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I believe Boo are getting all their priorities in line and appear to be advancing all objectives promised that has encouraged me as an investor. Factory update, release of UK supplier list this month, new markets being established, new brands on board (some interesting but I think smart as it has opened a new demographic of customer base), addressing ESG failings, increasing turnover, online strategy, marketing ect. I bought more today - maybe jumped too quick but still see a profit coming in a month or so. Awaiting more media spin and ready to take advantage but will not be spooked by stories that have little credibility. I agree with Kitty and I have benefitted greatly from the last two cycles and see BOO in a much better position now than any time since my first investment,
It is the right message on the SP - the investors all want £6 - he will need to follow ESG policies to do it as that is what the major institutions want. Despite mentioning Aberdeen pulling part of their investment out they should have reminded the panel that 2 large US institutions have joined.
Exactly - what an embarrassing performance. You can easily tell the difference between the professionalism of the participants. AS an MP should she not be demanding that the relevant Government agencies should be doing there job helping fix the issues in Leicester factories. The worrying thing is - who voted for her!
Andrew Reaney
Responsible Sourcing and Product Operations Director at boohoo group
He is clearly far more credible and knowledgeable than the panel asking the questions. Some of the questions from the panel are rather embarrassing. Boohoo team handling this well so far.
I believe Morgan Stanley have provided a level of stability to the share. They seem to buy on days where the SP could slide significantly and have perhaps prevented the big falls like we have had in the past. I think there is a bigger game plan at play and the US/global market is part of it. Boo seem to be getting their acct together and addressing the reputational issues that has damaged the SP. The BOD has been pro-active to secure the support of at least two large institutions recently and I think Morgan Stanley seem to be buying and selling in an agreed range. I do not think they would be on board this soon after the commissioned report and auditors scare without absolute assurances that ESG and governance issues are being addressed. KPMG involvement will provide comfort as MS and KPMG work together on many projects. From the outside it looks very much like a plan is coming together. Boohoo are ambitious and have a good business model and are now building a structure around them for sustained stability. Many will be hoping for a car crash Kumani committee meeting to buy in again at a low SP but I do not think that is going to happen this time. Perhaps a drop but nothing like what we have experienced before and it will only go up again after anyway. I will stay and add and only get concerned if I see someone like Morgan Stanley pull significant shares out - they will know any information well ahead of most on this board and feel comfortable that their is a bigger agenda for Boo.
Absolutely delighted - not over yet but what are the thoughts for results day. Big thanks to chrisengland (not sure if he is still on the board) but gave me a lot of confidence and advice through the scary moments early on. First share and this has turned out great. Would be good to hear from Chris as where he thinks this could go now.
Persimon Homes was another company impacted by bad press and poor workmanship who commissioned their own independent report. https://www.persimmonhomes.com/corporate/media/397416/findings-of-the-independent-review.pdf They gained considerable success after admitting failings and agreeing to implement many recommendations from the report. The share price reflected positively. Boohoo BOD will have an opportunity to turn negative reports into a positive with the correct approach. They will know the importance of ESG to the institutions and will be clearly aware that there ambitions and growth will be determined by how they re-act to the restructuring of the supply chain issues. I hope they do not get it wrong but believe they have an ideal opportunity to come through this in a far better situation. Time will tell, but I do think that there is no smoke without fire and some of the media maybe not understanding how difficult it would be for a company to monitor 1000+ suppliers ESG policies. I have not traded shares long but have been in business and trying to monitor supply chain companies at that scale would be impossible. Boohoo has maybe grown too fast and has maybe dropped the ball by trying to supply the demand without proper checks. This experience will hopefully be the learning curve they need to take the business on to a higher level.
This is a very nervous share and I experienced the fall before when I bought at 3.08 on the very first increase after the fall only to see it go back to 2.10. However I bought again on the way back up and will still hold onto the shares until after the results. Next week will be a nervous time but I am repeating to myself why I bought into the share in the first place. I read a post I put on a few days ago and still believe this is the case. If the newspaper slant was 'Boohoo investigators being stalled in attempts to improve Leicester sweatshops' then the reaction would have been totally different. Its all in the messaging and I am sure BOD will make significant improvements to protect the company and ambitions.
22nd Aug
Some fund managers have to be careful about their own reputation and have to justify to their investors that their money is in safer ethical investments. Its all about the importance of ESG to their portfolio. I think some institutions have been taking the opportunity to cash in recently rather than take the risk of waiting until the report. They will also want the SP to be as low as possible after the report to buy back in. I believe the BOD and Boohoo as a company will come out as winners no matter how damaging the report. I believe this because of the following -
1. Fundamentals of the business is strong - increasing sales and market share
2. Boohoo operating in the right growth area - online
3. Great Marketing and growing list of celebrity influence backing the brand
4. Opportunity to turn any negative reports into a positive by re-acting to the advice and recommendations of the report and therefore providing confidence to investment institutions. I think the BOD with good strategy and marketing can turn the whole episode into a positive movement for the industry and create a transparent model that will provide employment in the UK. Important politically! This would provide the confidence to the institutions. The SP fall is due to reputational damage and this can be overcome with good planning/strategy/marketing and transparency going forward.
5. Cost of production may go up and that is a fear but they will either outsource overseas or accept a lesser profit margin on certain items - I think they will do both as UK manufacturing jobs will be an important consideration.
6. I cant see the report damaging any of the BOD even if they knew anything - middle management will take the bullet if any wrongdoing is found on Boohoo's behalf or someone on the BOD will agree to step down.
7. The BOD will do everything possible to secure the support of the institutions - they are ambitious and have a good business model that if worst came to worst someone would want to buy the company as the business fundamentals are strong.
8. The BOD have the opportunity to learn from this episode and luckily are in a strong financial situation to ride the storm. I cannot see them missing the opportunity to set things right going for
That is spot on. Some fund managers have to be careful about their own reputation and have to justify to their investors that their money is in safer ethical investments. Its all about the importance of ESG to their portfolio. I think some institutions have been taking the opportunity to cash in recently rather than take the risk of waiting until the report. They will also want the SP to be as low as possible after the report to buy back in. I believe the BOD and Boohoo as a company will come out as winners no matter how damaging the report. I believe this because of the following -
1. Fundamentals of the business is strong - increasing sales and market share
2. Boohoo operating in the right growth area - online
3. Great Marketing and growing list of celebrity influence backing the brand
4. Opportunity to turn any negative reports into a positive by re-acting to the advice and recommendations of the report and therefore providing confidence to investment institutions. I think the BOD with good strategy and marketing can turn the whole episode into a positive movement for the industry and create a transparent model that will provide employment in the UK. Important politically! This would provide the confidence to the institutions. The SP fall is due to reputational damage and this can be overcome with good planning/strategy/marketing and transparency going forward.
5. Cost of production may go up and that is a fear but they will either outsource overseas or accept a lesser profit margin on certain items - I think they will do both as UK manufacturing jobs will be an important consideration.
6. I cant see the report damaging any of the BOD even if they knew anything - middle management will take the bullet if any wrongdoing is found on Boohoo's behalf or someone on the BOD will agree to step down.
7. The BOD will do everything possible to secure the support of the institutions - they are ambitious and have a good business model that if worst came to worst someone would want to buy the company as the business fundamentals are strong.
8. The BOD have the opportunity to learn from this episode and luckily are in a strong financial situation to ride the storm. I cannot see them missing the opportunity to set things right going forward.
I do now believe we will still be in for some nervous days ahead. After feeling pretty comfortable watching things go upwards towards the results I was surprised at last weeks fall. This is my first share and it has been a good learning curve but hopefully things will settle again as it is testing the nerves. I am sticking with it until the results as I believe the underlying assets of the business is strong and everything else can be remedied with good crisis management. The task is simple - install a credible ESG policy and win back institutional support. The extra costs involved will not significantly impact the potential going forward and I believe will provide huge benefits long t