stocks under rules policed by City regulator the Financial Conduct Authority. When funds commit ‘passive’ breaches of that limit caused by share price movements, as in Watts’ case, rather than trading activity, they are given a deadline of six months to bring the position back below the limit.

Yes you are wrong Bonkers67. Richard Watts loves Boohoo. The only reason he had to sell Boohoo from the Merian Fund because it can't be more than 10% of the fund. He didn't want to sell them, however, he had to do this.

A reminder to us all that finding growth gems is no mean feat.

For me, the best way to find them is to start by buying the weekend Financial Times every weekend and read it from cover to cover. You'll find something that pricks your interest. Research this thoroughly. If you buy them, then keep researching them by reading everything you can find about them. Reading and understanding global financial markets helps too. This all gives you the confidence to buy and hold shares for the long term, i.e. at least 10 years and preferably longer.

A reminder to us all that finding growth gems is no mean feat.

For me, the best way to find them is to start by buying the weekend Financial Times every weekend and read it from cover to cover. You'll find something that pricks your interest. Research this thoroughly. If you buy them, then keep researching them by reading everything you can find about them. Reading and understanding global financial markets helps too. This all gives you the confidence to buy and hold shares for the long term, i.e. at least 10 years and preferably longer.

The best way to deal with negative and obtuse posters is to filter them. Or, any posters who upset you in any way, filter them too. Life's too good to let them affect you.

Click on the filter above, enter their user name, make sure you get it right and press enter. It's so easy to get rid of them.

CAP-XX's order book is twice the level of last year. This doesn't include the customers for the supercaps previously produced by Murata.

CAP-XX will have over A$7m cash, including the tax rebate of more than A$3m. Therefore, it won't need any more money to get the Murata automated production lines up and running.

CAP-XX has no debt.

CAP-XX has great intellectual property (IP) and the best supercaps hence why many companies selling supercaps have infringed CAP-XX's patents.

CAP-XX has a CEO that understands supercaps and how they work. For me, this is essential for a supercap company.

The change of auditor arose because of BDO ECP restructuring its audit practice whereby audits will be conducted by BDO Audit, rather than BDO ECP.

In effect the same auditors with a different name.

For me, CAP-XX has the potential to be a growth investment. The purchase of the automated production lines from Murata was a great buy at an excellent price. Practically a steal, in my opinion.

The automated production lines come with already made customers. What's not to like about that?

CAP-XX have moved to their new HQ which will house Murata's automated production lines. Brilliant move for overseeing everything.

CAP-XX have the chance to grow more customers for the existing supercapacitors previously made by Murata as well as finding new customers for the prizmacap; also to be produced on Murata's equipment.

CAP-XX have 3 Heads of Sales covering the world i.e. Asia, Europe and America including South America.

Supercapacitors are being more and more widely used and understood. Tesla's new battery technology may well include supercapacitors.

CAP-XX will win the court case against Ioxus and Maxwell/Tesla. Court cases take a long time. I know this from some 15 years experience in court cases.

All profit made can be re-invested back into CAP-XX to grow it even more.

Investors going for growth are searching for companies that will generate above-average revenue and earnings growth. In turn, this will lead to greater capital appreciation and, over a long period of time, an investment that will grow in value substantially.

Remember though, finding those growth gems is no mean feat.

Online shopping is booming.

In the wake of the coronavirus, we’re seeing a real acceleration in the shift towards e-commerce.

Indeed, according to analysts at Bernstein, the growth rate of online fashion looks set to triple this year to account for 23% of European fashion sales. Before the coronavirus pandemic, this level of online sales was not expected until 2024.

“The sudden closure of all apparel retail stores across all major global markets has shaken up the channel mix in an unprecedented way this year,” said Bernstein analyst Aneesha Sherman recently. “Five years worth of growth achieved in about six months,” she added.

This surge in online shopping was reflected in the recent trading update of Boohoo. Boohoo advised last week that it would top market expectations for profits and sales again this year after first-quarter results showed revenue growth of 45%.

Looking ahead, online fashion sales as a percentage of total fashion sales is likely to continue increasing. Bernstein analysts believe that by 2030, online fashion sales could rise to nearly 40% of fashion sales.

This means well-established online retailers such as Boohoo are well-placed for growth.

Growth investing is a strategy primarily focused on capital appreciation. Through share price gains, investors can realise some pretty serious returns if they find the right stocks.

Investors going for growth are searching for companies that generate above-average revenue and earnings growth. In turn, this should lead to greater capital appreciation and, over time, an investment that has grown in value substantially.

In my view, there are plenty of opportunities on offer on the FTSE 100, FTSE 250 and FTSE AIM 100 for UK investors to buy growth stocks. Here’s a selection that I think could be among the best shares to buy now if you’re looking to build wealth over the long term.

FTSE 100 growth stocks

The blue-chip FTSE 100 index contains a handful of companies that I’d classify as growth stocks. For example, take internet supermarket Ocado and online property retailer Rightmove. Both are harnessing technology to their advantage and as a result, could feasibly continue to grow earnings in the future. As always though, I recommend both as long-term plays in order to mitigate the effects of any short-term volatility.

FTSE 250 growth stocks

The FTSE 250 index boasts even more opportunities for growth investors than its large-cap counterpart. Think companies such as HomeServe, Greggs, and Moneysupermarket.com. Each has successfully managed to grow revenues, earnings, and their consumer base over recent years. What’s more, thanks to their profitable business strategies and market dominance, I reckon all three have the capacity to continue growing in the long run.

Small-cap growth stocks

If your goal is to generate the strongest investment returns possible, it’s worth looking outside the FTSE 350. Allocating just a small amount of your portfolio to the best UK small-cap shares could yield some explosive returns further down the line.

To illustrate, if you had invested in a promising growth stock such as Games Workshop at the start of 2017, you’d currently be sitting on a return of approximately 1,027%! Remember though, finding those growth gems is no mean feat.

That said, I recommend taking a look at small-cap stocks like Boohoo and DotDigital Group. These companies have innovative business strategies that could rocket-propel growth in the future.

From The Motley Fool on Tuesday 23 June 2020

Thank you Tony_P and good to know about Mouser adding new Prizmacap stock at end of July 2020 for all 3 designs, having just had only one of them in stock.

Well worth reading Tradingdutchman's links below, even if you don't understand all the technical bits. There's always something new to learn from these links that you will understand. I always read them in full.