Member Info for Wibblewobble1

Kwartang ' scrambling to reassure market'
https://www.dailymail.co.uk/news/article-11180643/Liz-Truss-mulls-100BILLION-package-freeze-energy-bills.html

With UK debt to gdp at 100% letting the printing presses loose may not be the best way forward.....a run on a currency isnt pretty

This is still the phoney war pre recession....it could get very very ugly for BOO

Fast fashion such as boo gets worn five times before being disposed of....do you really think that wastefulness will continue in a fierce recession when youngsters will have so much less money

Wasnt she described as Mad Bad and Dangerous.....i think the market would have preferred Sunak

Doesnt help that online retailers like asos and boo cant turn a profit and we are not even in the recession yet.....how low will they go when things get really bad?

Take the liquidation value of BOO's assets and that is the value underpinning the share price, not the inflated £500m oft quoted

Boo needs to deliver actual tangible improvement on the next update....all this jam tommorow wont cut it anymore. They have to justify a £500 million market cap or it will just keep falling imho

The 40s havent lasted long, makes you wonder where the bottom is.....i still recon £150m or 14p is as good a guess as any

Currently at a modest 10.4% but rocketing energy costs set to close a swathe of small business. With an undoubted impact on BOO target market .

Ajones...that is the likely choice of current management as it retains value for them so no doubt they would drive for it. You would have to get the bondholders on board and raise the finance to keep the wheels turning round in the short medium term....am sure the motivation is there....probably the current sp will reflect which option is winning over the coming weeks

Or they could come up with option 3

You dont have 200 billion shares you consolidate

You may not like it but its an option.....another option would be to canvas potential buyers to get a ballpark potential purchase price for a debt free operation.....then go back to the bond holders and get them to haircut the debt down to that valuation....sell the company, pay of the bond holders but sadly existing shareholders get nothing at all i am afraid.....although an option this one would probably leave the bondholders holding new replacement debt as highly unlikely a cash buyer is lurking in the undergrowth although who knows if Disney would be interest....obviously the more interest the less of a haircut for bondholders.

Could be in the ballpark if you could persuade the bond holders to take a £3billion haircut on the deal and swop the new paper for the remaining £2 billion debt.....that would produce a debt free business with a £2 billion valuation.
All totally hypothetical as it depends if the bondholders want to be left with paper....if £2billion is a realistic valuation for a debt free company, adjust paper printing according to what fair value it believed to be.....increase or reduce printing depending on 1p being a too generous or too stingy discount to sp on day of paper production.....increase printing to cover raising of funds to cover short term funding needs (assuming anyone would be willing to do it)

Once you get to your number of new shares to be issued do a consolidation to get to a manageable share base . At this point todays shareholders would be consolidated to near worthless holdings.

All back of an envelope but gives the general approach of going this particular route

Something of a novelty, best good fortune

With uk labour paid at £9 per hour and overseas labour paid at £1 per hour, it is difficult to see uk labour costs as anything other than a very high component. Something that i am sure drags on profitabilty of the company as a whole.

You are absolutely correct, boo did not pay anyone £3.50 an hour but the 'management' of boo had for years worked extremely closely with manufacturers. I am somewhat incredulous that it is suggested that Boo did not benefit from contracts priced on the basis of extremely low labour costs be it innocent on their part.

Step 1. Convince the institutions to agree to write off most or at least a significant amount of debt
Step 2. In return for their generosity print zillions of new shares and give them to the institutions thus diluting the existing share holders to buggery
Step 3. Consolidate those zillions of shares into manageable numbers thus giving a few 'new' shares to existing holders

This plan is only being considered because the 'management' are trying to save something of their holding

In most cases this would already have gone bust if it was totally a uk operating company. The senior debt holders would have wiped out the current share holders and sold the company for a couple of £billion with no debt....they would have taken a haircut but it would have been clean

I am really not having a go at the company or trying to deramp anything, i simply can not see how Boo will turn a profit without changing their business model....now that is a possibilty but change to what?.....i thought the 60% of production overseas could have their costs cut but that wouldnt work as costs would need to be cut by 65% and that was just a daft idea.