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26p to sell this morning, this share is a continual disappointment. What will it take for the company's shares to break out of this very depressed range?
If I could just shut my laptop down and then look again in a couple of years, I suspect that this (and many of my other shares) would be in perfectly good shape. If only I had the patience!
Yes. Trying to understand, I'm now thinking they very deliberately kitchen sinked all the bad news at once, so to give the new CEO a nice clean sheet going forward. A classic ruse. So my take is that indeed the market's been over-spooked by what is a genuinely awful update. Today's v good inflation news and consequent lowering of interest rate expectations will help our marvellous yet to be announced CEO, who'll take the credit (and the bonus) for any recovery from here. Balance of risk, it's worth a top-up... and I have.
Interesting discussion. What is influence, what is control? How to define the independence (of the directors)? Just statutory or in reality? Having seen Boohoo call the shots in this recent boardroom coup, it's hard for me to believe that the new REVB board will be truly independent of Boohoo's framework.
Anyway, I'd be happy if this now ends the distraction for Boohoo management.
That's a fair point 404. Holt is not a retailer per se, but an experienced 'corporate man', so maybe they think they can do better going forward. The share awards thing, however, is b/s.... hyperbole said in the heat of battle... Boohoo's own share award arrangements scream "pot, kettle, black". It looks like Boohoo is indulging in a bit of empire building, so your comment about removing barriers to control is salient. As said, Holt is too independently minded for Boohoo's tastes - which is a pity for REVB shareholders.
Possibly, but the thing is, they're not saying... so we're left to guess at the reason. Bob Holt is an experienced operator. My take is they (Boohoo) couldn't be sure Holt would tow the Boohoo line, i.e. act independently. If I was a REVB shareholder, I'd want the management to act exclusively in the interests of the company, without any hint of a conflict of interest with Boohoo. Anyway, Boohoo has won this fight so we'll never know if REVB might have done better under Holt's ongoing management than Boohoo's people. If they can make their investment work, I guess as a BOO shareholder it's a net positive for me, speaking selfishly.
Thank you gents, but I'm no oracle. I personally welcome all views, incl that the co. might go bust, but to be civil about it.
We might want to add a 5th possibility to the list, which is that the co. manages to trade its way into a better situation by booking some meaningful sales. That wouldn't be an end in itself, but more likely a stepping stone along a journey towards an equity raise or a sale/part sale of the business at levels more rewarding for current shareholders. It's still very early days since approval and the Philips deal.
Final thought. We shouldn't be too hard on ourselves or each other. No one is making money in UK small caps, esp pre-profitable ones atm. We must be going through one of the toughest investment climates ever, as we unravel a decade of free money. People holding onto companies like POLX must be hoping the investment climate changes, i.e. inflation tamed, interest rate/discount rate/'risk free' rate drops, and companies which have had their valuations utterly depressed receive a big boost. That's my hope. No guarantees though. Patience and a strong stomach required.
That's a perfectly fair bearish viewpoint. However, I'd elevate the likelihood of an equity raise (pt.2) and diminish the likelihood of bankruptcy (pt.4). The tech is too good for bankruptcy to happen and in my opinion there would be buyers in a placement, the only question is how bad is the dilution would be and that'll depend on general sentiment at that time and how far the company is away from profitability in participants' opinion.
My order of likelihood would be:
sale/part sale (pt.3);
equity raise (pt.2);
borrowing (pt.1);
bankruptcy (pt.4).
I have to say, none of the above are necessarily good for current shareholders. Key is to keep position size commensurate with the risk - my investment here represents 0.5% of my portfolio.
Good morning Boohoo warriors. Great day at the tennis, all hail King Carlos!
Monday morning and it's down to earth with a bump with Boohoo at the foot of the AIM 100 list once again.
Utterly depressing, what will it take to change the relentlessly negative narrative? If Boohoo was a Wimbledon tennis court, it would be brown and parched, without a hint of a green shoot.
A tender offer - that would've been nice! It's still early days, I accept, but if the massive discount persists, they'll eventually have to do something major to fix it... even a continuation vote.
Of course the elephant in the room is the NAV. The massive (70%!) discount tells us that the market has been seriously questioning the apparent resilience of the NAV over what has been generally a dreadful period for growth stocks. FWIW, Seraphim’s Mark Boggett addresses the issue directly in this interview from 2 days ago:
https://www.youtube.com/watch?v=iiRK2Mw4jio
At least this buyback shows they have the confidence to put their money where their mouth is, but I suspect there isn't much cash lying around so it remains to be seen how far they utilise it. As a holder, today's a good day, but I do wonder if this turns out to be more a PR stunt than a reality...
And the decline continues. 62p to sell this morning. Recent resignation of NED Louise Barton can't be helping. Will she cash in some or all of her considerable number of shares? One imagines she might.
With plenty cash on the balance sheet, 62p looks compelling but in this climate one needs to be v brave to put fresh money into tiny market cap minnows.... and that is part of the problem I guess.
Disappointed. Should've taken my loss months ago.