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and.... I'm back in the blue!!!
Sold a bit of profit from Boo and another share yesterday and am in on this one from yesterday.
It seems below value again, like Boo, although I do think much higher risk. The brands are well known with a strong client base (different to Boo) used to buying on line.
Quite a nice bit of diversity from Boo but neatly correlated
Nothing moves in a straight line... PI’s will take short term profit (not all) but II’s rarely do. To this end, the mere fact we’re talking about it suggests some maybe considering consolidating.
I took some profit at 315 yesterday to put elsewhere, but am in the main remaining invested
I can see both sides here, and I actually agree with both.
The suggestion that we could be talking a couple of years to see the best of the share price is probably about right. Time to allow for the new lending model, FCA compliance (and how slowly that wheel grinds), complaint settlements etc...
However, there will be shorter term plays... the fact that the business is reporting it is heading in the right direction, small pieces of good news etc... will only give more optimism and a greater buy in, which will of course push the price on.
The journey is likely to be bumpy and we might see the 2 year price actually occur, albeit short lived, much sooner than then.
None of us have a crystal ball, so predicting how high she goes or when is purely guesswork right now. You can't value a business like this right now as it's value lies in the belief in the strategy.
Personally, I'm in now, I might take short term gains on the journey, or I might not... it just depends
GLA
Reasonable post to be fair from a newbie: your buying pattern suggests that you had less faith when the price was low and as is typical with investor psychology you buy more when the price is higher. I'd suggest that before you buy, make sure that you have done your due dilligence and research well so as to give you confidence to buy more earlier. If you believe a share price will go down have patience and wait it out. If you believe it will rise then invest what you can afford.
I bought at 220, and my rationale in part was that the directors bought at 214... they know better than me. I did top up at 260 as well because I could see that it was mainly sentiment that was holding this back and broker ratings suggested 350-400, which is a great profit if we get there. If it retraced at all, I'd just be happy that my decision was based upon my own research
GL and above all DYOR
And if low 200’s are about right then the directors have no clue as they bought heavily at 214!!
For what it's worth, here's my two pennerth...
If you look at the accounts for Boo over the last few years we have seen huge increases in sales and profits, they also have little debt. They have taken over Oasis and Warehouse, and I would suspect may target other retailers.
Someone said that people aren't buying clothes because they can't go out: I can tell you now, by the amount of deliveries I get to my house every week that firstly people are buying clothes and they are going out... my daughter isn't going out out but is going to small garden parties and both her and her friends want to dress up. Equally, Boo does not sell only going out clothes, and people are buying ordinary day to day clothes.
By comparison, the high street seems quiet but online sales are still strong, and I suspect that this trend will continue as we go trough various lockdown measures.
So, all of these positives, let alone the discount that this share seems to be trading at; lets look at the negatives:
Yes, sales will have dropped this year, that's inevitable, but is it always to be this way?
Yes, they have been slated for using the "sweat shops" but firstly it's still not completely clear as to the situation here and secondly are they the only ones?
As well, even if the investigations prove that they were in the wrong, will it really stop the likes of my daughter buying? They are low cost clothing providers and as such for those with little spare income they will still be doing business. I think the affects of this are likely to be short lived... I seem to remember Adidas had a problem many years ago for using sweatshops... they're still here!
In summary, I believe the current price is good value, the business fundamentals are good and an increase in SP longer term is inevitable. Sentiment is lower right now as people question their ethics but in my experience, these thoughts are short lived as long as Boo does something positive.
Have a great weekend all and of course DYOR
lol Shezer, that sounds like me, I've been scraping around the dogs of my portfolio to top up without wanting to go all in balls deep. This is by far my biggest holding now, although I still have quite a diverse portfolio and no where near as much as some of you guys out there, but for me it's what I can afford and what I consider to be my "play money".
I, like you am looking forward to Monday... how weird is that!
GLA and have a lovely weekend!
I’m averaged at about 22p so in profit, and also heavy into amigo and have a smallish holding in Hurricane. Also in Hemo for a bit and just breaking even there too
And 10% is a helluva lot! I do strongly believe MM’s are building a position given volumes we’ve seen over the last couple of days. Topped up again today so this is my largest holding by far!
GLA
Ah ok, so hearsay then!
Word to the wise... if you ramp a share with no reasoning then expect the wrath of the board.
Also, be careful of "inside knowledge"... if they are of a level in the firm that means information is sensitive and you trade on the basis of that it's insider trading. if your pals are (forgive me) mere minions, then where have they heard this from as it's probably old news.
Anyway, I'm a holder so, if it does go bang then I will be very happy :-)
GLA and DYOR especially!
Um, why??? why is there a big bang coming?
Personally, I'm holding, not loading up at all and not selling for the sake.
I think there are many negatives still to come, as you say unemployment, China, 2nd waves, the US etc... but not all business are affected by this.
Specifically with Lamprell, they are taking on huge numbers of staff so I can't see the unemployment thing being an issue. Even if there is a 2nd wave , which I suspect will be the case around flu season, there is still a huge demand for their business.
On the flip side, businesses such as Cine, Marstons, IAG etc... rely on people being able to afford to use their services directly, so I am out of those for now. The only business of this ilk I am still in is Boo... it's had a bad run, but seems to be hugely undervalued and has a good broker rating (ok, perhaps longer term, but I'll take profits along the way)
Pharma's I am still in as research has to continue... illness doesn't go away
GL and of course DYOR, and IMHO
Have a great weekend
And JB's sale seems to have been put through as a series of 15000 sales today?
This was exactly my thought, will we see a strong blue day only followed by a retrace to 20-22p?
phew... just literally watched them get wiped off the board to a blank... wondered what the hell was going on
And they're back again!
All trades have just been wiped off??
I get the feeling that the MM's are holding this back somehow? There are loads of buy transactions going through but the price just holds steady or even drops a little.
It is also possible with some ISA providers to do an in specie transfer of the shares themselves... you'll need to check with your current provider but you could also switch providers