Member Info for simon1367

I'm convinced the SP drop was overdone yesterday. I mean a 20% fall on news that USA figures were marginally below expectations is ridiculous. What a fickle market it is, largely down to gloomy forecasts for companies overall. The Uk market compared to others is cheap. RTO's P/E ratio was a bit high but this is now p/e 22, which in my view is worth a punt. I went in at 4.92 but like many should have waited a bit longer. I'm hoping there's some positive comment in the press over the weekend!

Jamess: Interestinging I've been reading about Sosandar (SOS), a much smaller online retailer that is growing revenue year on year, chipping away at the likes of Asos and Boohoo (like so many others). It's worth looking at their financials. Still relatively early days but a growth stock which reached profitability this year. They seem to recognised the value of having a high street presence (having worked with Next and Sainsburys etc) and plan opening in busy areas. Their shares tumbled this week by 25% on this news, but I feel they are actually on the right track having seen the success of people like Next and Sportsdirect. Sosander say: "It will bring increased brand awareness, higher margins, more efficient marketing and overall lower return rates. Over the last two years there has been ample and growing evidence highlighting the financial importance of store locations." Sosandar expects to have opened its first stores by spring 2024 in "affluent towns with thriving high streets", with the investment self-funded from existing cash reserves.

It will also reduce price-led promotions as it moves away from being an online-only retailer. Interesting. Perhaps Asos needs to be more than a one trick online pony.

Boohoo shorts position is dreadful. They are not going away anytime soon. This is because firstly most of the online fashion retailers are having a hard time in an overcrowded market. Boohoo has lost its way and, whilst attractive to predators, is perceived as being vulnerable; the hope I suppose is that the USA distribution centre will increase sales and margins. I have said before that the USA market is difficult to crack long term and it could be a drain on their resources for a long time. They need to get their act together here first before expanding. Secondly, if Asos reports end of year results next week which show other negative aspects which were not contained in their update last month, then both shares will drop further. Boohoos only hope is that a buyer emerges, otherwise it's a long old haul...in my view.

Frasers on a spree here, and at Boohoo. Only difference is, is that all his 15% of Boohoo are physical shares, whereas here, 12% of the 23% holding of Asos is in derivatives.

It looks as though he's selling put options again which generally means he receives an up front premium to possibly do something he may want to do anyway; that is buy the shares if they dip a little bit. It's risky as if the shares drop dramatically, he could be forced to buy the physical shares at a significantly higher price than the market price. To me, his strategy indicates that he doesn't see the price dropping too much from here. But hey, what do I know?!!!

.....just a liitle add-on to my last comment this morning. Whatever MA is up to, don't expect him to do any favours for the small private investor. He's a predator and an opportunist. He is disliked by both the City and his competitors as he doesn't conform to the norm. He is just as likely to sell up on a share in entirety without warning. He's unpredictable. Having said that, he's normally shrewd as can be seen by Frasers and the businesses it encompasses. However he lost out big to Kamani in the Debenhams debacle and still feels aggrieved about it having been sidelined and losing £150m as a result. What we see now is, in my view, not only an opportunity to possibly fit Boohoo into his set up, but also to get one back on Kamani who has let the business drift.

With MA adding to his holding, one would think the SP would react more positively. The reason it hasn't is that Boohoo are presently in a precarious state due to poor leadership and MA is, to an extent, propping up the SP. Nevertheless, he apparently sees good value under 30p. Notwithstanding the overcrowded competition, Frasers sees huge value in the teenage female market that Boohoo targets. It fits in well with their business. It simply needs someone who knows what they're doing, and Frasers more often than not have had the midas touch. Pure online fashion retailers are a one trick pony whereas the likes of Next and Frasers see the value of not having all their eggs in one basket.

The shorts aren't going anywhere soon. They still see money to be made here. And when they do start reducing it will be a very gradual process. Therefore liquidity is not an issue here.

Jamess....and I also see what you are saying in many respects. The way I see it, businesses who operate on the high street as well as online are spreading the risk. Interestingly Next's online sales are significantly higher online: 2022 £3.1 billion with an online profit of £467m. The high street sales were about £1.8billion and a profit of £241m.

Asos online sales for 2022 were about £3.9billion with a loss of £31million.

I know it is wrong to compare like with like, but nevertheless just look at those figures. It's quite depressing as an Asos shareholder.

I have to say that during the pandemic, the pure online retailers had a huge advantage, as that is where most of the money was directed to. High street clothes retailers were shut. I believe companies like Boohoo and Asos completley lost focus because it was all too easy for them, and they thought online was going to be the only way in future, with growth year in year out. As the saying goes....big mistake, huge. Frasers, Next , Primark and others have other ideas and it entails the best of both.

James's....if anything, (and based on the continual apparent demise of the high street) the pure online retailers should be miles ahead in the game. The likes of Next, and Frasers have large bricks and mortar costs to contend with in addition to their large online operations and yet look at their profits. In a nutshell, they've had far better people running things. They have excellent insights and strategies and move quickly when necessary, whereas Asos and Boohoo seem to go from one crisis to the next, with promises of more jam tomorrow, whereupon another excuse arises. Sorry, but you can't be lax in this crowded market. Boohoo and Asos in the right hands will succeed. Presently they are in the wrong hands.

AlexTrader.....the Asos spokesperson's waffle about 'refreshing the leadership' in order to move forward in the right direction, was somewhat disingenuous in it's content. The CEO himself fairly recently moved from the CFO position, and now some of the other promotions are also happening from within. Now, normally I wouldn't mind this if they had done a good job. But it's blindingly obvious that with a 93% drop in the SP, they have done a bloody awful job. The company needs much better top quality management. That means the CEO must go for a start. The company needs a good shake up by someone with a better vision and with a midas touch. Meanwhile check out the SP performances of ABF, Next, and Frasers. Go compare!

BlackfoxTrading....Asos already had their trading update in September, which was fairly detailed and indicated the end year 'results' at the end of Oct/early Nov would be at the bottom end of guidance. At least hopefully all that is already priced into the current SP, unless more undeclared issues are highlighted in the official accounts. Therefore don't expect much of an uplift in Booho shares. Look at the shorts and they're sending you a message. I agree, if Boohoo do survive as an independent, proper recovery will take a couple of years at least.

With Boohoo overtaking Asos as the biggest declared shorted share on the stock exchange, the signs are ominous. I see the shares in both companies continuing to head southwards, with the likes of MA accumulating more on the way. It's painful to watch. And it's equally painful to read some of the ever hopeful rampers here who still see this as a growth stock with a great independent future ahead of it. Well maybe, but this is a very overcrowded market and only the best will survive. Neither Boohoo or Asos presently have the quality at the top. I reckon both their days of independence are numbered.

T4G....BooHoo, with the recent distribution warehouse beginning to operate, has little more than a small 'foothold' in the States. Like other UK company's have found out to their peril in various sectors, the Americans will do their upmost to spoil the party. I predict, fairly confidently, that the USA, in one way or another, will continue to be a drain on the company's resources. Mark my words. Boohoo has to get its house in order closer to home in its core market before venturing out further. I'm surprised the CEO is still there. His days must (or should) be numbered. Come the end of the day, it is the fittest who survive in this crowded market. On balance, I don't see boohoo being a dominant player. Its had its time as an independent.

Unfortunately, with trade unlikely to be improving this year, and what with GS downgrading to 29p, this share is heading in only one direction. One can try and ramp this up as much as one likes but MA is likely to be snapping up more shares at a lower level in the next few weeks. The short position says it all. I agree with a previous comment that the company's expansion plans in the USA and the costs pertaining to that could ultimately be its downfall. So many companies think the USA is the place to be. So many companies have failed as a result. Best to get your home markets sorted out first.

TheCrowman....Big Mike and his team has increased the SP of Frasers by + 163% in 5 years, as opposed to Kamani and his clowns reducing Boohoo SP by - 86% over the same period. He must be doing something right. News reports indicate he is still pursuing the administrators of Debenhams in the courts in the way he was excluded from various affairs despite owning 30%. Boohoo's demographic fits his strategy. He's on a win/win situation with this. He either picks it up for peanuts, with the satisfaction of getting his own back on Kamani, or the company turnarounds and he gains from the SP.

DTN....indeed you are a novice lol. How naive. Everyone in the city knows who controls things. The guy who owns over 75% of the Fraser Group!!!

T4G....Regarding the SP Frasers bought at, I was answering a previous comment speculating about why they had bought an additional 3% and I said 'opportunism', which it was. And I also said it was at circa 28p which is about right as he would have had ample opportunity on that day, the 3rd October, to buy at that level.

Regarding your question re when Kumani last bought shares, I imagine it was towards the beginning of Covid when he could see a killing to be made with online sales. He was right in that respect, and could have sold a bit later on at vast profit, and to his credit I don't think he did, although he probably regrets it! If he has confidence now, he and his executive should be buying now, although it might be too late in the day, and could now be seen as a desperate attempt to prop up the shares.

When did he last sell......not sure, but in reality he has never had to. As I said, he made his vast fortune long long ago and, at a guess, has no need to raise funds.....so far. Any sale now would of course send a terrible message; he has little choice but to hold on.

The company, (along with Asos where I am indeed a suffering SH), needs a good shake up and the Kamanis, in my opinion, are not the ones to do it. I mean, the half year results were terrible. However, I'm sure Frasers sees value here if managed properly. They would love to control this brand and rub Kumani's face in it at the same time.

And no, I'm not a Boohoo shareholder. I didn't realise it was a prerequisite to be one in order to make a comment here!

RoyGa....He bought at the lowest price this year c£0.28....pure opportunism. He knows they are in trouble losing money and volume but that, with the right management, can be turned around. Kamani and his lot are not the right management. They have let shareholders down badly.........capitalisation July 2021 £3.54 billion......October 2023 £384 million. The way things are going, Kumani may need to sell one of his Rolls-Royces or Lamborghinis. But actually, hey, probably not. Whilst shareholders have seen their investment dwindle, the Kumanis, while still holding a significant minority stake, made most of their money from the flotation of the company and ongoing sales of their shares.

When was the last time they showed confidence in their own company by buying some? I rest my case.

There is no love lost between Mike Ashley and Kumani. Kumani will feel uncomfortable with this recent development. After all, they have history and I'm certain that, no matter what his ultimate intentions are, MA will want Kumani to sweat for a while. This all goes back to the Debenhams debacle when MA was basically kept out of trying to rescue, or buy the business. Kumani picked up the Debenham brand name and online business from the Administrators, and MA was left with £150m of worthless shares when it went bust. This is now retribution. MA would find it not only exhilarating, but hilarious to now pick up Boohoo for peanuts.

Rab...Metro, as we know, are in a precarious state and will eventually need a rescue package, whatever form that takes. As you rightly say, the Shorts probably got wind of this from within. The shorts have made a killing on them. Why am I mentioning Metro again on here? Because they are the third highest shorted share. Therein lies the problem.....look who the two companies who are shorted even more!

Share price up a bit on the news that Frasers has upped it stake again in Boohoo from 10% to 13%. More opportunistic buying by Mr Ashley.