This Guardian article has29 Aug 2020 10:29
Knocked about £350 million from Boohoo’s valuation. So, the question you need to ask yourself is - is this warranted? £350 million! I’m desperately hoping this opens under 300 on Tuesday, so I can add one final tranche and then sit back and wait for money to talk after the late September update. Personally, my view is that the update will show Boohoo as posting its best ever results, record growth and showing the market that it is once and for all the fastest growing £1billion plus company in the U.K. we’ve been through all this before back when the original Times article broke. There will be repercussions and monetary costs to Boohoo but this will be in the tens of millions (to fix the supply chain issues). As discussed at length, the impact on sales will be minimal and we are going through a 5 year to 1 one year acceleration in the shift from high street to online shopping. All recent retailer updates show online sales as booming - Boohoo is the market leader in this space and in times of economic trouble, cheap and value retailers win out! I said that buying in at £2-2.30 earlier this year was the best opportunity for investing I’ve seen in a long time. This 10 percent Boohoo sale is a great last chance for existing holders to top up and for new investors to get on board the unstoppable train that is Boohoo. One final point, the last drop was a result of a major institutional investor selling out, coupled with retail investor panic selling. The remaining institutional investors are well aware the supply chain issues and are waiting for the full investigation report to be produced. My bet is that when they see the huge growth and £££ being made by Boohoo and the commitments the company makes to cleaning up the mess, they won’t be dumping their stock! Strap in tight - don’t be a woke, Guardian reading sissy of an investor - be a greedy capitalist and take this opportunity. Thank me later. Over and out - I’ll be back in a few weeks to say ‘i told you so’!