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Half way through 2020 and 5 add ons since (2 for me in Isa and SIPP and 3 for the kids when it had a significant drop back and I moved them to a stocks and shares isa). Average just under a quid I believe. Never sold.
Still enjoy the board regularly, appreciate the genuine folk posting thoughts and info. You know who you are!
Good luck to all, especially our long term holders.
All going well, great times ahead for JOG and the many loyal shareholders. I have not sold any shares and as it stands already my top performer, I enjoy checking in on the board although I don’t post much. The kids isa holding of JOG is looking great also, could cover some future uni fees :)
Good luck to all, Hold tight for the ride with FO news hopefully on the horizon.
All the best to Dick also, great contributor!
Bit of a pullback no real surprise, pleasant to see it going right direction overall. Exciting times at last we hope, update on the horizon you would think. Hopefully the big one but if not a hint of a shortlist selection process (pure guessing from me, they won’t give any names away obviously!)
SP may be a little volatile in weeks ahead with the subscription offer to be taken up by tomorrow (confirmed by 14th I believe), Hard to know what allocation will be fulfilled if it’s as popular as the recent fundraiser purchase that was leaked out. Outside of the dilution, you wouldn’t think it would take too much news to get the SP moving north again, would not be surprised if some timely updates arrive soon enough (not farm out as such but something to wet the appetite hopefully).
Really like this company and although the Bio-Medical division is going tremendously well the sweet spot will surely be the Networking and Cyber Division in years to come, diverse but extremely capable business model to date. Quiet a unique AIM growth company to be invested in IMO. Delighted to be invested for a longer term hold now following my a shorter spell as a shareholder last year while I got to know the company a bit more. Only sold at the time as id set a short term investment target in a company that was new to me which was duly achieved in good time during some volatile markets and have been waiting for a great opportunity to get back in following the excellent results last month, I think this is it and see this going very well in the years ahead. Good luck all.
Not posted for a while but enjoy the comments from all (well nearly all, we have the odd knucklehead from time to time!) I retain my position to hold long term on JOG but like others I'm disappointed with recent handling of funding but hopeful for some consolidation now before further sentiment or news on farm out gets this moving again. I still believe fundamentals will make this highly attractive and with some healthy competition has great prospects for SH return, even at this level with some recent dilution (I still think think this a fantastic entry price imo) . Completely understand the frustration of those that have held for many many years, I hope you are duly rewarded.
Below is a link to an article on requirements for greener credentials for North Sea OIl & Gas, heard about this before but an update form Energy Voice. Ties in with the JOG production philosophy.
https://www.energyvoice.com/oilandgas/north-sea/309427/transition-deal-boost-uk-oil-industry-tougher-scrutiny-explorers/
Final Paragraph - Paul Scott
In the table above, the numbers that really surprised me are PLT, which seems to be smashing it, at 12.9m followers, and NastyGal doing surprisingly well - which could be behind the very strong growth in American revenues. If BOO brands continue growing strongly in America, then a listing in New York would make a lot of sense & could trigger a serious re-rating - look at FarFetch for example.
Boo Review form Paul Scott this morning.
Boohoo (LON:BOO)
(I hold)
New auditor appointed
As expected, it looks a mid-tier firm, PKF Littlejohn. Its website says PKF is the 7th ranked auditor of listed companies in the UK, and has more than 21,000 partners and staff globally (of which 2,030 in the UK). So it's not a mickey mouse outfit. I don't really care who audits the accounts, as long as it's a reasonable-sized firm with a good reputation (which this is), and not some local backstreet outfit.
Audit work always used to be the entree, with little profit, to get a foot in the door for more lucrative tax & deal advisory fees.
KPMG is helping Sir Brian Leveson, in cleaning up & follow-up reporting on the extensive supply chain measures that have been taken. Once everything is sorted out there, maybe KPMG could become the auditors in future? Does it really matter? The auditing sector seem to be frequently engulfed in their own scandals & failures, so I find it a bit rich that they're reported as being sniffy about not wanting to audit BooHoo!
It will be interesting to see what happens to the Arcadia brands. Newspapers are reporting that BOO is seen as the front-runner to acquire the jewel in the crown, TopShop. That would certainly be an exciting move, but Mike Ashley is also sniffing around apparently. With 9 existing brands, BOO has plenty to be getting on with.
Over the weekend, I thought it would be interesting to compare the number of Instagram followers that BOO's brands have, and this was the result;
PrettyLittleThing 12.9m
BooHoo 7.0m
NastyGal 4.9m
MissPap 2.5m
BooHooMan 1.4m
I didn't look at the smaller, more recently acquired brands, as they're probably not significant at this stage (e.g. Oasis was only 355k).
By way of comparison, Manchester fast fashion competitor MissGuided has the same number of Instagram followers as BooHoo, at 7.0m. Press reports say it is having a big resurgence, with sales up 45% (same as BOO group) this year, to c.£300m annualised, according to recent press reports, and is considering a stock market flotation.
Did you see the TV mini-series about MissGuided? It almost went bust in 2018, but has since managed to recover, but is still loss-making, in both 2019 & 2020. How do they manage to lose money in a booming sector? The TV series suggests they're not very good at managing stock intake & ended up with a lot of terminal stock (buying the wrong things basically). The whole point of test & repeat is that that shouldn't be able to happen. The foul-mouthed narrator/creative woman at Missguided was really rubbing me up the wrong way by episode 3. How is it empowering for women to shout & swear all the time? Maybe I'm just getting old, but I prefer it when all people act with a bit of decorum in the workplace.
Boo team have answered extremely constructively, great work from Reaney particularly! Its a great platform for Boo to reiterate the transparency and improvements moving forward within the business, and a little nod to acknowledge past errors of a fast growing business is no harm at all in my opinion.
Keywords:
Agenda for change!
Code of conduct!
Collaboration!
New Factory!
Shareholder value and profit (oh, hang on I added that one!!)
Any tabloid can spin this anyway they like so lets see if the usual culprits act accordingly or perhaps progress the narrative at last.
El, Skin in the game helps sir!
Only time will tell of course, I for one am delighted to be invested with a long term perspective on the upside potential for shareholder value. Early next year looks an exciting time for the next phase forward and the board have a timeline to progress, yes it’s challenging times within the industry but I feel this will continue to improve with sentiment and a global recovery. Seems undervalued in current times, steady rise and positive news of late is nice to see!
Just to remind some investors on how Boo share value can be assessed,, below is an extract from Buffetslovechild who did some sound number crunching not too long ago. .. a reminder of what great value Boo offers at the current share price.
Estimate of the Intrinsic value price of a Boohoo Share.
1) 5 year EPS growth rate estimate from yahoo finance (analysis page) is 29.9% per year. From the balance sheet we can see that equity has grown from 85.5million in 2015 to 569 million in 2020. That is 46% per year compounded growth.
2) The 5yr historic PE from MSN Money price ratios is High of 70.86 and low of 37.69 is 52.7 average.
3) Current EPS (TTM) is 5.3p x growth rate 1.3 x 10yrs = 69. Therefore the estimated EPS is 69p in 10yrs.
4) The earnings per share of 0.69 x the future PE of 52.7 gives a share value in 10yrs of £35.88.
5) If you take 15% profits year on year from this sum you achieve a current fair price of £7.71
6) discount this by 50% for a margin of safety purchase price of £3.85.
Basically you can buy this all the way up to £3.85 and still get a fantastic bargain.
DYOR... and make some fair assessments of information provided by others, that the benefit of this board!
Forget the bitter souls de-ramping!
I wonder what the next few weeks have in store?
Great trading through Black Friday noted, potential for Boo RNS trading update which may hint just how well online retail sector has faired lately inc the recent lockdown which hindered the high street... Arcadia debacle throwing up some industry interest in brands.
Should be interesting!!!
Quiet on here isn’t it...I’d be happy for a steady rise into the New Year trading statement.
Thanks for the insight Dick, appreciate you adding your extensive background knowledge and for previous posts form you also. Good to have such content/opinions available. Keep well Sir.
Personally I have topped up this week (showed up as a sell on LSE which I appreciate happens as they are not always accurate!) but I remain hopeful of the processes to emerge in Q1 next year and beyond! I have no issues with a long term hold with JOG. For many to invest it will need the catalyst of positive events next year off course and I see little to push it up-between now an then (potential asset news/update). The board have set some guidance on the time frame to come so patience is indeed required and I believe/hope many of the sellers have now cleared. Lets see......
Even my kids are now small JOG holders though their junior ISA! Lets hope AB and the board look after them long term : )
Moose, that's what i did when Boo had results drop, I like this sector currently so took some profits and waited a few weeks then entered with ASOS, however I see both as good positions to hold with current covid society restrictions and online shopping boom. Boo more volatile as we have seen but admittedly as a long term hold I see more growth upside on the SP in Boo (just my opinion). ASOS more of a safe spot and board seem to get on with it without fuss so not a bad place to be! All the best whatever way you go.
Fantastic update, recent sell off purely down to twitchy investors in a quiet spell... this should move back up nicely now. Still long term for me so very satisfied with progress. Well done to all those who held on once again. Watch out for some analyst/investor updates in coming week (Ireland and Steve Thompson at IC perhaps).