Boohoo Share Discussion Threads

[au24] 28/6/2017 13:04

It's only to be expected,the slight fallback,its called consolidation,it happens with most stocks which leap ahead then fall back slightly before the next surge skywards:)

[fluid36] 28/6/2017 10:12

Come back in September, enjoy your summer, no good for me - Winter here in Australia (allows me to trade when I get home from work)

[sogoesit] 28/6/2017 09:44

It's the FTSE 250 qruz.
Retail sector is also weak on high street numbers and surveys. Usually hits markets indiscriminately and especially "high P/E" stocks.
Don't forget "sell in may" and go away for the summer as well!

[superhoop2] 28/6/2017 09:23

It's all go in Burnley ...

[qruz] 28/6/2017 08:58

Anyone else starting to worry about the AIM 100 market in general?

Everything seems to be trading sideways or going down in the past month or so..

Few to mention - BOO, FEVR, PRSM, BUR

[villarich] 28/6/2017 08:12

Apad - an obsession is fine as long as it's profitable ;-)

[sogoesit] 28/6/2017 07:51

Indeed, tickler.
Some other candidates here:

[panic investor] 28/6/2017 07:48

Would fit nicely

[tickler] 28/6/2017 07:39

Misguided is my guess for the next Acquisition.

[sogoesit] 28/6/2017 07:34

Apad,
They may not "need" to buy a brand since, as you say, they can create them themselves.
However, commercially, it may be more value-enhancing, more rapid and less risky to buy an existing or newly created brand. In this way, they arbitrage their core skills to a market-tested brand. Of course, all depends on the price they pay, or that is extracted from them, for that two-sided arbitrage. Nasty Gal is the case at point.

It is quite likely that, in the start-up fashion world, there will be a fair amount of low-hanging fruit that lack these FMFG and commercial skills imv.

[apad] 27/6/2017 18:55

V,
Bought both over twenty times since 2015!
Obsession?
apad

[villarich] 27/6/2017 18:41

Apad - BOO and FEVR are my two largest holdings too. BOO since early 30s and late to the party on FEVR at a tenner a pop.Both have huge brand awareness and a niche in their respective markets. They're both moving towards building economic moats which are more important that PE ratios in determining market cap.

[apad] 27/6/2017 17:52

Just so, So....
In my opinion this is a bet on a management that knows their trade from soup to nuts, not on a shop run buy managers.
As I posted earlier (maybe on the VLG board) this CEO partnership can create brands targeted at a consumer group - they don't need to buy brands.

Now my largest holding, together with FEVR - a couple of dray horses.
I'm not quite sure how I got here!

apad

[sogoesit] 27/6/2017 17:42

I agree apad.
I think they have determined that their key strategic skill is what we discussed a while back, namely, FMFG or Fast Moving Fashion Goods.
Once this skill-set is mastered it can be applied to any apparel brand.
(I would argue that that was how Amazon started).

However, it will be interesting to see how close they stay to a homogeneous customer facing perception. I.e. Do they stick with the 16-24 demographic and segment that, ad-infinitum, or do they move outside this "market"?

[apad] 27/6/2017 16:30

Sog...
I think we are underestimating the brand identity policy that BOO are executing.
All of the 3 brands are standalone.
It's not like going into a shop and choosing a brand.
It's like going into a brand.
apad

[dl6789] 27/6/2017 16:08

This is just me being lazy again - but do you know if they have any plans to take on big name brands? For example, Asos sell the likes of Ralph Lauren, Nike, Adidas etc.

[dl6789] 27/6/2017 16:03

Sogoesit - thanks for that! Apologies, I should have been paying more attention.

It certainly sounds like they have big plans. GLA

[au24] 27/6/2017 16:00

NO, not with golden hen and lots of eggs:)

[sogoesit] 27/6/2017 15:51

dl6789:
This is the part of the announcement. I read from this that financing the new warehouse will be from "cash generation".

"To enable the Group to be able to maintain a strong cash position that will enable it to take advantage of investment opportunities as they arise, approximately GBP50 million will be raised through the Placing of New Ordinary Shares and the Group's cash generation will fund the Group's capital expenditure requirements."

and

"The land acquisition of the new site, together with the construction, is expected to cost c.£150 million over three years to FY20."

Cash on balance sheet at end Feb 2017 was £70 million.
Last year they added £12 million cash. If they double that they will have about £90 million this financial year cash. They have the capacity to build the warehouse through "cash generation" as they state.

Furthermore, they have stated that they are executing a "multi-brand" strategy.
They have 3 brands now. Are they proposing to stop now?

[dl6789] 27/6/2017 15:07

Aren't they using the money raised to pay for their new warehouse? Which in itself is a pretty big vote of confidence.

[au24] 27/6/2017 14:55

PE does not apply to BOO type of stock. Look at ASOS history.

[sogoesit] 27/6/2017 13:51

Problem is, if you're thinking of selling, it's dangerous to be out of the stock.
We don't know when, and on what, they will spend the £50 million recently raised.

[khitchen] 27/6/2017 13:22

is there another GAP in the books that we have`nt spotted

[stewar06] 27/6/2017 12:47

It's dropping, and still way way overvalued even at these levels and i mean way over valued a PE that only a week ago was 118

[goku100] 27/6/2017 12:14

SP just consolidating? It's been going around the 232-238 range last week or so. Or is this still profit taking from a few weeks ago?