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Analysts at Liberum raised their target price on online fashion retailer Boohoo from 430p to 490p on Friday 29 May 2020, arguing that Boohoo's recently announced acquisition of the remaining 34% stake in Prettylittlething that it didn't already hold was a "very shrewd and positive move".

And if someone makes you feel irate with their negative posts then filter them. Life's too good to allow negative posters make you feel irate.

Shares go up and down depending on buys and sells. For me, it will probably stay around 3p until the Murata lines are up and running. There's no point in watching it and hoping it'll go up because it's like watching a kettle boil and hoping it will boil faster. They both take their own time. This share price will take its own time too. Don't expect any more updates from CAP-XX until September 2020 and then you won't be frustrated nor disappointed.

Mahmud Kamani still owns about 13% Of Boohoo and Carol Kane still owns about 2.5%. Umar Kamani has taken over 30 million shares as part of the payment for the remaining 34% of PLT. Mahmud Kamani and Carol Kane were great CEOs. Umar Kamani did a brilliant tjob with Prettylittlething and deserved to keep 34% when PLT was first sold to Boohoo. Yes, Boohoo had the option to buy the whole of PLT for £5 million. For me, that would have been totally unfair to Umar Kamani who had made PLT so successful. For Boohoo to buy 66% of PLT for £3.3 million was a steal. And it was only fair that Umar got £278 million for the remaining 34% of PLT. He deserved it. After all ,John Lyttle Boohoo CEO now is going to get £50 million for getting the share price to something like £4.50. Success needs to be rewarded. Mahmud Kamani and Carol Kane's salaries as CEOs were something like £250,000 a year. Bu**er all for such great talent and skills. For me, the Kamanis are decent people and always have been. Those trying to rubbish them are simply trying to get you to panic and sell your shares so they can buy them cheap and make money out of them and you.

Filter anyone who is trying to get you to panic and sell. They're bad losers.

The Global fashion Industry is worth £2,000 billion. UK is £71 billlion, US is £330 billion, Europe is £350 billion and the rest of the world is £1,200 billion. Plenty to go at for Boohoo.

Boohoo has £350 million net cash to buy more distressed or failing brands to grow its global business. Boohoo has 7 brands already, Boohoo, BoohooMan, Prettylittlething, Nasty Gal, Miss Pap, Karen Millen and Coast.

Boohoo bought Nasty Gal in 2017 for £20 million and by end of 2019 had turned it into £100 million revenue. £100 million revenue in 2 years.

Boohoo stated at the last Annual General Meeting that even they were surprised when a £1,000 Karen Millen coat sold out.

Boohoo are excellent at what they do, they can turn failing or distressed brands into profitable businesses within 2 years.

In 2015 revenue for the Boohoo brand on its own was £100 million, at the last Annual General Meeting it was £600 million. Within less than 5 years Boohoo upped the revenue for the Boohoo brand on its own from £100 million to £600 million. Boohoo are a great global business and will grow exponentially.

To work out the change from the RNS today you need to calculate 11.89% of 1,168,033,762 total shares of Boohoo prior to recent placing which will give you what Merian Global Investors (UK) Ltd previously held.

Then calculate 10.68% of 1,257,899,050 total shares of Boohoo after recent placing which will give you what Merian global Investors (UK) Ltd holds now even though some of these are being used for a CFD.

Then take away the lowest from the highest and you’ll know how many shares Merian Global Investors (UK) Ltd sold on Thursday 29 May 2020. Date on which Threshold was crossed or reached is Thursday 29 May 2020 on the RNS today so this is the date they were sold.

I worked it out to be about 4 million Boohoo shares that were sold which is very little when you hold nearly 135 million shares even though about 2.5 million are being used for a CFD (Contract for Difference). Please check my maths.

CAP-XX will win the Ioxus case because Ioxus aren't defending it. This outcome will be used against Maxwell/Tesla. Tesla have already been incorporated into the Court case against Maxwell. It's just a matter of time as to whether there's a settlement. Maxwell/Tesla have no chance of winning this court case however that doesn't mean they won't try to get away with a good financial settlement for themselves.

Have looked at the RNS again and it looks like Merian had held about 139 million shares and now hold about 135 million shares so they may have sold about 4 million Boohoo shares which is a miniscule sale in comparison to what they hold. Please check my maths.

Merian Global Investors (UK) haven't sold any shares. The percentage of shares they own has gone down because of the recent placing of £200m in shares which has increased the number of Boohoo shares in total which means Merian's percentage of Boohoo has gone down to reflect this. These have to be notified by RNS. There may well be more of these RNS in the coming days.

Looks like they're all coming out of the woodwork today to try to get you to panic and sell your Boohoo shares. Don't let anyone do that to you.

They know Boohoo is an outstanding share and want to get in on the cheap.

Boohoo attacked Shadowfall's argument head-on and bought out the rest of Prettylittlething for £320 million. The certainty this provides and the low valuation is positive.

Shadowfall's research note speculated that the cost of buying out PrettyLittleThing could have been £1 billion,.

The much, much lower price paid is terrific news for Boohoo shareholders. I think it makes sense that the Boohoo market cap has increased by over £400 million .

Conclusions - the short failed within 48 hours.

The weight of the argument wasn't strong, and it has been counter-acted by decisive management action.

Generally, shorting is difficult for companies which are:

profitable
cash-rich (Boohoo has cash, no debt)
not frauds (not frauds in Boohoo)

If a company ticks these boxes, then don't short it.

US lawsuits are two a penny and will get nowhere with Boohoo.

I will be holding my Boohoo shares for 10 years and even more.

Don't let the manipulators and distorters panic you into selling. If they're trying to panic you into selling then you know you've got an outstanding share that they want to buy on the cheap and make money from them and from you.

Boohoo's P/E tells us that market participants believe the company will perform better than its industry peers.

The formula for price to earnings is:

Price to Earnings Ratio (P/E) = Share Price ÷ Earnings per Share (EPS)

P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the ‘E’ in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop quickly.

Boohoo grew EPS by a whopping 49% in the last year. And its annual EPS growth rate over 5 years is 41%. I’d therefore be surprised if its P/E ratio wasn't relatively high.

One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn’t take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.

The key point here is that you need to look at cash and debt to understand the P/E ratio in context. Boohoo have no debt. Since Boohoo holds net cash of UK£350m, and that's after paying for the purchase of the remaining 34% of Prettylittlething, it can spend on even more growth, justifying a higher P/E ratio. The excess cash Boohoo carries is the gravy on top of its fast EPS growth.

The extra options and safety that comes with Boohoo's net cash position means that it deserves a higher P/E than it would if it had a lot of net debt.

Boohoo's strong balance sheet gives the company plenty of resources for extra growth, and it has already proven it can grow. So it is not surprising the market is probably extrapolating recent growth well into the future, reflected in the P/E ratio.

People often underestimate remarkable growth — so investors can make money when fast growth is not fully appreciated.

Looks like AXECAPITAL is trying to manipulate holders into panicking and selling so he can buy your shares on the cheap and make money out of them and you. It's so obvious with one post. Do some proper research about Boohoo, AXECAPITAL.

Boohoo is a great investment, AXECAPITAL knows this hence why he's trying his best to get you to panic and sell so he can buy your Boohoo shares on the cheap and make money out of them and you.

AXECAPITAL - go and read the weekend FT from cover to cover. There are plenty of good share buys out there. Read widely, pick up things and research thoroughly anything that pricks your interest. And when you find them then you keep researching them and hold them for 10 years and even more. This is how to make real money. Jumping in and out of shares will never make you rich.

And if you want to filter AXECAPITAL, you can do this so you don't have to put up with his manipulating posts.

No, they haven't sold. Their percentage of shares has decreased because of the new shares in issue from the nearly £200 recent placing. More shares in issue means the percentage Merian held has gone down. This has to be notified by RNS.

Boohoo's P/E tells us that market participants believe the company will perform better than its industry peers.

The formula for price to earnings is:

Price to Earnings Ratio (P/E) = Share Price ÷ Earnings per Share (EPS)

P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the ‘E’ in the equation will increase faster than it would otherwise. And in that case, the P/E ratio itself will drop quickly.

Boohoo grew EPS by a whopping 49% in the last year. And its annual EPS growth rate over 5 years is 41%. I’d therefore be surprised if its P/E ratio wasn't relatively high.

One drawback of using a P/E ratio is that it considers market capitalization, but not the balance sheet. That means it doesn’t take debt or cash into account. In theory, a company can lower its future P/E ratio by using cash or debt to invest in growth.

The key point here is that you need to look at cash and debt to understand the P/E ratio in context. Boohoo have no debt. Since Boohoo holds net cash of UK£350m, and that's after paying for the purchase of the remaining 34% of Prettylittlething, it can spend on even more growth, justifying a higher P/E ratio. The excess cash Boohoo carries is the gravy on top of its fast EPS growth.

The extra options and safety that comes with Boohoo's net cash position means that it deserves a higher P/E than it would if it had a lot of net debt.

Boohoo's strong balance sheet gives the company plenty of resources for extra growth, and it has already proven it can grow. So it is not surprising the market is probably extrapolating recent growth well into the future, reflected in the P/E ratio.

People often underestimate remarkable growth — so investors can make money when fast growth is not fully appreciated.

https://www.marketbeat.com/market-data/high-pe-stocks/

Zoom's P/E is 2,243.78 yes two thousand two hundred and forty three point seventy eight.

Analysts at Liberum raised their target price on online fashion retailer Boohoo from 430p to 490p on Friday 29 May 2020, arguing that Boohoo's recently announced acquisition of the remaining 34% stake in Prettylittlething that it didn't already hold was a "very shrewd and positive move".

Liberum estimates that the deal values 100% of Prettylittlething at £998-1,225m, suggesting a 12m forward 12-15x enterprise value/earnings before interest, tax, depreciation and amortisation ratio - around half of the respective current multiples for Boohoo.

The analysts highlighted that the group has acquired this stake at a 30% minority discount.

They also noted that Boohoo still retains roughly £350m of net cash to pursue further mergers and acquisitions.

"We forecast £215m of Free Cash Flow (FCF) over the next two years, leading to net cash of £476m by year-end FY22E, excluding further M&A," said Liberum, which added that the Prettylittlething deal drove its earnings per share upgrades of 13-14%.

"This gives significant firepower to continue developing the group's stable of own brands, broadening its customer base and opportunity set across the global fashion market."

Boohoo's 7 brands are Boohoo, BoohooMan, Prettylittlething, Nasty Gal, MissPap, Karen Millen and Coast.

Short selling is when a company or individual borrows shares and sells them to the market. At some point they will have to buy them back. If the share price has gone down, they can buy them back cheaper than they sold them and profit from the difference.

Boohoo will pay about £270m initially, followed by £54m as long as its share price averages 491p over any six-month period between completion and March 2024 for the remaining 34% of Pretty Little Thing.

It’s also worth noting that the accusations themselves by Shadowfall were not as damning as we have seen about other companies from short sellers like Muddy Waters.

There is potential for much more upside in the Boohoo share price.

Unlike many fashion retailers, Boohoo has been doing well during lockdown. When bricks and mortar stores reopen, Boohoo won't take a hit. There'll still be social disatancing for bricks and mortar stores.

The majority of Boohoo customers are young and trendy. So much so they kept buying clothes even during lockdown.

Meanwhile Boohoo's attitude towards investment seems like a sensible plan to me. For a business that buys distressed fashion brands cheaply, we're entering a period of opportunity.

Good market position among younger consumers, a good growth track record with plenty of potential to increase market share. Diverse range of brands providing a range of products and catering to different consumer groups. Good profit margins and potential to scale up the business. Management have personal stakes in the company. Clever marketing strategy making use of social media and celebrities to reach target market. Good growth across international markets including the US.