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I would go a little bit further dimi and say that of course amazon who are for all intent and purposes a monopoly and many people can't live without have big pricing power so will be the first to make cuts.
I see it as a pyramid structure. Your household brands and businesses that people can't live without will be able to increase prices first. Then the 2nd tier will follow and so on. The only issue for asos and boohoo are that they are fairly low down the pyramid compared to others. However things eventually do filter down and cost increases are inevitable....its just a matter of asos and boohoo waiting their turn and not jumping the gun which could prove deadly.
I believe it has now filtered down to asos and boohoo looking at boohoos last TU so margin and ebidta erosion should remain flat and not drteriorate further. But yes, on downturns asos and boohoo will always be slower to react as its the nature of their business and demographic.
On the upside, when things subside and inflationary pressures ease, it will be a race to the bottom again in which boohoo and asos thrive.
Last chance to get in sub £1 by looks of things. Now its time for the pain threshold of shorts to be tested. At £1.20 they would be bricking it, especially the ones who foolishly increased on the turnaround TU. Then we will see boohoo really take off as these unravel.
Comparing this to crimea and Georgia is a bit odd. Ukraine is vastly more pupulus of which virtually all the population is hostile, vastly bigger and vastly more symbolic for both russia and the west. This is going to be a very drawn out affair, and sanctions are not going anywhere anytime soon. The only way this would end well for russia is if putin is removed from office and the new government immediately pull out of ukraine. Fat chance of that happening. Whilst putin is head, sanctions will remain.
With evraz, the russian assets are valued at zero so may as well be completely written off (which the market already has).
The company would be better off cutting out the rot that is russia and working with whatever assets they have left. Easier said than done of course, but this is the only way shareholders will see anything again. This is the risk of operating mines in such volatile geopolitical areas.
Up we go after a few traders taking profit. I'm not interested in 20 or 30%. 3 bag then I'll consider position.
Looks like China is slipping off that fence and dropped a shoe on the west's side. China are the only ones who can reel in putin and putting an end to this war.
How do you fancy a peace prize xi? Think what that would make your regime and global image look like. Covid would be forgiven in a flash
An admirable day by boohoo considering the wider market not being on our side today.
It's just the beginning of boohoo coming back to where it should be. 150p for starters and then we can go from there.
Trolls can try all they like. P&d this, rubbish results that. The fact of the matter is the ship has now been steadied and capital will begin to come back to the sector. A great day, and here's to many more to come.
Saw it on ASOS. Traders and shorters got used to their BOO TU payday so thought it was a sure thing.
Got sucker punched back to reality today. The reality being this is cheaper than dirt.
That TU was definitely a turning point and BOO have finally bottomed out. As long as the macro situation improves, back to business as usual for BOO. Well, not quite usual as BOO have been stress tested to the max, and will come out of this a bigger and more robust company.
Days of this being a penny share are well and truly numbered.
Agreed Damien. Many companoes have posted negative growth during this period. For BOO to still post double digit growth on top of 2020 despite record headwinds like no company has ever faced, I'd say they must have a pretty good business model. Just imagine once the headwind brakes are released and inflation eases back.
This signifies an end to the terminal decline. If things deteriorated further, I was ready to sell up as enough is enough, but on that RNS, I'm not selling a bean and a return to highs is still on the table once inflation and cost headwinds recede.
Would be happy with something along those lines happy. Enjoying the blue skies today. Would be nice to see return rates coming down too. Certainly not hoping for or expecting fireworks, but looking for something to steady the ship.
Let's hope the US don't piis on our parade
Well I timed that pretty good. Watching others having a bounce and knew that THG is a slow burner but ultimately wouldn't be left behind, i stuck in 15k shares at 80.7. Soon as that happened, we had lift off.
I'll take the credit haha. You're all welcome.
Oil companies seem to be in an envious position at the moment. Global stocks are selling off but oil and gold are tracking each others movements and moving inverse to the markets. So whilst global markets sell off, oil increases so acts as a hedge against the wider sell off which shelters oil companies, even dragging them up.
That's why the dip the other day was massively brought into. Conversely, if oil dropped, oil companies would still rally as they get dragged up by the wider market.
One thi gs for sure, Q1 earnings will be through the roof as I can see oil above $100 for the foreseeable future. Forget wall of cash, shell will have a mountain of cash to pay down debt, renewable investments, buybacks galore plus another dividend increase.
Good Times are well and truly back for shell holders.
That's precisely what people will be doing muscles. Going to weatherspoons in boohoo attire. Why you ask?? Because it is cheap!
Discount retailers historically do well when inflation is rampant and the public purses get pinched. The idea of people throwing out their clothes purchased from boohoo after one use is a complete myth fabricated by the media. This simply does not happen.
This is nerves going into the TU. After so many dismal trading updates, you can't blame twitchiness, and I doubt there will be many buyers going into the TU with the exception of norges. Do they know something we don't? Funny time to buy considering what has followed each preceeding TU of late.....unless this time will be different?
Boohoo need to hit their targets without any more dissapointment to steady the ship and at least draw a line under the SP. Any surprises will see those sold out to trade the TU instantly locked out.
Once again, forward looking statements are important. Due to the war, inflation will persist for longer so they must combat this by raising prices to combat margin erosion, and must be seen doing something to protect margins. We need to see plans for this US distribution centre urgently as ASOS US growth is hanging on in there, and previous business model of JIT shipping is too costly and time consuming so clearly a US distribution centre is desperately needed to remain a going concern in USA. Marketing costs are likely to increase due to BOO playing catchup with lost ground in USA, and logistical costs likely to remain high. Infrastructure investment likely to remain high throughout FY22 and 23 because of this. Return rates should have eased back due to virtually no restrictions and much more monotone winter clothing.
There is so much negative news and negative market sentiment out there that it is hard to focus on a particular sector. UK retail seem to be holding out well among all of this.
If anyone from BOO management are reading this, we need to see signs of adaptation and boohoo weathering the storm by making necessary changes. We need signs of BOO's ability to come out of this period in one piece a stronger, more robust company.
For those who believe this sort of behavior doesn't happen....THG is a good case study. THG has 100% been manipulated to this level by unscrupulous players profiteering from its fall, no doubt about it. The very sloppy mass media who fail to verify sources helped precipitate this and ought to be held accountable. The SFO need to look at bringing in new rules and punishments regarding media vectors and those who help facilitate fake news through negligence on their part.
Look at how Tim Martin was villainised over at JDW during the height of covid. Sure many don't like the guy, but what the media said about him was straight up lies and taken completely out of context. Anyone who says otherwise, and rubbish it under some PI conspiracy need to wake up. Any objective person can clearly see foul play here regarding fake news and lies spread about the company.
Proving it however is nigh on impossible, and the SFO and FCA are too inept to act
Agreed. RNS purely to woo back II's. Physically, no damage was done in terms of revenues. The damage of course was all reputational, which spreads like wildfire through association which is why IIs dumped.
Funny to watch this go up as oil cools down. But yes, would be much closer to £25 now if it wasn't for the political situation.
They will be reporting a mountain of cash in Q1 which I'm sure will bring out the ESG windfall tax crew.
I think it was said here the other day, but she in have now introduced new handling fees to uk.
It goes without saying that boohoo must now raise prices to conserve margin if they havent done so already. With oil and inflation where it is, consumers 100% expect this.
I hope this is also highlighted in the TU.