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Boohoo Share Discussion Threads
Showing 7676 to 7700 of 7700 messages
|Agree double too cheap.|
|AMZN just needs to take their loose change and takeover BOO with management on board. Mine are for sale - but only at double the current share price :-)|
|Good post Cycle2; especially point 4 riposte to AMZN potential competition.|
|Cycle2, Excellent post, I agree with everything you say. Amazon shouldn't be taken lightly though, they can buy themselves into any market, their market cap dwarfs most retail stocks put together.|
"takeovers are fraught with danger and cracking the US is not easy."
That's exactly the point:
1. They haven't done a takeover. They simply acquired a 'hot' customer database of perfect-fit customers at a ridiculously low price and the brand IP which will mean that their offering still resonates with the Nasty Gal customer base. It's brilliant and I'm amazed they pulled this off. None of the usual takeover complications.
2. They're already cracking the US: 200% growth in recent results.
3. Here's an interesting thing I've learnt from my own internet business (with the US vs the UK). The UK retail internet market actually *leads* the US - we have higher internet shopping rates and things often work here first before being adopted over there. BOO have cleverly tapped into the new social selling paradigm that this younger generation responds to. It's perfect to now take that proven model to the US.
4. In contrast, Amazon don't have the 50+ years of family sourcing experience of BOO (they're not designers or manufacturers - as I mentioned before, they're box shifters and clever at making the retail experience frictionless). In fast fashion clothing the responsive design and quick manufacture matter much more than the ability to shift boxes. Amazon are great at cracking markets where all you have to do is advertise and ship a box. BOO is doing so much more in responding to the fashion trends of young up-and-coming shoppers and Amazon would have a really really hard time competing with that, even if their focus was 100% on it (which it isn't). I suggest that Amazon will be more effective at competing with older ex-M&S or Next shoppers who are now surfing the net in their spare time, not those on Instagram or following VLoggers.
5. Nasty Gal failed on the execution part - they got the brand part right, which is why they expanded so quickly but neglected basic business profitability. BOO management have years of experience in the execution part (going back years before BooHoo launched) and get the brand part too.|
|che7win I would imagine they bid for Nasty too. BH are very clever and make it look easy, people can easily overlook the 50 or so years the family have in the garment industry. Don't be fooled by headlines.|
Your first two points are share price related I.e. not the point I am making, I'm interested in the business growth here.
Point 3 I accept, at the same time, takeovers are fraught with danger and cracking the US is not easy.
Nasty girl business made a mess of it.
I take it you haven't seen this article:
|Good post cycle cycle2.|
|Thanks Rick. I looked at Misguided once -pretty certain that is privately owned. Interesting that its also based in Manchester.|
|Misguided would be a great add on for Boohoo - I think they are also based in Manchester or North West and the owners are probably mates with Boohoo.£100m revenue and about £5m profit.|
|Zalando is listed market cap 9.3 billion. Few adverts on TV but way behind BooHoo in my opinion.|
|Ive checked and it seems to be a German private company.|
|@ch7win: You are correct that with many high-priced stocks there is a danger of a 50% fall if they make an incorrect move.
However, a closer examination of BOO will reveal several factors that make this highly unlikely:
1. Whenever the price has tried to dip significantly there has been increased buying from institutional sellers. Since we hit the 100 and 120 barriers there has (in my opinion) been a big shift in holding from retail investors to institutions as they've started to realise the potential of BOO and are in 'catch up' mode. Just look at the holding RNSs that have come out.
These institutional sellers are influenced by ratings upgrades, of which there have been several over the past few months. This provides some level of 'floor' of long-term investment who see this as the next ASOS and in it for more than a quick flip of a share.
2. Boohoo mangagement have already had their 50% drop. If you know the share well, you'll recognise that was the shock that came 6 months after IPO. Management had their fingers burnt badly with that. Ever since then they've been carefully managing investor expectations, always leaving a little room for upside surprises. A shock is therefore unlikely.
3. The explosive growth abroad, particularly in the US, means that the high P/E won't remain high for long. This is compounded by the recent massive customer acquisition deals of Nasty Gal and PLT, with the US market wide open to this new fashion business model.
I'm not saying a shock couldn't happen - it could with any share. However, these three points give resilience to the share price which makes a massive fall unlikely.
As for Amazon moving into this space - have you tried shopping for clothes on Amazon? They're box shifters and in no way have the deep understanding of how to excite people about fashion. BOO are focussed and tapping into a social generation. Amazon have diluted focus and don't have a finger on the pulse of the market BOO is reaching. They also don't have design excellence and have never set themselves up to do that. BOO's whole business model is based on the fast 'test and repeat' model which relies on excellent execution in the "stylish design to supply chain to social influencers to website" model they have developed.|
|who owns Zalando?|
|Is Amazon really "chic" for fashion?|
|Amazon have sold clothes for years either it's the established high street retailers getting rid of stock like New Look or even Boohoo who have 375 items for sale on Amazon.No competition in my view.The competition is Zalando, ASOS, misguided and a few others online.Boohoo will be bigger than NXT in 5 years|
|Crosa, And all it takes is for Amazon to move into this space and eat that growth away. One false move here and it's a 50% fall or more.|
|Finish level,happy all round.|
|Just the small %age traders seem to be buying/selling at the moment,waiting for more updates no doubt.|
|It amazes me how people still talk about Eps, revenue ,GP etc like it's relevant when a company is growing this fast. You have to look forward a year or two.Last October I predicted £275m revenue for Feb 17 when most in here poopooed it and said £265 was the top end estimate. Fast Forward to Jan and £285m is expected and I think will be beaten £288 is my prediction.Fast forward to Feb 18 and £500m is achievable now that they have PLT and NG to assimilate. Even if EBITDA is reduced to say 10% then 50m EBITDa is possible with profit of £44m and an EPS of 4.0p. That is up from 3p this Feb and 2.2p last year so a EPS growth of 50% then 33%. I thought it would take 2 years to get to a £2 share price from last October. Now I then its achievable next Jan after the next stonking Xmas update.|
|Its worth noting, if food is an example, the best Web Portals are owned by companies you cannot buy shares in (Iceland)
I've looked all over the place for a really good QUOTED UK web retailer that had a market cap that in any way was realistic - there are none (mysale perhaps).
I think this is because we're in a MONOPOLISTIC situation - if you are a small investor (not a multi-millionaire) you're being deliberately corralled into investing in just a couple of relatively old tat companies - we're pouring millions into these companies with little on no real expectancy of them ever being worth anywhere near these market caps.|
|Amazon to launch own fashion line according to the Telegraph. More competition but also a potential buyer of BOO? http://www.telegraph.co.uk/business/2017/02/15/amazon-brink-launching-uk-fashion-label/|