That article like most takes the view that all Boohoo do is offer fast fashion but that is not entirely true anymore with their acquired brands. Sure the main cash cows are Boohoo the brand and PLT for now, but thereâs more there and theyâre going wider.
Anyway, Boohoo might do better by renaming the parent company.
Launch of the US distribution centre will help them a lot as it will reduce shipping time from 10-14 days to 1-2 days and of course the cost of shipping. The PLT secondary marketplace could become interesting although Iâm struggling to see why itâs taking them so long to launch.
At its current valuation Boohoo could become a acquisition target.
Would the Kamani family sell? I donât think they would unless they got into real trouble. They only have 1M net cash so who knows.
If enough shareholders want the exit then theyâd have a hard time turning it down or face possible legal action.
Boohoo arranged an increase to their revolving credit facility in March to ÂŁ325m. They are not short of capital.
At these prices youâd think someone within the senior Boohoo team would buy shares.
Saf they wonât buy any shares until they have an idea where the company is headed. The fact they arenât buying at these prices tells me they arenât confident in the business. Also them taking out ÂŁ300+ million is not helpful. They burnt through their entire cash pile (ÂŁ250+ million) JUST THIS YEAR and WEâRE NOT EVEN 6 months INTO 2022. If you think they will be able to use all that borrowed capital to withstand another year youâre nuts. If I knew about this in hindsight I wouldnât have bought in until the stock dropped below 50p unfortunately Iâm stuck holding the bag with a ÂŁ1.25 average. This year is going to be really rough on BOO and the balance sheet will look very ugly this time next year if this inflation isnât under control. As far as Iâm concerned my money will be going into other stocks until BOO gets near the 50p range.
It will go back down to 70p next week donât you worry
How low can it go? Could it drop to say 35p a share? What would drive the price there? Can I help it along in anyway?
Genuinely curious. I have some extra bandwidth to learn something new 
Right now Iâm worried they may need to sell their plant in the US to recoup some capital. Iâm worried to that level with BOO.
They have ÂŁ325 million in revolving credit finance available to them. Thatâs up from ÂŁ100 million in March 2022. Why wouldnât they use that?
They will but Iâm saying that it wouldnât last them for a full year that amount of money. They spent nearly that much just to maintain operations for the past 5 months.
Ah, I see. I thought you said youâre holding? Why not sell and cut your losses?
I think over the long term they will be fine thats why Iâm not selling. My average is ÂŁ1.25.
they are such a dodgy company!
It is their culture.
âBoohooâ âMissguidedâ Never judge company by its name but blimey how do the come up with them?
It was either BooHoo told Frasers Group wasnât it.
Probably a few going to be bidding for it. Can see Asos, boohoo and fraser group bidding they all like a company that has gone bankrupt.