Boohoo Share Discussion Threads

[christh] 31/5/2019 08:40

High PE is demonstrated in high growth stocks such as Fevertree,Boohoo,KWS,PRSM and many AIM stocks.

Always remember quality stocks with high potential, strong growth ,good strategy, good and strong management, they are the achievers.

Boohoo is one of the future ASOS and maybe beyond that as it has become a brand.
I have bought the shares for the long term because of the above.

I will always look back and see that I made the best choice.
I do ignore posts that are wasting my time and try to distort reality.

[christh] 31/5/2019 08:31

Extrader,
PE is a sign of quality.
Quality stocks have a high PE.

Quality does not come cheap!

[guruofcanada] 30/5/2019 17:00

A big seller dumped 297,000 shares the other day. I suspect they will continue to dump more over the next few weeks on any price rises if it’s who I suspect it is.

[guruofcanada] 30/5/2019 16:28

Indeed that’s true, but comparable to its peers it’s still vastly overpriced. Take a look at the simplywall.st chart for an easy picture of it.

[extrader] 30/5/2019 16:12

Hi Guruofcanada,

Not having a pop, but P/E ratio is often a function of perception re future prospects...and BOO's are arguably better than ASC's.

That's what Mr Market seems to think, anyway.

ATB

[guruofcanada] 30/5/2019 12:34

Didn’t you say before that ASOS was not the same as boohoo? Or was that villarich? But ASOS has an share price value of 50 times earnings and this share has over 70 times earnings

[christh] 30/5/2019 11:46

wow!ASOS at 2.52% higher today...

BOOHOO to follow higher as sector is up today...

[guruofcanada] 30/5/2019 10:06

GROWTH being the key word christh! Growth! That means “bigger” than what they are today! Maybe in 4 years they will be worth 280p......but today the share is OVERVALUED!

[christh] 30/5/2019 09:42

Balerboy 30 May '19 - 09:05 - 15119 of 15120
Shame when people can only recall old news........

facts never change, the company is thriving,profits/earnings are growing.
Where do you see the old news?

It's probably the shorters mentality that does not equate to the real world.
The company is expected to announce an estimated 38% growth from last quarter or 6 months of 2019 as Peel Hunt has noted.
But in my opinion BOOHOO will exceed that because of new product launching, strong demand for the summer season etc.

You make your mind, your own decision.

I expect a good rise on the 12 June and raise of estimates and targets.
Remember it was at 280p and dropped but is rising again.
The 325p is easily achievable because the growth figures speak for themselves.

[christh] 30/5/2019 09:32

ASOS is doing well, at 1.36% up, BOOHOO will follow soon, hopefully hit 234p

All the news are good for BOOHOO, looking forward to the trading statement
which will silence ignorant posters

[balerboy] 30/5/2019 09:05

Shame when people can only recall old news........

[guruofcanada] 30/5/2019 09:03

Hahaha yes I know bull!

While you mention it.....christh can you explain today’s value?

[bulltradept] 30/5/2019 08:59

GoC As long as you enjoy yourself... but you'll find he won't answer difficult questions, enjoy anyway.

[guruofcanada] 30/5/2019 08:52

Didn’t peel hunt just DOWNGRADE last week?

[christh] 30/5/2019 08:48

Peel Hunt upgrades online retailer boohoo
By Andrew Hore -
07/05/2019

Peel Hunt has upgraded its forecasts for online fashion retailer boohoo (LON: BOO) in its latest note thanks to the continued growth of the boohoo brand.

Pre-tax profit is forecast to increase from £76.3m to £93.9m – a 6% upgrade – this year, on revenues of £1.19bn, and the cash pile could be in excess of £220m by the end of February 2020. That is after spending £60m on warehouses and other capital investment, which is more than any previous year.

Changes in the accounting for leases is responsible for a significant chunk of that profit upgrade, but that does not affect the cash position.

This forecast assumes 38% growth in revenues in 2019-20, which is well above the guidance of 25%-30%. The boohoo brand, which is more mature, is expected to grow revenues by 19%, up from 15% previously.

Gross margins have held up well at boohoo and the automation of the Burnley warehouse will help efficiency.

Other brands
The other online retail brands are motoring ahead, as well. PrettyLittleThing is still a major growth brand and it will start to benefit from its new warehouse facilities. This brand’s revenues are set to grow by 54%.

The Nasty Gal growth rate estimate is upgraded from 75% to 90%. This year’s forecast also includes a £10m revenues contribution from recent acquisition Miss Pap.

Prospects
The group has enough warehouse capacity to cope with £3bn annual revenues. That is likely to be achieved by 2023-24. That is not far away so capital investment will need to remain high.

Warehousing outside the UK is the next step. The US is an obvious candidate and boohoo needs to learn from the mistakes of ASOS.

Peel Hunt’s forecasts are ahead of consensus, but they have tended to be in recent times. They have also tended to be reasonably accurate. At 243.7p a share, boohoo is still trading on 45 times prospective 2019-20 earnings, falling to 37 next year.

[guruofcanada] 30/5/2019 08:40

You conveniently left out

Morgan Stanley 195
Barclays 190

[guruofcanada] 30/5/2019 08:38

It’s just a bit of light entertainment bull! I can see him desperately trying to find old snippets after receiving his new delivery of pride hotpants. Poor guy is desperate to prove himself. Besides I actually would listen to all views, even the village idiot, you can always filter out what you want to take onboard yourself.
What christh fails to understand is that value is proportionate to earnings of the company. It will take time to grow this company, and that will be tough in the current market. Also, especially when the likes of other online retailers like the Indian giant are preparing to take on boo!

[guruofcanada] 30/5/2019 08:28

Share price by REAL brokers set at 190

[christh] 30/5/2019 08:27

The facts speak for themselves.
Boohoo is a strong growth company with high potential.
The ceo has been promised £50 million bonus to treble the share price and is at it
working very hard to achieve that.

On 12 June the trading statement will show once more how exceedingly grew more
like always by 35%-48% and likely more than that.

DO NOT FOLLOW STUPID POSTS WHO BEAR NO RESEMBLANCE TO THE COMPANY PERFORMANCE.
THE SHARE PRICE HAS BEEN SET A TARGET BETWEEN 280p-325p BY BROKERS

07 May 2019 .....Peel Hunt ....Buy........325.00........Reiterates
30 Apr 2019.......Citigroup......Neutral....250.00........Retains
29 Apr 2019.......Numis.........Buy.........290.00........Reiterates
26 Apr 2019.......HSBC.........Buy.........280.00........Reiterates

[guruofcanada] 30/5/2019 08:15

Anyone would think you are just pumping your own share!

[guruofcanada] 30/5/2019 08:13

Why post old news? I’m sure the new ceo will indeed get there in 5years. How can you expect it to get there in just a few weeks? The PE is already way over valued.

[christh] 30/5/2019 08:08

Stock markets are struggling on boohoo's results day, but the retailer is defying the gloom.
Thursday 2 May 2019 11:39am

Fast fashion is back in vogue on the London market, with well-received results from Boohoo adding to euphoria over a spectacular 2019 for shares in AIM-listed rival ASOS (LSE:ASC).

Their recent turnaround follows an uncertain couple of years for both stocks, with margin worries and increased competition raising question marks over their lofty valuations.

For Manchester-based Boohoo (LSE:BOO), which trades as Boohoo.com, PrettyLittleThing and NastyGal, last week's annual results addressed some of those fears after a strong end to its financial year boosted optimism that it can achieve a 10 per cent operating margin going forward.

Shares climbed 4 per cent to take this year's improvement to 35 per cent, although the stock is still short of the 266p peak of just under two years ago. Analysts at Peel Hunt think that Boohoo - under its new CEO, the former Primark boss John Lyttle - can fill that gap and go on to reach 300p.

That's despite Boohoo's annual sales of £856.9 million being dwarfed by its current £2.5 billion market capitalisation. Until recently it had been neck-and-neck with ASOS, but its rival is now worth £3.3 billion after soaring in recent weeks despite a disappointing second quarter update.

The momentum at Boohoo reflects the exceptional performance of PrettyLittleThing, which doubled full-year revenues to £374.4 million after growing its number of active customers by 70 per cent to five million. The trend-setting brand originated as an accessories-only website when it was founded in 2012, before Boohoo paid £3.3 million for 66 per cent of the business in January 2017.

Its offer is clearly resonating with consumers, with high profile celebrity associations driving traffic and international expansion, particularly in the United States. PrettyLittleThing sales now appear to be on course to overtake the core Boohoo.com brand, which grew revenues by a more modest 16 per cent to £434.6 million from a base of seven million active customers.

Across the group, revenues for the year to February 28 were up 48 per cent and stronger than the company's 43 per cent-45 per cent guidance at the time of the post-Christmas trading update. Adjusted profits rose 49 per cent to £76.3 million, which was about 8 per cent stronger than City forecasts.

Source: TradingView Past performance is not a guide to future performance

The strong end to the financial year means guidance for 2020 is now towards the top end of current forecasts, with anticipated revenues growth of between 25 per cent and 30 per cent within reach if the recent performance continues. The company thinks an adjusted operating margin of around 10 per cent is achievable over the medium term, having reached 9.9 per cent last year.

Analysts will be relieved at Boohoo's margin outlook and the company's confidence to sell at full prices at a time when the clothing market is so competitive. The gross margin for last year increased to 54.7 per cent from 52.8 per cent, with PrettyLittleThing achieving a figure of 56.6 per cent.

The company's focus on key international markets has also been successful, producing growth of 64 per cent and increasing international revenues to 43 per cent of the group total.

Substantial investments have been completed to secure warehouse capacity for growth and improve the future efficiency of its Burnley warehouse with automation. Cash flow generation has been strong, with free cash flow up 118 per cent to £65.1 million.

Lyttle, who spent eight years as Primark's chief operating officer, has been at the helm since mid-March. He said investment in brands and infrastructure meant the group was "well-positioned to disrupt, gain market share and capitalise on what is a truly global opportunity."


www.cityam.com/276762/heres-why-boohoo-shares-chased-sharply-higher

[guruofcanada] 30/5/2019 08:06

These markets are once again suggesting a self induced recession.

Christh are you shopping for your rainbow hot pants?