I've added this morning. Nothing is for certain, nothing without risk, but this is simply too cheap given the net cash position and the well covered yield. Provided the next trading update is not another disappointment, this will do well from here in my view.
RE: Make sure your holdings are cashed up24 Jun 2022 13:03
Chill trading. I posted a general comment on this board, that's all. I'm really not going to find out the 20 most popular boards (most of which I won't own shares) and post the comment on each of them, am I? Quit bickering.
Yes, the financing operation is a concern but they seem to be winding it down. As for the debt, they also have a fair amount of cash on the balance sheet. I believe they are well financed following the £100m raise in Nov 2020. Plus it's a low, low price and a recent director buy was at a price above today's... Anyway, these are opinions.
RE: Make sure your holdings are cashed up24 Jun 2022 11:05
If you really want the specific answers, they are: - I didn't know there was a general board; - It's my opinion and I believe it's critical; - Boohoo may be the 11th most popular board, but it's the most popular of shares I own.
RE: Make sure your holdings are cashed up24 Jun 2022 10:51
Touchy as always, aren't you? If you're that nervous about your holding in Boohoo, perhaps you should sell up. And if you don't think it's worth paying particular attention to the balance sheet strength of your holdings in the light of recent events, that's fine and good luck.
RE: Make sure your holdings are cashed up24 Jun 2022 09:53
"This may be true, but you can extend this logic to all listed companies with any level of debt." No you can't. Corporate debt is not a problem if it's supported by strong cash generation. "Does seem odd you've chosen an online retailer with very little debt." Eh? I'm not casting aspersions towards Boohoo, just making a general comment.
Make sure your holdings are cashed up24 Jun 2022 09:24
Yesterday Naked Wines dropped 45% on news that they may breach their banking covenants; today Lamprell plc tanks 80% on news that they are being forced to consider a cheeky low-ball offer from one of their shareholders, due to a severe liquidity position. This is just the beginning. There's bound to be many more of these nasty events coming...
If I'd just come across this share I might be tempted too, but not after this morning - that was the quickest loss I've ever made. I don't like the way management communicated (or didn't communicate) this loan and its possible breach. Such material information buried away in the RNS...
ShearClass: "Why this wasn't disclosed in the outlook statement is completely beyond me. It's why it opened at £2.76 and not substantially lower. Absolutely shocking." Totally right. It's what suckered me in.
Thank you ShearClass, it was there. They say they're ok under their base case assumptions, but they will breach under their 'downside scenario'. Given what may be ahead, that's a big risk. Teach me to be so impulsive.