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Boohoo.com - Shares burst to 52 week high

July 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • BOO
  • Price:
  • 57.5p
The shares have been trending higher after the fast fashion website’s Q1 trading update showed further top line growth with better margins being seen. Sales were up 41% in Q1 with the UK up 42%, Rest of Europe up 40% and Rest of World up 37%, with international now accounting for 36% of group sales. Net cash stands at £61m.Gross margin was 56%, down from 57.8% last year due to exchange rate movements, investment in price and customer proposition and the strategic move towards lower prices. In the light of the statement Liberum lifted its pretax profit forecast by £1m to £20.9m for eps of 1.5p. The forecast for next year is £25.6m and 1.8p, respectively.Tipped at 42.5p in September ‘14. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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