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Boohoo.com

September 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:
  • 77.75p
The shares shot ahead to 85p, a gain of 180% since our main buy recommendation at 30.5p in September ‘15, after the company said Q1’s strong trading (sales +41%) had continued into Q2 and it expects to beat forecasts. There is strong trading in all territories with spring/summer season ranges selling well. Management expects sales growth of between 28% and 33% and operational gearing will result in higher margins than expected.No news yet on the purchase of Pretty Little Thing, an online brand run by the founder’s sons, which is now reckoned to have sales of £25m. Boohoo has an option to buy it for £5m.In the light of the statement broker Peel Hunt  has upgraded by 10% to £24.5m pretax ...

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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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