Member Info for Pmoran1969

You are absolutely correct Reppyr Max_2 could be right. Booohoo could also announce on 39th September that sales were 30% below forecast, that they are ceasing sales operations in the USA and they are selling the pretty little things brand to ASOS for £1. It could happen but you know it won’t just like you know max_2 won’t be right!

Nice bit of research there Mickymix. People power I could put up with your daily posts if that was the kind of research you were sharing with us!!!

Micky even allowing for more people browsing to check the brand out without buying and perhaps taking into account people who looked up boohoo because they were in the press or new shareholders checking the products out (I know I did) that’s a very hefty increase and I think you are absolutely right, a chunk of that web traffic has undoubtedly resulted in sales and we could well be in for a shock as to how many. Personally I am already fully loaded with boohoo but if I wasn’t and was debating should I add or not you might just have persuaded me that I should. Either way in the absence of an update from the board that some people have been disappointed about this should offer some comfort.

Thanks for sharing.

Wyndrum I wish people power was better at research! Every day like clockwork we get the boohoo is a great growth stock and if you own a share you should research research research it every day. Yet today at 1544 he/she posts

I haven't seen another Guardian article.

Well people power that was over an hour after Steveknowsnothing posted a link to the article on here.

Perhaps you could give us a bit of a clue as to what it is exactly that your daily research consists of for you to have missed both the article and the link on here referring to it?

Arudge it’s a good job it was Morecombe bay If they had been in S****thorpe you might have been banned from lse not just censored!! Lol

Totally agree. I’m in William hill and also some good old fashioned boring steady eddies like Unilever, Diageo and AstraZeneca in my portfolio and the boards can be relatively quiet or frequented by grownups when busy. I’m also in boohoo since they practically halved in price in July and the normals can often be outnumbered by the nutters trolls and general not rights at times over there! I’m sure we will get to that stage here at some point but hopefully it will be because the share is motoring and that will compensate in some way.

I invest in hsbc, bae, imperial brands, William hill and others as well as boohoo. Is it ethical for me to invest in a company that make products that kill people (both bae and imperial brands)? Or in a company whose business model is essentially based on taking your money off you (William hill or hsbc take your pick)? I rely on auditors to ensure the annual report and accounting practices are valid and legal, on various legislation and the law to ensure that the company is operating correctly and if and when a company I invest in is found categorically to have done something wrong it will cost me because either they get fined or lose sales er people sell their shares and the value of my holding goes down. But if I’ll be honest, when I look for a comoany to buy into I look at the likelihood of the share price going up and not much else. I don’t think I’m alone in that.

Mywife, you asked the question why based in the premise that at 400+ it was way overpriced and after the bad press there was a massive correction. Whereas others will view the 400+ figure as correctly priced based on current sales revenue and future expected Growth and the drop after the bad press as oversold. For those people who believe 400+ is a fair price and the current price is subdued because of the bad press a good set of results and little impact from the Levitt inquiry would suggest getting quickly back to pre bad press prices would be feasible. So I guess I would ask you why do you think boohoo before the bad press was so overpriced??

There are bound to be some people who want to take profit at a certain point but I don’t predict a mass sell off on the strength of good results. Take those people who only jumped in here when the price dropped in July (I am one) it’s possible some of them might sell half their holding in the 450-500 ra ge and they’ve doubled their money and let the other half ride. It’s equally possible that they view 600 as an achievable near term target and hold waiting for that. And of course there’s bound to be at least one or two who will decide to stick it in an isa for 20 years n the believed that as long as they read about boo every day during that time it will make them rich;). The thing is that because people have different investment strategies and different target prices as individuals take profit others will be jumping in or topping up at those prices so it has minimal effect on the share price.

It’s a Wednesday!

Maxage, I know who it is......................... it’s Chris england!

I personally doubt we will see a dividend from boohoo in the foreseeable future. The board clearly have big plans be that growth through acquisition, building a factory in Leicester or growing the existing brands worldwide. While the company is in growth mode any surplus’s cash will be put to use doing just that and while the share price continues to grow as it has done historically investors will be happy enough to hold without a dividend being paid. It might be a few years yet before the bod consider dividends.

I think you are right that the results are expected to be rather good and that was priced in to a degree but at the 400+ price the share was at pre Sunday times story. It may be that the results are even better than was ‘priced in’ at those levels. However the share price took a severe hit courtesy of the Sunday times story and sla getting rid of a bunch of shares and there is still some nervousness around what, if anything, the Levitt inquiry will unearth. If the inquiry doesn’t drop any bombshells and the results are as expected or better the expectation is that at the very least the share price will get back to where it was at over 400. If however the inquiry does highlight something that the company need to address it may suppress the share price from rising as high ,or certainly as high as quickly as we might expect. As has been pointed out on here before other companies have had their issues with supply chain and poor working conditions and it hasn’t affected them in the long run and as has also been pointed out many analysts, stock watchers and investors don’t think the inquiry will throw up much to worry about so the general consensus from the glass half full crowd is results will be good, inquiry won’t be bad and share price will quickly surpass 400 and that will be the new normal pending boohoo Conquering America or taking over Dubai or becoming the amazon of fashion the world over or whatever you believe the long term future may hold.

Dubs, I made a few bets with my investments this year because I saw certain companies as being available on the cheap. Centrica, marks and Spencer’s and Barclays were all invested in expecting share prices to recover over time. I’ve been a long time holder of William hill and when the shares were on their backside I took the opportunity to add to my holding, not just to bring my average cost per share down but because I genuinely believe wmh are on the cusp of having a fantastic 3-5 years of growth. I would not be surprised to see the U.K./European and USA businesses split into two companies and whilst I expect Europe/U.K. to hold their own as a profitable business I fully expect the USA to take off. It won’t be without regulatory pressure on both sides of the Atlantic and it won’t be without a degree of volatility but wmh is firmly in my buy and hold for ever pot and I don’t see it moving anytime soon, it’s historically been a decent dividend payer and I expect to see that trend continue from next year so for me there’s nothing not to like about wmh, at least not now the share price is in a more realistic place again. If pushed I’d be more inclined to offload my Unilever stock than my William hill at the moment.

I imagine Chris is too busy on his dealing account to be reading posts on here this morning. I hope he didn’t sleep in today! I hope he’s decided to stay and will give us an update later.

Me too. Friday at 1600 onwards that is!!!!

Paul85uk, good info there re Twitter comments. Boohoo revenue was about 1/3 of uk Revenue in last annual report. The USA population is about 5 times that of the uk so there’s still plenty of scope for growth in the USA market (and no reason why boohoo shouldn’t achieve tit). As to whether it’s priced in the company does have a rather high P/E ratio which suggests the market is expecting some pretty significant growth figures and whilst the uk market might not have reached saturation point yet Europe, USA and rest of world is most likely where we would expect to see that growth come from so in a sense I would argue it is already priced in to a degree

Ocean, how about employing a bunch of undocumented workers who do not have right to work in the uk and paying them less than minimum wage? Maybe operating a factory that to all intents and purposes appears to be doing the right thing whilst having several dozen hidden employees working from the kitchens and front rooms of several residential properties in Leicester? I’m not saying the inquiry will unearth issues that previous audits haven’t but whilst the scope of the inquiry is relatively narrow and focused the questionnaire the Levitt inquiry is using to obtain information invites hearsay and additional information and should an accusation be made and followed up on as a result of the inquiry or should the recommendations suggest there are accusations that couldn’t be confirmed and therefore a more broad ranging inquiry be commissioned this could have a negative impact on the share price. Personally I think the board wouldn’t have jumped straight in to commissioning the independent inquiry if they thought there were serious issues that would come back on them, I also think the Leicester garment manufacturers are a savvy bunch and if they were operating outside of the law or guidelines they have thus far duped the authorities and their customers so will also dupe Levitt et al. I also think that the inquiry will likely find some minor issues and make some recommendations that will give the boohoo board the chance to say we will fix it and give the institutional investors chance to say hey we will give them the chance to fix it. I think certain elements of the press will jump on anything negative however slight and spin it against nasty boohoo because that suits their particular narrative. I don’t think the customers will be affected one way or another and if the share price is put under slight pressure that’s all it will be, slight. I think the results will be good and that will overshadow any negatives from the inquiry or related press output and the share price will surpass its previous highs by the end of the year or sooner. Because that’s what it think I’m holding my shares until something happens that tells me I should do otherwise but I recognise that I could well be wrong and it might just cost me. My point is we cannot blindly sit here today and say nothing will be uncovered by the inquiry anymore than we can sit here today and say the latest press coverage is the thin end of the wedge or a smoking gun. All we can do is make a decision based on what we think.

I think the point here is that audits are not difficult to pass. If you are operating properly you will have the right paperwork and procedures in place and might get some minor non compliance issues picked up by an auditor. If you are deliberately operating outside certain rules or laws it can be fiddled easy enough. The problems only arise if there’s an immigration raid, someone sends in an undercover journo, there’s a fire or major works accident resulting in an investigation or there’s a whistleblower. Oh yeah and if there’s an independent qc led inquiry. Said inquiry might uncover issues hitherto undiscovered via standard audits. Nothing changes as far as boo is concerned, there’s risk that the inquiry might uncover stuff and there’s risk that the stuff they uncover might affect either boohoo major shareholders or boohoo customers behaviours. So given that we simply don’t know we have to make a decision on what we think we know. Some of us will make money, some of us won’t. All we can do in the meantime is fill out the betting slip and get the bet on, use the cash out facility or let the bet carry until the race is finished!

Bertrumrum, the labour Leicester mayor wanted to have a summit of leading clothing companies and get them to commit to only use suppliers that have a trade union operating. I don’t want to see slave wages paid to uk employees and I have no problem with an organisation and it’s workforce having trade unions in place but I certainly don’t want to see a situation where companies are forced only to deal with suppliers who have a trade union. As is always the case with these types of situation everyone seems to have a vested interest but the mayor of Leicester and the local mp’s have known that problems exist within the garment industry in Leicester and have had ample opportunity its to do something constructive about it before now.

Vorag, wyndrum makes a valid point in his post below concerning what if the story gathers momentum. I am holding at an average of circa 240 so fridays drop has only cost me paper profit. I am happy to hold and am of the opinion that a) the guardian piece is just a different take on the times story with little new information b) the institutional investors that didn’t bail following the times story will hold out for the outcome of the inquiry and assess their position then c) the customers of boohoo didn’t stop buying after the times article so won’t do so now. That said holding boohoo at the moment is a risk and whilst I still think that risk is mitigated somewhat by the share price I do have concerns. The board get sight of the inquiry outcome mid September and whilst officially investors won’t get to know the content until it’s presented alongside the trading update on 30th September the big boys will undoubtedly get a whiff before we do and if it’s not great it could lead to a drop in sp before the results are announced. If institutional investors do drop some boohoo shares The sp,might not bounce back as quickly as the post times story drop regardless of the results. Whatever the outcome of the Levitt inquiry there will be some issues highlighted even if they are things that boohoo are already working to fix and if the press decide to focus only on the negative aspects could this lead to boohoo customers moving away from the brand? If it does that affects the growth prospects of the company and that calls into question it’s relatively high valuation. It all comes down to personal point of view and attitude to risk. I am not one to jump in and out of a share and have committed to holding and waiting to see What happens hoping that my view that the board wouldn’t have gone down the independent inquiry route if they weren’t convinced that there isn’t much of a case to answer.