Incredible. On essentially flat revenues & flat margins/profitability at the gross level, they've managed to go from a profit to a loss before tax and see their EBITDA plummet. How? Easy. Just up the headcount by 28%. Inept. Much smarter investors than me have been wrong-footed here.
Answering my own question, with apparently no trade or PE interest in buying the business and with the critical issue of the US listing unresolved, the sp keeps drifting through all-time lows.
Despite the 'cheapness' seems no one's buying to average down anymore. I can't see a reason why they would. I'm certainly not although it's sad to see my once significant holding become valueless.
No investor support for RENX, situation feels hopeless.
SP is back where it was when I first bought BVXP in March 2020. I don't think this credits the company for progress made over the past 4 years... but we shall see!
I continue to think sp weakness is connected to rumours that the tax advantages for AIM shares may be removed. Also that the likely changes to CGT rates is encouraging investors to sell in order to realise gains now and then buy back later. If I'm right, then this may be a decent opportunity to invest in a v high quality company. That's how I see it and I've added to my holding on that basis this morning.
I read somewhere that Rachel Reeves, as part of her tax raising measures, may remove the tax advantages attached to AIM shares. Should there be any truth in it, a long-standing highly rated stalwart of the 'AIM 100' may cop it a bit more than most. Could these rumours be causing the weakness? We'll know soon enough I guess (30th October?), but one can only hope that Ms Reeves wouldn't be so short-sighted given that she is also trying to engender growth.
"To us, the short life of the US warehouse - previously stated as a key pillar of growth for Boohoo - is concerning, highlighting a naivety of the American market, along with a waste of time and resources." Shore Capital.
A drop of almost 40% in barely 2 months, that's nasty in anyone's language! Volatility has been extraordinary and I guess I've been far too optimistic holding on.
Hey, thanks Ironminded, just loving yr tips! Yes indeed, today really was a great day.....now my average is soooo low, it's just great! Ok...so, I've spent the cash, now when do we make the money?
Problem is there's no corporate governance at Boohoo, no independent board to speak of who could do something about Lyttle. They're all in it together, thick as thieves I'm afraid.
Old T4G used to go on and on (and on) about the new US distribution facility and how money invested there would totally transform the efficiency and cost of doing business in the USA. Whoops.