Member Info for simon1367

Bfdinvestor In that case I must have got the wrong end of the stick when listening to the news. I'm no expert on importing/exporting. Clearly the main point is. is that the likes of Shein and Temu are exploiting a loophole and it is harming some enterprises. To that extent I know!

Peoplepower1 Are you taking the mickey? If not, I repeat; do your own research to get the answer.

Bfd investor. Yes I initially thought the same but then I remembered talking to a busy small independent retailer in Whitstable some time back who imported, albeit, small amounts of stock from certain European suppliers several times a month under the customs duty limit. So maybe it does affect the small retailers. The main crux of the matter is of course the overall disadvantage to UK companies trying to survive in a very crowded and competitive market.

BlackFoxTrading. Not yet. But what's that got to do with the ITV news item tonight?

But just for your info purposes. ''Shein moved from its planned NY listing to filing papers for a London IPO in June, to which it secured support from the Labour Party just weeks before the July election'' (yahoo finance/guardian)

Hope that helps.

JeremyP. Blimey, the news item went on for about five minutes. I merely tried to put down here, in a few sentences, the main gist of the story, rather than repeating the entire lot ad verbatim! And the gist was mostly about the way they exploit a loophole in the customs duty system and the advanced technology they have to orders. I was not being critical or supportive, so it's not a question of being balanced about anything.

Peoplepower1 I think it would be better if you did a bit of googling on the subject. Basically however, when he sells put options he is gambling the SP will go or stay above the strike price. At the point of doing the deal he does not physically own any of the shares, but he does own the voting rights (and so also effectively the shareholding interest). One of the reasons he still has the benefit of holding a percentage interest derivatively is because, right up to the expiry date, he is potentially obligated to buy the physical shares (if he loses his bet). I trust that explains the basics.

Peoplepower1 This question is often asked. It's a quirk of the derivative system that a seller of puts 'retains the voting rights' of the derivative deal until expiry. Yes I know, it sounds odd but it is one of the reasons MA likes gambling in this way.

Extended news item on ITV this evening about the huge inroads that Shein and Temu are making in the UK against all the other online and high street retailers. The actual story revolves around their high tech operations in China and their system of mailing goods direct from China , under the low £ limit to avoid customs duty. They are also using AI to immediatley identify trends and to often accept requests like styles, colours and sizes to order, producing them within a few days without the need to hold excessive stocks. The government is said to be looking into the customs loophole , but the problem is , is that to change it might detrimentally affect other UK retailers. Shein and co have a big advantage; it's not a level playing field. I think the likes Of Boohoo and Asos will understandably be worried about this. I can see mergers / consolidation / bankruptcies in this sector over the next couple of years.

Minty87.....You are correct. Peoplepower1 has made the error of interpreting 'puts' as a gamble on the price falling to make a profit. That is not the case when you 'sell puts', in fact it's almost the opposite. Frasers has been selling puts to receive a premium from the buyer of the derivative deal. If the SP falls below the strike price (of I reckon about £3.60/£3.70) he will be obliged to buy the physical shares at that price. If the SP goes above the strike price he is happy and the deal expires. If he loses the bet and the SP stays lower, the physical holding will go up, but I imagine the derivative percentage will go down unless he has done subsequent deals. Ultimately he could also (in theory) contemporaneously , sell shares on the open market to keep below 30% if he had to but he would probably lose money in doing so..

Down nearly 20% in the last month. I notice they have huge positions in Nvidia and Microsoft, a total of 57% of the trusts entire holdings. Thats why it has risen so well in the last year, but this highly risky if tech stocks go out of favour. Nevertheless, those two holdings are premium stocks. One to monitor closely.

Following on from my comments yesterday, I don't normally say 'I told you so' but the article today in the Sunday Telegraph essentially mirrored precisely the problems with Boohoo I highlighted. At the time , I didn't know what had spooked the SP, but clearly it transpires some of the fall was due to the impending article. And of course nothing changes. We still have the top three who, having made their fortune already, still think they deserve a bit more. They may well be disappointed by their reduced valuation of their remaining shares, but hey, I doubt if they are particularly destitute. Bfdinvestor, I will reiterate, the K's are now a liability. The trust has gone, and the workforce are seemingly p**sd off. To suggest K steps up to CEO would be a totally retrograde step. MA must be having a very pleasant weekend chuckling to himself and deciding how he can put further pressure on the company from the sidelines.

Bfdinvestor......with respect, it was very relevant 'waffle'. Boohoo will remain tarnished until the K's are out of the business. I read a very long and detailed investigation regarding their modus operandi a few years back. It didn't make good reading. However by that time they had made their money through making the right decisions re the online fashion market and going public. Following that, In my view, they have not only become complacent, but have tried to squeeze as much remuneration out of the business as they can to support their flashy lifestyles.

And Bfdinvestor, you must of course realise that Boohoo is an AIM listed company where the median salary for CEOs in 2023 was £363,100 ....NOT £2million as you suggest! Bonuses for CEOs made up 33% of total remuneration packages. For goodness sake be careful, you'll be giving the top three execs ideas by mentioning £2m entitlements lol.

Something has spooked the SP. Down over 16% in a week. In 2022 this company was due to becoming worth £2billion. Market capitalization now £366m. I suspect someone's got wind of poor figures in the pipeline. The fact that MA's Frasers holds 25% of the company (all physical shares) makes uncomfortable reading for Kamani. Both Kamani and Ashley are tough operators with i.m.o dubious ways of doing things. The main difference is, is that MA knows how to run a business. The K's and other executives seem to be too busy with their flamboyant lifestyles and their unsatiable desire for bonus packages (reward for failure). Even though they backtracked this year on £1m bonuses for the three main executives (after the shareholder revolt) , Kamani, Kane and Lyttle still have paid themselves salaries of over £500k, £500k and £700k respectively. The previous year, as far as I can remember, they rewarded themselves well over £1m each for failure. This while the company struggles. MA's holding is of course mainly for a strategic partnership, rather like his other interests...Asos, Currys, AO, etc but I think he would love nothing better than to pick up the pieces if ever Boohoo started to fail. MA was previously intent on buying Debs out of administration, but the administrators acted in a way that prevented him. It would be sweet justice if he got his hands on the name. All the while the K's and extended family have influence on this business, I don't believe it is going anywhere and there will be more of the same. It would be great if Frasers just took it over, but it's not normally their style.

Its disappointing to see running arguments of little merit entering this board; more accustomed to the boohoo thread.

The SP continues to bide time in this narrow-like bracket of between 3.40 - 3.80, and so it will probably continue until the next update which, imo will be of crucial importance. So long as there is confirmation of improving profitable cash flows, we will at least see some stability and possibly the start of a re-rating. However, I am very nervous about the update. I suspect, on balance, there will be further issues (challenging summer, increased competition, lower than expected margins, debt levels etc ). Maybe more promises of jam tomorrow. I sense the markets remain to be convinced. Shorts have crept up again slightly; they are still far too high, and for some reason someone has spooked the Boohoo SP today, down nearly 9% in a day. And now the last thing we need is a correction in an overheated USA market. We will simply follow with the inevitable downward pressure on the SP. Meanwhile the likes of Frasers are doing just fine. MA is simply there for strategic reasons, hoping to pick up business through partnerships. Ultimately, I see this share going no-where for quite sometime unless an overseas opportunist enters the fray. More consolidation (and failures) in this sector is inevitable. There's simply too many wanting a piece of the same pie.

Petersen....some very valid points. DGE and ULVR are two of the most solid stocks on the LSE, and indeed have been a couple of my favourites in years gone by. I am not invested at present. Some people have been surprised about how stock markets have fared over some uncertain times and how resilient the ftse has been, possibly riding on the back of the USA. Unfortunately I sense a correction is well overdue in the USA. That probably means it will continue to rise!!! However, be in no doubt, there will be a correction at some point where we will likely see a 10 -20% drop. If that happens in the next year, that is where I see an entry point again for DGE.

Petersen...what you say is largely true. i.m.o DGE is fundamentally one of the best stocks on the LSE but has lost favour due to various factors. Unfortunately, your position about it basically being a good medium/long term hold, whilst having loads of merit, has not been proven over the last five years. Down 25% over 5 years, and down 28% over 3 years. Okay, that doesn't include the divs paid out, but those in no way makes up for the loss incurred. In that respect you would have been better off keeping your money in a savings account!I see turbullent times for the next year or two but if this goes below £20, I'll be tempted by the low entry point.

Disappointed with the 5% drop. The figures whilst unremarkable didn't really deserve that. I thought there was some momentum upwards, but the market is so demanding.

We probably wont get a trading statement until early September. Accounts to the y/e 31st August will be published in around November. However, Fraser's results today hopefully reflect a change in the sentiment towards the sector. Sales were 1% down but results were top of guidance. Frasers SP currently up 9% today. If only Asos was run as efficiently. Let's hope the corner is turned. Shorts heading in the right direction but still too high, so many are not convinced yet.

Can someone explain what the 'corporate action' message is that I've received today about a tender?

The message is as clear as mud.

This has had a good run over the last year (+ 80%) . Possibly over done due to rise in USAtech stocks, but what's with the 7.25% drop in SP today? Seems quite steep.