Member Info for wyndrum

bricks, I am not denying that Boo is a growth stock and is likely to be so for a few years, all I am trying to get across is that at some stage the "growth" premium will diminish and the Sp will eventually I guess, turn into a "Next-like" company and become, as you say a value/income stock.
Tech stocks often have patents and high barriers to entry (or both) to support their high valuations, I don't see that in Boo, I also see that the business model is highly vulnerable to celeb endorsements, which is fine while you have them.

None of this right now concerns me, but I think these are reasons why the valuation is lower than you think it should be and why I think it is justifiable now, but nevertheless susceptible to a be rerated downwards sooner than clearly you think.

Bricks, don't worry about my trading career, (although that is nice of you),
What do you think Boo's likely growth will be over the next 12 years say? if it grows at 50% a year it would be ball park turnover of £100b. Do you think that likely?
This aint a tech stock and right now we are on the upward curve and we should all enjoy the ride but this is not going to be able to sustain tech stock-like valuations for ever (or even for a decade)

Bricks: you said "Don't even know why I respond to these ridiculous posts tbh but I think when someone compares Next P/E to Boo, that says it all..."

how do you see NEXT different to Boo? (forget the PER and share price)

Hi bricks, I understand you have a different view point but the price earnings ratio is a widely held metric to value ALL companies, including growth stocks.
Why do you think Boo is "undervalued" what is it you see that the market does not, what should the PE be in your opinion?
(Also I don't agree with you analysis that the valuation of boo was not connected to the story. But I don't think we will end up agreeing on that.)

Clearly the market see's Boo as a disrupter, a new way of doing things that will allow rapid gain of market share against its competition with a commensurate surge in profits. This type of company is normally a technology stock. The "problem" for boo, is its actually pretty low tech and its "barriers to entry" are limited. (That's not to say it is easy for a new company to take on or replace Boo, but there are already big brands out there that will be trying to mimic Boo's business model and have the funds to do it.) But as I say, easier said then done.
KK, share prices often, (always?) over reach themselves both in becoming overbought and oversold. So when they went up to 433p in a bit of a frenzy, a quick reassessment was made and they came off the top, but to be fair, not that much.
More pertinent I think, was the slavery story. One slip and the SP halved......
Lets assume now that that is yesterdays news and no longer relevant. But the dramatic fall will have reminded many investors of the huge premium on the stock and how vunerable the SP is to unforeseen news.
I think the update will show a huge surge in sales, not just like for like but the recent new brands making more of a contribution, the Middle East market access and growth in the US, as well as rumours or even confirmation of new brand acquisitions, so I see 450p ish as a realistic goal on the day or within a week or so as it sinks in. (I think had there been no slavery story, the shares would already be close to that 500p mark but as I said up top, I think the premium has for now, had to be reined back as the risk appetite may now be not quite as it was then.

in case any have been wondering why Boo's SP still seems somewhat rooted given every company reporting is declaring ballistic on line sales I will remind all again that Boo is already very highly valued.
As an example Next have a PER of 13.06
Boo has a PER of 52.33. So Boo is valued at 4 times greater than Next
Next's full year accounts last year showed £4b turn over with £750m profit
Boo's last year accounts showed £1.2b turnover and £73m profit
And Boo are valued 4 times GREATER than Next.
This shows the high premium already levied on Boo to continue to grow at a colossal rate. (I think they will not disappoint this time around but at the same time shareholders must appreciate that this is not a one way ticket as, at some stage, Boo's valuation will reduce to the mean. (if it did it over night you could divide the SP by 4 and be looking at 80p per share....)
As I say I think there is still plenty of gas in the tank now but to project 20 years ahead and a £60 share price is a best I think a stretch

Is it me, or has that been almost a cut n paste from the last update? (I did mention in a previous post that it was likely a "fudged" update was the probably outcome).

I guess if you have held this long you can hold for another 6 months? No news on KL, no news on cash raising except to leave it there hanging...

Oh well,

Very promising rise right at the end bodes well for tomorrow. Hope all goes well
All the best

Good luck with Kier tomorrow. ( I think the last 30 minutes of trading today may well be an indicator) Fingers tightly crossed.

Li, the other side of the Boots coin is that they tend to advertise heavily at Xmas (their 3 for 2 gift range is normally quite popular although i don't see EVE products being a part of that promo), and obviously with most going on line now, people won't be going into those "dreadful" stores anyway.
(Anyway, as you know i'm out for now, but its another revenue stream which I think is very important however little it might deliver esp given where turnover is currently)

sorry streets I mis read the intent, but there are always going to be short term trades in any growth stock, so your wish is not likely to come true over the next 20 years or so

so Streets, just to understand, you don't want anybody, day traders and robots to sell, as that might bring the price down (artificially), rather people just to keep buying to manipulate the Sp upwards....?

So you don't mind a "false " SP just as long as it goes up and you profit from it?

Hi DG, I think we have different definitions of risk and reward though.
My risk reward criteria when i buy a stock is around how much I could lose against my "expected" potential return. I don't think any share is particularly "safe" in the sense it can' fall (quite a lot) in value.
All shares are valued today on future performance and EVE is no different, it has to live up to future expectations or it will fall in value. (I see no reason why it should right here, right now, but a halt in sales growth on the next update could see the SP back to 3p? Who knows. Nothing is a given.

looks like the market is just revisiting an intraday figure of 315.5, ( normally the market gives an opportunity to get in back at a good price for the ones who missed it first time round.

KK, Not owned by Boohoo just by the same directors who own boohoo. Therefore nothing to do with Boohoo

Hi Dg, I'm not going to go all negative now just because I am out, but if the 6 people max/household stays in place presumably it will reduce demand for households needing to put up guests at xmas and parties and the like?
I think there is growth to come but right now over the next 12 months I think its maybe somewhere between 7-10p? Obviously I will keep an eye on this but there are still a number of recovery plays. (airlines & the travel industry, on line companies as well as the gene therapy markets.) but on the very plus side, I don't see much downside here at Eve, maybe 4.5p-5p at worst, if at all?
Anyway good luck. Patience is usually rewarded!!

I guess you are using the 1 week 15minute chart?
if so yes, I see yesterday the RSI fell to 24.60 (SP 5.5p) (anything below 20 would suggest oversold in a downward trend, so not a screaming buy.) The rsi was higher when the Sp was lower at 5.4 later on
Now the SP is 5.58p and the RSI is 48.69 as I type. so, as you can see there is plenty of room for the SP to fall again without going into "oversold" territory.
But, and here's the rub, it may have bottomed at 5.4p and is now recovering.
Which one is it? FWIW the pattern the RSI has made suggest it has more likely bottomed out. For an SP chart, you would wait for confirmation for 5.8p to be broken.
With such large spreads its difficult to get in at the "right" price to benefit from a 10% swing which in the normal way could be very profitable trading.
As I said earlier I don't see rapid growth now. We have had that over the last few months and the latest update has, imo, halted momentum for now.
Other fish to fry.....

PP cant see this but, hey ho...
"Nobody knows when the share price will reach £4. The thing with shares is that you can never rely on what's happened in the past to occur again. Yes, they may well be educated opinions, however, at the end of the day nobody can know."

That's some admission from somebody who assumes it will be £60 one day....in 20 years.... (would that be 20 years in the morning or afternoon?)

10p by Xmas?, I am not sure why Tims, The update today only confirmed what CC said on the 3rd "ahead of expectations" update. The Sp went up to 7p on that info and has fallen back about 20% from there. It needs to rise 30% to have another go at 7p, and 100% to see 10p. But based on what exactly? I think 10p is 12 months away now unless sales really take off, but in this climate its a difficult prediction to make I would suggest. (other than blind optimism)

KK, I imagine its because Boo is already highly valued and the cloud that hangs over it currently is a big deterrent to many buyers. Capital preservation is far more important than a perceived risky bet. And at the moment the risk reward seems pretty even right now between buyers and sellers. However at some stage (soon I think) those who want to sell will have done so which only then leaves one direction for the SP to go.