Member Info for WolfofWarks

Returns are a problem but the key is to automating the final mile, similar to what Amazon, Ocado, Deliveroo etc, are trying to do. It'll come in time.

The problem is the amount of stock that needs to be carried, but this is a problem for store as well.

My wife buys three dresses and sends one back and it drives me nuts. She does the same when she buys in store though as well.

"ABF is a growth stock it will be growing Primark 5 Times in 5 years in Us and 6 times in 5 years in Eastern Europe"

F ucking hell I've heard it all now!

What about the other two businesses it's hitched its wagon to?

If you could invest in Primark directly you might have a point, but you can't.

Growing Primark 5 times? That's going to need a hell of a lot of cash and add to the already billions of lease commitments on what's basically an outdated model.

It depends on how much you want the product. I’m not the BH problem here but I rarely ever send anything back so don’t consider the policies myself.

You cannot get everyone with the same brush.

I’m interested given the pearls of wisdom you constantly furnish you with.

Tbf I don’t believe you’re invested at all and you’re a complete fraud.

But you know, each to their own, etc, etc.

Even with returns you’ve got a lever or two.

You can reduce the time period allowed or charge for the return. If this becomes an industry wide problem that doesn’t look like it’s going away that is what companies will do. If Boohoo and ASOS did it the rest would follow.

Ted Baker already charge around £3-4.

Dan - I’m finding you really tedious now.

I’m not saying EBITDA isn’t important, just took umbrage with your comment that it pays for all cap ex going forward, which isn’t true.

You’ve just highlighted three levers right there in your post. Sale and leaseback of property, finance lease assets, especially to kit out new assets is a tried and trusted method of finance. We could even go back retrospectively and lease out previous spend.

We don’t know the finite detail around creditors and debtors so not too sure how you can be so absolute in your view. We don’t know the monthly working capital spike, how big it is and how long it lasts. For example my best guess would be that we make a lot of sale at month end when our target demographic gets paid. boohoo probably pays suppliers EOM. Debit and credit card receipts won’t credit the bank till the first few days of the following month.

My experience with suppliers is there is always a negotiation to be had and pushing our terms might come at the expense of lost discount or rebate which may still be cheaper than debt.

We could run stock down, etc.

We have an untapped credit facility, we could take out additional borrowing.

There’s many levers to inject cash flow. One thing I’d they are to come to us for a raise they got to have T Rowe on board as a major holder and the other iis.

A lot of money has been and we’ve for to wait for pay back now but it’s a medium to long term game.

Even with returns the company is still growing, just not as fast, to hear yourself and PP bang on like we are in some sort of financial distress is laughable..

I wasn’t poking around you turnip ….

You’re repeatedly posting links up ….

You should see his Twitter feed.

Complete tumbleweed.

“Still better than losing 70% of investment.”

I haven’t lost 70% of any BH investment.

Now come on how long have you been invested in ABF and what is your average?

Did you hit the bottom in Mar-20? Or are you a longer term investor sitting on a decent sized lost going back years?

It’s Xmas share the love …

Kallu - you’re losing your composure.

Step away from the keyboard.

That assignment’s due early Jan.

It’s worse than that. He’s using historic EPS as well.

Warning to all be very wary of listening to anyone on a bulletin board.

“ the reason why you are here night and day slamming me down”

Oh the irony …..

You been drinking Klop? You seem to have the bit between your teeth today.

So you’re basically saying that the future value of the company is it’s current share price.

Share price/eps is the PE Ratio.

Jesus wept ….

“ I really think one of the Kamanis must have slept with your ex for you to hate them so much”

Perhaps the lure of a £1 bath bomb and £0.65 lip stick wasn’t enough to concrete love’s young dream.

The Boohoo mob came steaming in with a £7 boob tube and £15 shacket and you couldn’t see her/him for dust.

“ While I write there are thousands queuing up and hundreds of Primark tills, all making purchases rather than returns - boohoo's case”

That would matter if you were actually invested …. Although even if you’re a long term holder there you are unlikely to have made any money given the decline going back ten years. Then even if Primark wipes the floor the value is averaged out against two other businesses.

Just out of interest Kallu - how long have you been invested in ABF and what’s your average?

You still haven’t answered despite me asking what must be ten times by now.

If you’re dishing out the investment wisdom let’s see the fabric of your fibre ….

Kallu - Japan lost out in the cheap labour war to China and had nothing else to offer. You’re hardly comparing apples with apples.

I’d say following Jeremy Corbyn we’re further away from becoming a socialist country more we’ve ever been. Capitalism is still very much alive.

You been reading your college textbooks over the holidays?

“ah builder/property investor
not long before that pops too”

Folk been saying that for twenty years

The point is Dan we have many levers to pull regardless of EBITDA.

I’d even wager that most CEOs don’t consider EBITDA as being relevant to Capex. Incoming cash will be used to fund working capital if required, perhaps clear down debt or pay a dividend. While large scale capex is underpinned by solid funding with a longer term horizon.

The point being it’s not necessarily sensible to fund cap ex with a 5-10 year horizon with short term cash earnings.