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Boohoo.com - Gain since 42.5p tip now 871%

July 2020

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:
  • 413p
Boohoo continues to confound the sceptics, with forecasts standing 10-15% higher than before the pandemic at £119.5m pretax profit/eps of 7.4p. The latest Q1 showed sales up 45% year-on-year versus consensus expectations of 10-20%, with growth in the latter two months of lockdown being up 70%. Growth was strong in all geographies (US in particular, +79% year-on-year) and gross margin also improved 60 bps in this quarter to 55.6%, the highest seen since 2016.  Boohoo has just announced it has spent £5.25m (of the £200m raised in a placing during May to fund M&A) to acquire the Online business of recently administrated brands Oasis and Warehouse. The brands will allow boohoo to continue to c ...

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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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