Boohoo Share Discussion Threads

[guruofcanada] 10/6/2019 09:21

Now, focus on Boo. Tomorrow is likely to see a reduced growth rate from the boohoo brand and a higher growth from PLT. The 20% payout to kamani should be alarming enough for shareholders as it’s the shareholders paying to grow a brand they don’t fully own. The growth of the brand will also lead to a hefty price tag valuation when they buy the remaining 34%.

[guruofcanada] 10/6/2019 07:57

Boo need another slap on the wrist with the repeated SALEs. Naughty naughty!

[villarich] 08/6/2019 13:47

SIPP dealing

[villarich] 08/6/2019 13:45

For ISA and SIPPING dealing I use AJ Bell. For day trading and more complex stuff I use Interactive Brokers. The letter is expensive if you don't use it for complex stuff or have smaller accounts. You need 250k at least to get value out of IB in my opinion

[guruofcanada] 07/6/2019 10:55

Good old faithful village idiot! Love it! I have never made a single loss on boo, so I guess I know more than you do Walter!
I suspect distribution centre problems - hence the hiring of former primark guy. I also expect PLT growth and the bigger slice of the pie going to kamani’s rather than share holders.
What do you expect Walter?

[christh] 07/6/2019 10:29

There's a mad dog barking in here of sour grapes.
Possibly is been stuffed, with many short positions.

Looking forward to the upbeat trading statement on the 12 June(next Wednesday)

[guruofcanada] 07/6/2019 09:43

It seems I’m not the only one to think this share is overpriced given the issues with PLT and an obvious con to shareholders. I think results will show that PLT is surging at the expense of shareholders while the boohoo brand is falling behind.


...

I’m less keen on the ownership structure of Boohoo’s star brand PrettyLittleThing. Sales at this young fashion brand rose by 107% to £374m last year. This meteoric growth means that PrettyLittleThing now rivals core Brand boohoo, where sales rose by just 16% to £435m.

I don’t know why Boohoo is growing so slowly compared to PrettyLittleThing.

But I do know that PrettyLittleThing was founded by Umar and Adam Kamani, the sons of Boohoo co-founder Mahmud Kamani. When Boohoo acquired PrettyLittleThing in 2017, it only took a 66% stake. The remaining 34% of PrettyLittleThing is held by other investors, presumably the original founders.

Why this matters
Boohoo Group’s after-tax profit for 2018/19 was £47.4m. But BOO shareholders are only entitled to £37.7m of this income. The remaining £9.7m goes to outside shareholders in Boohoo’s subsidiaries. I suspect that most of this relates to PrettyLittleThing.

What this means is that more than 20% of Boohoo’s profits went to outside investors last year. Earnings for Boohoo shareholders only rose by 19% to 3.22p per share. With the shares trading above 230p, that prices the stock at roughly 70 times earnings.

This valuation is too high for me, especially as shareholders aren’t getting the full benefit of strong growth at PrettyLittleThing. I’d avoid the shares at this level.

[guruofcanada] 05/6/2019 15:14

Amazingly they have a summer fashion thing on a regular basis! Like, every summer! If you think the new CEO can perform miracles in just 12 weeks you are delusional! The recruitment of his former colleague is a possible long term bet, but certainly not one that will change a single thing by next week! If there is even the slightest whiff that the new facility is having startup issues the share will get hammered....and that could be a reason to hire the guy in the first place!

[christh] 05/6/2019 15:00

Keep the faith, next Wednesday they will be selling them like hot cakes
The results will rocket them to 250p-280p

Their new collection are so exciting will top the fashion world

[adealsiddiq110] 05/6/2019 14:34

The MMs are having a blast prior to the results

[guruofcanada] 05/6/2019 12:27

And the whole market is awake today after Trump downplayed many of the market fears, plus the FED willingness to drop rates if needed. As always it’s a “trade the news” day

[guruofcanada] 05/6/2019 12:25

Bulltrade, I actually like the company....I just don’t like the numpties who post ridiculous share price predictions without any meaningful change to the operation.

This article shares my exact opinion;

hxxps://investomania.co.uk/2019/06/is-the-boohoo-group-plc-share-price-overvalued-after-its-40-rise/

[bulltradept] 05/6/2019 12:05

So what's your thought's on today's action then GoC?

Given the trading update is next week and the price isn't off much from its highs, things aren't looking that rosy for bears I might suggest.

[christh] 05/6/2019 10:33

All systems go
--------------------------------
Exclusive: Boohoo appoints Primark supply chain director

4 June 2019 By Isabella Fish

Boohoo Group has appointed former Primark supply chain director, David James, into the same role at the business.

[guruofcanada] 05/6/2019 09:20

Who’s afraid of the big bad wolf? Surely not thee 3 little piggies from Peshawar?

How will John deal with all the plastic on his watch?

[adealsiddiq110] 05/6/2019 09:07

Shorters will be getting burned a week from today ?

[christh] 05/6/2019 09:04

financial calendar

[christh] 05/6/2019 09:02

hot weather at its best with the new season collection

[guruofcanada] 05/6/2019 08:51

100p next week as new CEO cleans out the closet and says he will use all Boo cash pile to assume PLT remaining share - that’s just as credible as christh

[guruofcanada] 05/6/2019 08:48

FED interest rate cut would be good for the retail stores at least. Trump seems very dovish in Pierce Morgan interview, too.

[christh] 05/6/2019 08:47

target price today 238p

ASOS up 3.51% and Boo is following at 1.37%

Boo will catch up soon

250p-280p next week with the trading statement next Wednesday 12 June