Boohoo Share Discussion Threads

[good101] 01/10/2017 00:34

I am a sizable investor in BOO but decided to sell all holdings. The latest huge sale by a management person is never a good sign. It was clearly executed in an unskilled manner. This shows lack of experience or indeed conflict within the BOO management structure. BOO is working in a crowded UK space with Alibaba working with YOOK and JD.COM working with FARFETCH. Add Amazon to the mix. I suspect the BOO management may have to drop margins significantly more just to stand still against such behemoth players. I not convinced that BOO will be able to maintain momentum in the face of such powerful global players that can source direct from China. Alibaba will almost bring in Alipay as well. It is also interesting that after extensive due diligence, neither JD nor Alibaba bought out BOO but instead bought into other players in the UK. For sure JD and Alibaba did extensive due diligence of the UK space and rejected BOO.

[che7win] 30/9/2017 21:01

Tbird, Good post

[tjbird] 30/9/2017 20:47

Share of the Week: Going from great to amazing
By David Brenchley | Fri, 29th September 2017 - 16:32
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Share of the Week: Going from great to amazing
It was described by broker Canaccord Genuity as "one of the most comprehensive capital markets days that we have attended in recent years", and SuperGroup (SGP) clearly impressed analysts and investors invited to a two-day event which outlined the clothing retailer's strategy to take its flagship Superdry brand "from great to amazing".

And analysts in attendance were gushing. "We are absolutely persuaded that near-to mid-term profit forecast risk remains to the upside," says Panmure Gordon's Peter Smedley. "The strength and depth of management... was hugely impressive," added Canaccord's Sanjay Vidyarthi.

Chief executive Euan Sutherland and his team told the crowd that the company would rebrand as Superdry. It's aiming for "strong" yearly sales growth with operating costs to grow more slowly, 0-30 basis points of gross margin uplift per year, "moderate" operating margin expansion and improved cash conversion between 2018 and 2020.

A lot's already been achieved in the last few years. It's invested significantly in infrastructure, systems, processes and product quality; delivered cracking returns; seen 10 consecutive quarters of like-for-like retail sales growth; and paid out dividends totalling £58 million.

Now, it wants to capitalise on what it sees as a huge untapped world market opportunity, despite already being present in 148 countries. It aims to strengthen its already strong global digital brand and continue its "relentless innovation".

"We are more excited today than we have ever been before about the future of Superdry and our ability to create long-term sustainable growth for our investors by delivering on our compelling strategy," added Sutherland.

"Having doubled pre-tax profit FY12-15, we expect another 50% growth FY17-20, with free cash flow as a percentage of sales rising from 1.2% in FY17 to 10.5% by FY20E," says Vidyarthi.



Smedley's slightly ticked up earnings per share (EPS) forecasts for 2018 and 2019 to 94.8p and 111.6p respectively, though he cautions that the cost of growth may prove higher than the market is hoping for. For that reason, he admits his 1,898p target price is "cautiously set".

"However, a continuation of SGP's recent consistency... over the next 6-12 months may well encourage us to take that leap of faith and be more ambitious".

Vidyarthi says any concerns over the Superdry brand and longer-term growth prospects have been allayed, while John Stevenson at Peel Hunt reckons "the shares merit revisiting for those that dismiss SuperGroup as a one-trick pony".

Rating and price targets on the stock are already pretty bullish. Still, "there's significant growth ahead", Stevenson adds. He himself is the most positive, with a price target of £21.10. That said, the share price has found it tough to make any break above £17 stick. And we're nearly there again after an 8% rally this week.

A forward earnings multiple of 16 times is a sector premium, but the shares do trade at a big discount to the online retailers. That valuation is "compelling" according to Vidyarthi, while Smedley says "the CMD is likely to shine a spotlight on that undeserved significant discount".

It remains to be seen whether a first-half trading update on 9 November will be the catalyst needed to lift shares above its resistance level.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

[john09] 30/9/2017 19:48

Hi all BooHoo followers

I wondered what you think of Quiz Clothing which floated recently

[glenkaz] 30/9/2017 19:22

Anyone see today daily mail!! That 🐮 Was put in the uhum uhum hero section!!!! £10mill wtf how's she a hero!!!!! Messed your party on results day!! I'm convinced you'd have had £3 not £2 a vile time to take your money 💰 and she had a bit of mine though honest I was in for a trade only!! But I kinda think you will all get £3 by end of year! Gla! And bye🤡✌️

[thaiger] 30/9/2017 13:10

When someone wanted to get rid of a very large holding he would have to accept price at a discount

[supasapi] 30/9/2017 10:29

Saw the boo hoo man advert at cullercoats metro station for the first time today.....

[khitchen] 29/9/2017 19:42

tickler
this is an AIM stock they can report buys & sells several days late, I think they write the rules to suit themselves

[tickler] 29/9/2017 19:07

Can anyone explain the two large trades showing at the end of the day at £1.97 when the days low was £2.07?

[suetballs] 29/9/2017 15:25

Had a few more - slowly building a decent holding - for me that is.
Suet

[pt725] 29/9/2017 14:38

The potential for this company is enormous.When you build both strong platforms and powerful distribution it enables you to leverage new brands with the future prize being women from 30 upwards by far biggest market.The long term plan has to be build in Europe and Us before UK growth slows which it will.I live in Europe and Boo are invisible whereas Zalando are everywhere, yet I flew from Manchester a little while ago, BOO home town so well known and there were BOO / PLT adverts everywhere, a complete wasted allocation of resources.Both Germany and France are bigger retail markets than UK so BOO must land grab there as soon as possible.

[fuji99] 29/9/2017 14:25

saltaire - It's rather a strange "head" as it is below the shoulders. Can you picture a man or a woman with shoulders above the head ? Maybe some heavy mass has flattened the head ? I rather think the chart has the shape of a camel with three humps. The middle hump was flattened by a heavy load, probably some nomad weighing over 400 pound sitting on it day and night as he has nothing to do in life.

[bamboo2] 29/9/2017 14:22

saltaire, Using Bulkowski's definitions, it's a complex Head and Shoulders, that has already hit the target price.

Price making a bottom now.

[glenkaz] 29/9/2017 14:19

🤡 hey I told no one to buy clln lucky I had reserved some dosh to buy in on drop and sell 🤡👍

[rickyvee] 29/9/2017 14:16

I as hoping for a close of 220p today which would move us out of the downtrend but that does not look likely now and it's a Friday afternoon.

[rickyvee] 29/9/2017 14:13

Hope no one took the clown's advice yesterday and bought CLLN. Ouch.

[saltaire111] 29/9/2017 14:10

Chartists will love the perfect head and shoulders in the boo price chart over the last few months.

If you're into charts, it's a bearish indicator.

Salty

[knowing] 29/9/2017 12:35

Well this is an opportunity, if don't take it, is one where you will kick yourself in a months time.

[fuji99] 29/9/2017 10:27

fred - See BOO Statement: "As disclosed in the trading statement released yesterday, the growth rates of the Group's brands are accelerating the need for more warehouse capacity. Consequently, the Group announced yesterday plans to construct a new automated super-site of c.600,000 sq ft, which is intended to provide boohoo with over GBP2 billion of net sales capacity, in addition to the estimated GBP1 billion net sales being provided by the extended Burnley site. The land acquisition of the new site, together with the construction, is expected to cost c.GBP150 million over three years to FY20."

There vision is BIG. Possible mini Amazon in retail ?

[stokiematt] 29/9/2017 10:25

@flyposter - you're probably right.

Although, thinking back to my student days, the youths fell into the same 2 categories I've mentioned before - Label wearers and slogan wearers.

There must be a market out there though, if not UK but overseas.

[fredfishcake] 29/9/2017 10:15

One point that does interest me is why do they need the huge warehousing capacity? They constantly make a virtue of being able to develop new lines in a very short time with the test and repeat model, such that they won't get landed with tons of unsold stock in an unpopular line. The implication being that it comes in one door from the supplier and almost straight out another to the punter. I appreciate you'd need a bit of space and time between the two doors, but.....

Either they're being a little misleading, or the volumes we're talking about are astronomical. I know which one I'm hoping for!

[monnow] 29/9/2017 10:10

Fuji, cycle : the podcast reminds me why I invested here in the 1st place, and still holds true.They are such an ambitious and dynamic management whose real enthusiasm comes across , contrary to how the media would like to portray Carol Kaines recent sale. I agree that institutions want in, and as we know they are price makers we can only be price takers.I suspect very strongly this drop was engineered and worked very well from their perspective, and probably overshot on the downside. The director buy just steadied the ship.

[glenkaz] 29/9/2017 10:10

Soz not deramping honest but would I buy clothes with the name boohoo! No it's a girlie name! Imagine in pub! Hey mate like your shirt! Where did ya get it? I might as well say dorethy Perkins! Lol! Anyway best of luck guys 🤡✌A039;

[trt] 29/9/2017 10:07

Chart still indicating a drop below the £2 level