Member Info for WolfofWarks

‘ Thank you PDS2023 - Its called revolving because its meant to be a "short term" plug for working capital requirements, cash that is needed for the business itself to function.’

Not it’s not it’s called revolving because it’s a series of loans than are drawn down and expanded or contracted to meet capital demands at any given time.

So for example in the case of BH they could repay some or all of it one month if they have spare cash and then the following month draw it back down again.

It’s not short term like an overdraft and the facility will be refinanced or moved to another provider or different type of instrument when it falls due.

It’s a pretty standard form of finance that thousands of companies use day in day out.

As usual you are talking like an expert about something in reality you know nothing about.

I don’t think it’s a new issue. It’s just an issue that improved during covid because of the dress mix reducing and is now returning normal.

Hi DC - I think the problem with the online fashion model is it's gone through a period of maximum stress, headwinds, etc.

The bet now is on a a macro headwinds. We can see from the ASOS results the direct impact of easing headwinds like material cost and airfreight adding 1.5% back onto the margin. Is it then becomes a play on whether BH's new US proposition is attractive to the US market. They certainly seem to be spending money on the launch in terms of marketing so who knows from here.

The only certainty we have is that there is an underlying trend from high street stores which are still closing to online. It's likely that the consolidation on online retailers will continue and only the strongest will survive.

'Sadly, there are always those who will hate me. That's life. Good luck with your investments. I wish you good fortune with them.'

"Do as you would be done by"

Any angst has been brought on purely by yourself. You wouldn't realise this though as you are completely self unaware.

DC - it’s in line with guidance so largely priced in I would expect.

'Market sentiment for Boo remains predominantly fragile. It puts them an unenviable position for results next week in that they have to be good everywhere just to stay here. A sniff of weakness, like continued revenue decline, won't be tolerated and a visit to the 20s the likely result.'

Hi DC - The board have already guided for a 10-15% revenue decline. It's quite possible it could be worse given the read through for July and August bad weather from the ASOS results.

Although their gross margin has improved by 1.5% from the reduced costs and air freight. They have sold less but have more quality profitable sales which is the same strategy Boohoo are chasing. So while their sales are down dramatically there EBIT has increased by I think the report said around 50%.

PeePer - are you simple or something?

PeePer - you oozing desperation here. It’s pathetic.

Marketing is part and parcel of business. Speculate to accumulate and all that. The good thing about digital marketing is its traceable and measureabke through to sale, unlike other traditional forms of marketing.

You’ve clearly never been in and around a business. Stick to misreading your books.

PeePer - you’re clearly thick as mince and beyond help living in your own reality.

PeePee - no one on this board believes your now apparent investments. I’ve asked you countless times and you’ve never answered. Now you can’t shut up about them.

It’s all nonsense. You are Walter Mitty.

PeePer - that’s because it’s the first time the UK number have been released and only because they have moved their HQ to Singapore. Until now there has been jack. Those numbers have confirmed when I have been telling you that they cannot make serious cash at their selling price and this is also why they need continuous fund raises. They are not far off giving the stuff away.

PeePer - I’ve been waiting for your commentary on the Shein results, particularly the gross margin of 2.34% when you yourself tell us that a margin of 55% is needed in order to survive.

Give that broker a call.

Peeper - from your good friends at investopedia

https://www.investopedia.com/terms/v/volumeoftrade.asp#:~:text=Example%20of%20Volume%20of%20Trade&text=The%20first%20trader%20buys%20500,ABC%20%2B%20250%20XYZ%20shares).

Is all you’ve got to do is google it. You’re usually good at that.

Hex - it could also be that it’s very difficult to sell a dress for £3 and ship by air freight from China and expect to make a margin.

Golden - There is clearly a market rate for each garment and we know that you cannot sell a dress for £3 and expect to make a profit even if it is made in China. All manufacturers have marketing, etc.

I work for a group of companies and we have to make sure inter group cross border transactions are bona fide. Usually the kind of manipulation you are referring to is done via trademark ownership, IE charges between jurisdictions which can be justified.

What you are suggesting would be hugely suspect. Also there's not a lot in the accounts so what is happening is highly transparent - hard to bury bad news in that way here with such little subject matter.

Hi golden - They would fall foul of the transfer pricing rules.

When I had a look on google it looks like it was started in 2003. So it’s more like 20 years old.

'I wonder - can anyone list the gross margin for both shein and boohoo?'

PeePer Benchmark - 55%

Boohoo - 50.6%

Shein 2.34%

Let's workshop this. So Shein sell a top for £3 - of this they give the vat man £0.50 and then make 2.34% on the £2.50 after they have shipped it from China - so 5.85p.

That kind of margin is only sustainable for high value low quantity transactions - thing huge construction or facilities contracts that companies like Balfour Beattie or Serco might get involved in. It doesn't work for cheap tat off t'internet.

PeePee - A trade has two sides a buy and a sell. So in your example below of 5m there are 5m buys and 5m sells. Shares do not magic out of thin air. So 10m transactions for the brokers but the volume is 5m shares traded.

Real simple stuff, amazing how you can get it so wrong and the real magic is that you keep repeating it completely unaware.