Member Info for WolfofWarks

This is where the TA missed the news flow. It started with the positive trading update, then the negative and then more positive economic outlook sprinkled with Mike buying in and adding.

The news has been wavy to both the positive and negative.

I'd be amazed if he's not just bought another chunk.

Who did they buy off though PeePee?

That's for that enlightenment PeePee ....

'Ultrainvestor got carried away yesterday because the Boohoo share price went up a little bit from 2.30pm yesterday. I guess he was thinking Americans were buying in. Americans weren't buying Boohoo. It was Mike Ashley.

And when Mike Ashley stops buying, the Boohoo share buying stops and the Boohoo share price goes down again.'

Yes because Mike Ashley is the only person who could ever buy Boohoo shares .... Prat!

Oke - what would be the strategic rationale for buyback shares now? It makes no sense - buybacks are for cash cows with excess cash. Boohoo need the money to plug the current gap in trading and finance all the cap ex.

There would be outrage and I doubt the RCF lender would be too impressed.

PeePee you need to learn your financial terms. What you are referring to is gross margin, not final profit margin.

Looking at gross margin in isolation as an investment case is daft as it takes no account of cost base, interest, depreciation, etc.

Stop trying to mislead people.

PeePee - it's threads like this that show you up for the dimwit you are.

The former owners will most likely get a knock at the door at some point given the investigations that are happening, potential action by RevB, etc. At some point it's likely that their assets will be frozen. They are not distressed sellers but they are not participative shareholders either and which be unwise to try to be.

We already know from the RevB investigation that the accounts were being window dressed so it's likely the loan mentioned below was a book entry rather than any actual cash changing hands:

'You don't give out million pound loans if you haven't got the money to do this.'

Plus you mention the world of accounting. This is a tax issue rather than accounting which is mainly governed by international standards anyway and again has no bearing on corporate registration which is a matter for individual governments.

Absolute nonsense Ian. Where a company is registered is not the same as where it is listed. They are two different things. For example BP is registered in UK and listed in UK and US.

They are two different things. The physical HQ will not be in the Caymans. Only a brass plaque there and its corporate address.

Peepee - you’ve plucked 60p out of the air.

You don’t know how to read a P&L and balance sheet so there is zero chance you would have a clue how to value a company.

We know who owns RevB shares, we know who owns BH shares. You don’t need to keep trying to educate us.

Tell us PeePee so the all your wisdom - what other shares do you hold? You must have some examples given you are a famed investor with an on tap broker at your disposal.

I’ve invested in Boohoo several times over the years and done very well out of it.

Debenhams is a start up idea a marketplace. It’s way too early to judge, just like all the others that have been bought recently.

The point is in 2015 it was just boohoo now. Now it’s a diversified multi faceted business that doesn’t just deal in fast fashion. Some of the brands are aimed at completely different markets. Not reliant on young shoppers only either.

So for you to say I don’t understand Boohoo when you clearly don’t understand it on its current form is laughable.

RevB is just another arm to it.

The government still cannot stop them.

We live in a global market where you can register and re-organise a company wherever you like.

'Hosai - Boohoo bought the majority of their REVB shares from Jupiter in November 2022. Jupiter were selling many of their shareholdings after I think Aberdeen bought out Jupiter.

Boohoo paid £15m for their REVB shares because this was stated in Boohoo's final year accounts.'

No they never - Jupiter had 8% of your maths is way off.

Check the RNS out.

'I disagree. Boohoo is no longer the business it was. It's never getting back to what it was. Boohoo knows this. Boohoo need REVB. REVB is what Boohoo was in 2015 albeit in beauty and skincare.

Boohoo know they can grow REVB like they did for Boohoo before Shein and Temu came along..

REVB is Boohoo's future'

PeePee - that's because you are valuing the company at its lowest ebb with maximum headwinds with no prospect of recovery - which is just daft. Just like when you went long at the top and short at the bottom.

You don't seem to have any concept of the acquisitions, the length of time it takes to bed businesses in and grow them.

The company is not even moving it's HQ to the Caymans.

It's the lenders not holding company that is being registered there.

Everything else will then transfer underneath.

'Look at Boohoo's net profit from about 2015 to 2020.'

BH is a different business now with all the brands that have been purchased and are in their infancy relative to BHs ownership of them.

You're not comparing apples with apples.

No it doesn't the market decides what a company is worth and while I would expect there to be some premium payable to take over the company certainly not doubt the value now.

Plus BH have a plan in place to increase turnover over to $4bn. RevB is a very small proportion of the product BH sell.

It's more of a strategic alliance as far as I can see.

CW had to pay UK tax on its UK profits regardless of where the ultimate holding company is registered.

It makes sense to insert regional Midcos to make this easier.

Ian - the UK authorities cannot block the creation of a holding company in another jurisdiction regardless of how unpalatable it might seem.

Glencore, a UK listed company is head quartered in Switzerland.

'I think Boohoo need to buy REVB to get back to making decent profits again.

By decent profits I means 10% net profit from their revenue. '

RevB is a much smaller business than the rest of the Boohoo group and BH only own part of it. So proportional REVB cannot accomplish what you are suggesting even with 100% stake.

Plus why would BH pay 60p a share - it makes no sense to pay that kind of premium based on the current SP.