Boohoo (BOO) 👕 - Share Chat

Sold my Boohoo shares @ 3.00£, made 30% since I bought them. Now I’m trying to get back in and got 5 attempts rejected by FT.

I have recently installed a competitive app so I tried buying a single share there and the order went through straight away.

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Boohoo was quite a popular share on FT? Did anyone stay invested? At what price will you buy back?

Since it is an online retailer, why is it still falling?

  1. It was so much overpriced?
  2. People are not going out so they don’t need clothing?
  3. Supply routes are impacted, because the borders are closed?

:thinking:

Guessing because fashion is discretionary spending, which I suspect people are dialling back on in the current climate, plus when you’re stuck at home may as well wear your onesies.

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Its audience is the low end of the market, people whose jobs are under particular strain as many can’t work from home.

Got one share for free thanks to FT and sold after listening and reading about many controversies on their production line being rather unethical to come out with these competitive prices and basically 0 care for the environment.

Boohoo eyes deal opportunities as sales and profits jump

https://www.ft.com/content/ad867e4a-af48-499a-92ee-ee38c3483258

Boohoo is eyeing opportunities to acquire brands that have fallen victim to the coronavirus downturn, as its own profit and sales continue to grow.

“The priority over the past few weeks has been the safety of our employees and team,” said finance director Neil Catto. “But definitely, we have got the ability as we go forward to look at opportunities that may arise and acquire brands that may need to be helped through to the other side of the crisis.”

Last year, Boohoo acquired the Coast and Karen Millen brands — though not their stores — out of administration and has since integrated them with its own supply chain. The downturn across much of the fashion sector is expected to result in a spate of business failures.

Earlier this month, Oasis and Urban Warehouse, which were once part of the Coast and Karen Millen stable, went into administration. Cath Kidston followed on Monday, while Laura Ashley was an earlier casualty.

Boohoo, which also owns PrettyLittleThing and Nasty Gal, had net cash of £241m at the end of February. Rival Asos recently raised more than £200m in an equity issue — showing that well-positioned retailers can still access capital markets.

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Share price has rocketed up this morning!

Bad luck short sellers :slight_smile:

Hey, I bought some shares of Boohoo because my hypothesis was that the company that executed well and whose brands were loved by their customers. So I believed they would rebound to a strong position when the Covid crisis was over.

What I’m trying to understand is why it has had sudden jump in its stock price over the past 7 days.

Does anyone know if any knew information came to light

See also ASOS - Up 82% in 7 days.


( Still down a third from February )

TL;DR: A worker leaked that Boohoo had a cool 230% growth in processed orders.

Boohoo’s stock price. grew 45% in the past few days.

I don’t want to avail of the overused word “unprecedented”, but it’s quite the rally!

First of all, equities have been on their way up in the past few days. The S&P 500 gained 1.5% today, making this its best week since 1974. (source)

That always helps.

For Boohoo specifically, e-commerce is booming right now.

Anecdotally, I hear from friends selling online that their sales are way up. I reckon it’s because people are literally twiddling thumbs at home and there is not that much diversity in entertainment (Tiger King, I know).

There was a bit of news underscoring this on 7 April.

Basically, the Guardian accused Boohoo and ASOS that they don’t enable social distancing and hence putting their workers at risk. One worker shared a data point:


(paywalled source)

So that’s the bit of news you might be looking for.

But as we learnt from Jeff Bezos, these results have been made quarters ago. Boohoo’s business is well-managed - its supply chain is diverse with 40% in the UK, and it invested £32m on automation at one of its two distribution centres.

For its recently completed financial year, an enterprise value (market cap minus net cash) of about 1.6 x sales is expected by analysts.

Make no mistake, plenty of risk here as is the case with individual shares, but it’s been a well-managed company.

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Fraser’s Group has also seen a nice rebound this week with a 25% (47p) increase from a week ago

Ah yes, at least in their case I know that they did a raise so I understand that: https://www.retailgazette.co.uk/blog/2020/04/asos-raises-247m-in-share-placing-as-sales-drop-by-25/

Ahh now that’s starting to make sense.

Most people believe it’s undervalued now + the spike in demand at their warehouses = increased demand for their stock.

Thank you very much for this, I appreciate it.

oh I didn’t even know that mike Ashley had rebranded. I suppose quite a few clothing retail shops are up.

I recently read that ASOS had a lot of sales reductions. Maybe the others are doing the same? Have to do some research

This is one business that didn’t suffer from Covid! It raised £198m in a share placing earlier in May, to do mergers and acquisitions (good time to do it I think).

Now it spent £324m to take a 66% stake in Pretty Little Thing.

Yesterday the share price was down a short-seller (ShadowFall) accused Boohoo with misrepresenting its free cash flow by £32.2m (65%).

There always seems to be something going on with this stock.

Boohoo already owned 66% of PLT - the acquisition today was for the remaining 34%. Personally, I think it’s a great chess move as one of Shadowfall’s points in their report was that the longer Boohoo holds out, the more expensive the minority stake in PLT gets and due to the same family ownership, is a conflict of interest to shareholder value. Obviously doesn’t take away from Shadowfall’s argument that Boohoo had the option to buy PLT 2 years ago and they only exercised 66% of it.

RNS here:
https://www.investegate.co.uk/boohoo-group-plc--boo-/rns/acquisition-of-remaining-34--minority-stake-in-plt/202005280700041928O/

boohoo (AIM: BOO), a leading online fashion group, is pleased to announce the acquisition of the remaining 34% of shares in prettylittlething.com Limited (“PLT”) from its minority shareholders (Umar Kamani and Paul Papworth) for an initial consideration of £269.8 million, potentially rising to £323.8 million. The acquisition is expected to be significantly earnings enhancing on a fully diluted basis with immediate effect.

That’s right, thanks for correcting it. I got confused, trying to read all the news about my watchlist stocks!