Boohoo Share Discussion Threads

[yopf] 03/12/2018 13:07

"what Telbap is saying is that the whole retail industry is going to be impacted by the general shift in retailing. As the traditional bricks and mortar retailers fail then this will temporarily bring down the entire sector."

What absolute tosh! Talk about peddling a one sided view (if I remember rightly you were recently cheering BOO as it got to 200p).

You're either short or looking for a lower entry, otherwise, why are you expended so much energy on this board?

[villarich] 03/12/2018 12:45

"I've done my research and very happy to be holding/adding of BOO:)"Good for you. That doesn't mean anyone providing a different view isn't "peddling rubbish"

[villarich] 03/12/2018 12:44

Yopf - what Telbap is saying is that the whole retail industry is going to be impacted by the general shift in retailing. As the traditional bricks and mortar retailers fail then this will temporarily bring down the entire sector. But his main point is around Margins. Yes 18 - 30s will buy their fast-fashion from BOO and Asos but at what price and on what margin? This is the big issue. As the wider economy slides over the next 18 months or so, money will get tighter and as a result all retailers will start discounting, meaning less profit and reduced shareholder value. I firmly believe BOO is the future of fashion retail, but you can't ignore the wider retail or macro environment, and both look bleak.

[yopf] 03/12/2018 12:41

I've done my research and very happy to be holding/adding of BOO:)

[villarich] 03/12/2018 12:38

"As an 30 year veteran of the industry you're just the kind of person's judgement I'll ignore" Too right Yopf. Who wants to listen to experts eh??

[villarich] 03/12/2018 12:37

Which is exactly what you are doing!!!!! You have started with the opinion that the share will only go up and then you go looking for the info to support it. Which is the wrong way round!

[yopf] 03/12/2018 12:34

So telbap...where are the 18-30's going to buy their fashion?

You're right not Debenhams, HoF or John Lewis. It's fast online fashion houses like Boo and Asos...Primark are doing very well BTW;)

As an 30 year veteran of the industry you're just the kind of person's judgement I'll ignore, as your peers (and I have to include you) obviously failed to see the online boom or refused, arrogantly, to accept that your big brands were too big to fail.

[yopf] 03/12/2018 12:28

Talk about making the narrative fit your own agenda;)

[telbap] 03/12/2018 12:26

The entire garment supply market is in turmoil, Villarich I agree with your neutral / negative stance here. I have worked this industry for 30 years. Never have I seen such a bleak forward vision of where we will be next year.Currently, NO ONE is buying, 80% of the high street have DC's bulging with stock, trend direction is flip flopping all over the place. I sincerely believe BOOHOO and ASOS are walking a very very high and thin wire. Maybe BOO has a little better backstop as they / were at last statement, sitting on a large cash position. January will likely see Debenhams going into liquidation/receivership another buyout possibility for Mike Ashley (probably already looking at it) Also very likely other well know high street names will be going that route, doing pre pack deals to off their leases and bank debt. It's getting close to the tipping point, at point at which the over whelming pressure of debt and leases, almost non existent head room in cash flow, and rent reviews, come together and make it almost impossible to carry on.For me John Lewis having a break even year was that point. Their reasoning was they had to price match all through the year to maintain there ethos of "never knowingly undersold" so many retailers were heavy discounting, it wiped their profits out completely.If someone would have said this to us 5 years ago we would have laughed at them.Shows you how bad it is out there.

[yopf] 03/12/2018 10:31

So, what's your point?

[villarich] 03/12/2018 10:25

I think if you go back to 2015 you'll see it's in an even bigger up trend. This just emphasises my original point though - your searching for information that fits with your one sided view of the share. It's called confirmation bias and is very dangerous.

[yopf] 03/12/2018 10:20

I think you'll find that if you delve back to mid September you'll see BOO's in an uptrend....go back still further (4th April and you'll see BOO's in a strong uptrend:)

[villarich] 03/12/2018 10:17

I've read the charts Yopf. The last two months does not make for great reading. How far back are you going to get your " strong rising channel and bullish wedge formation" - Note the quotations marks as it is a direct quote of yours.

Since the start of October, the daily chart is in a down trend making a series or lower highs and lows.

[yopf] 02/12/2018 17:09

Read the charts Villa
p.s you don't need quotation marks as you're not quoting me as I never said that;)

[villarich] 02/12/2018 14:20

You're one of the biggest culprits for peddling rubbish! Or by rubbish do you mean "anything that is contrary to your one sided view of the share?"

[yopf] 02/12/2018 11:12

BTW...same pattern after a rise. Lots of unknown personas arrive peddling rubbish;)

[yopf] 02/12/2018 11:05

Just bringing this up as the board's has been (deliberately) flooded with rubbish designed to confuse and distract.

Just don't be short next week;-0)

Boo is currently close to support (187) on the daily chart within a strong rising channel and bullish wedge formation. Resistance is 235.

RSI is at support in a rising channel (now oversold) and stochastics are oversold.
Boo is also currently at the 200 day moving average.

One won't see any stronger bullish technical signs. Add that to the news and sales, you've got a mega opportunity.

[mauricemonkey] 01/12/2018 21:33

When I was a kid my old man said “better to stay quiet and have people think you’re an idiot than to open your mouth and prove it”....

[christh] 01/12/2018 21:24

BoA Merrill Lynch gives Boohoo shares a boost as it initiates coverage with a ‘buy’ rating, 280p price target


UBS's analysts noted that Boohoo’s group revenue has grown four-fold in the past four years to £580mln for full-year 2018, and they expect it to triple again in the next five years
Boohoo model
They said they see scope for boohoo to become an acquirer of small online brands, which would present incremental upside to their earnings and valuation

BofA Merrill Lynch has given a boost to shares in Boohoo Group PLC (LON:BOO), initiating coverage of the online fashion retailer with a ‘buy’ rating and 280p price target.

In late morning trading, the AIM-listed firm’s stock was 2.1% higher at 222p.

In a note to clients, the US bank’s analysts said: “boohoo offers exposure to three important structural trends in apparel:
(1) shift to online;
(2) consumer demand for value; and
(3) a move from fast to faster fashion, owing notably to the strong sourcing background of its founders.”

They noted that Boohoo’s group revenue has grown four-fold in the past four years to £580mln for full-year 2018, and they expect the group’s revenue to triple again in the next five years, making it the fastest-growing company in their coverage.

The analysts pointed out that boohoo shares trade on 27 times 2019 estimated EV/EBIT, a c.20% discount to online peers, which they think “is unjustified considering its superior business model and growth profile”.

In the medium term, they said they see scope for boohoo to become an acquirer of small online brands, which would present incremental upside to their earnings and valuation.

READ: Boohoo raises revenue guidance after a storming first half
www.proactiveinvestors.co.uk/companies/news/205737/boohoo-raises-revenue-guidance-after-a-storming-first-half-205737.html

[christh] 01/12/2018 21:22

5 Top AIM Stocks Held by Fund Managers
Fevertree, ASOS and boohoo.com have been just three AIM success stories in recent years. Here are the companies that top UK smaller company fund managers like right now
David Brenchley

Fevertree tonic mixer, gin, top AIM stocks, fund managers

While they come with plenty of risk, smaller companies can offer investors better growth opportunities than their larger counterparts.

The better performing funds of 2017 had growth mandates, meaning the UK funds that did best were looking for opportunities in indices with smaller constituents than the blue-chip FTSE 100.

The Alternative Investment Market (AIM) was launched in 1995, as a place for smaller UK companies to float on. It offers investors willing to take on an extra level of risk in return for the potential of greater returns some cracking companies.

The likes of ASOS (ASC), boohoo.com (BOO) and FeverTree (FEVR) all have market capitalisations of over £2 billion – more than some FTSE 250 firms. Despite their high profiles, they are still happily holding onto their AIM listing.

They, and many others, have helped the AIM All-Share outpace the FTSE 100 fivefold and the FTSE 250 by two times over the past three years.

We screened the five funds in the Investment Association UK Smaller Companies sector that are rated Gold or Silver by Morningstar analysts to check out which stocks they are holding using the Morningstar X-Ray Tool.

Fevertree

Unsurprisingly, Fevertree is top of the pops among smaller company funds given its stellar success and accounts for a good amount of three of the five portfolios. Old Mutual UK Smaller Companies, the only Gold-rated fund in our list, has a position of more than 4%.

Old Mutual is the largest institutional holder of the stock, owning almost 10% and second only to Charles Rolls, who founded the company with Tim Warrillow. It floated on the stock market back in November 2014 and has surged 1,770% since to trade at a shade over £25 today.

The firm makes premium carbonated mixers for alcoholic beverages, including tonic water for use with gin – a fast-growing drink for Britons. While the valuation has run away with itself, both revenues and sales have grown consistently by around 70% year-on-year since 2014.

Fevertree said in a trading update 12 days ago that results for full-year 2017, due out in March, will be “comfortably ahead of market expectations”, so expect some further juice in the share price in the short term.

SLI UK Smaller Companies has 3% of its portfolio in Fevertree, while River & Mercantile UK Equity Smaller Companies has 2.5%.

Smart Metering Systems (SMS)

Another “ten-bagger221;, Smart Metering Systems floated in 2011 at 60p per share. It currently trades hands at 740p – growth of 1,133%. The market cap stands at £669 million.

This time, Old Mutual is the largest shareholder, having got in at the initial public offering and Dan Nickols’ fund has recently upped its stake. It currently represents 2.88% of his portfolio, 4.23% of the River & Mercantile fund and 2.29% of the Standard Life offering.

The Glasgow-based company owns and operates gas and electricity meters on behalf of major energy companies like Centrica, E.ON, Gazprom and SSE. Results for the six months to June 30 2017 saw SMS increase revenue by 14% to £36.8 million with a slight improvement in pre-tax profits but decrease in earnings per share of 10%.

First Derivatives (FDP)

Capitalised at just over £1 billion, First Derivatives is a more seasoned listed company. Its share price has doubled since the start of 2017 and is the largest holding in the Standard Life fund at 5% of assets. The Old Mutual offering has a small position.

It’s not widely owned by institutions, with chief executive and founder Brian Conlon still hanging on to around a third of shares. It’s also the second largest holding in the Bronze-rated Slater Growth Fund.

First Derivatives provides software products and consulting services to institutions in the finance, technology and energy sectors. It also supplies technology to enable the Red Bull racing team to analyse data during Formula 1 Grand Prix races.

Its results for the six months to 31 August 2017 showed revenue up 21% and adjusted pre-tax profits up 13%. Chairman Seamus Keating said full-year performance is expected to be ahead of the board’s expectations.
GB Group (GBG)

Cyber security firm GB Group has been a listed company for more than 25 years, but moved to AIM in August 2010. Then trading at 25p, it’s now up to 429p. GB provides identity verification services to prevent fraud to blue-chip names such as carmaker Ford, apparel seller Nike and global banking giant HSBC.

The share price had a wobble late last year, falling 40% in the space five weeks to trade at 210p after the election of Donald Trump as President of the United States in November. It’s bounced back since, though, more than doubling.

GB is highly cash generative with an experienced and incentivised management team, according to sellside broker finnCap. It has seen long-term double-digit organic growth and has recurring revenue streams.

A forecast yield of 1% for 2018 is decent for a growing company, especially considering the dividend is growing at 10%-plus every year and is well covered by earnings.

Octopus Investments, a provider of venture capital trusts, is the largest shareholder at over 10% with Standard Life Aberdeen and Canaccord Genuity next. The SLI fund has a 2.5% position in GB and Artemis UK Smaller Companies has 1.3%.

Blue Prism (PRSM)

Blue Prism is another success story for AIM’s tech sector. The company provides robotics software that enables large companies to automate many mundane back-office tasks, freeing their employees to carry out more important activities.

The firm debuted on AIM in March 2016 at 78p. In almost two years, its share price has shot up over 1,500% to £13 today.

But with that stellar share price growth comes questions over valuations, and some fund managers have recently taken profits on their holdings in Blue Prism. One of those is James Baker, manager of Chelverton UK Growth.

Baker told Morningstar recently that he exited his position in mid-2017 at around 800p – “much too early” despite having made eight times his money. His reasoning, though, was that Blue Prism’s “market capitalisation to sales ratio was becoming unsustainable fast”.

Although some board members have been taking profits in recent months, management still own significant portions of the stock. Old Mutual owns a fifth of the company and Nickols’ fund has 2.58% of its assets invested.

[villarich] 01/12/2018 18:31

Good work on the research dsct. A great read.

[villarich] 01/12/2018 18:27

Ha he calls you illiterate Sogo, then posts that drivel.

[christh] 01/12/2018 15:57

sogoesit, sad character.
your behaviour has been noted.A silly illiterate, gutter character creature.
A hyenna or a worm?

Not worthy of taken notice.