Boohoo Share Price

MaxiRobriguez

Bump.

Starting to feel like I could belong to the WallStreetBets crowd with my 55% loss on Boohoo shares. 

Down 15% today, but there's no media coverage as to why. Does anyone know?

Edit, found it:

Boohoo now expects its full-year underlying earnings to grow by between 6% and 7%, compared to previous forecasts of a 9-9.5% increase.

Sales are now set to grow by between 12% and 14%, far short of previous expectations of 20-25% growth.

sevenhills

Down 40% over the past month, we may have a long wait for some profit.

MaxiRobriguez

Anyone who bought the dip at 190/180/170 planning more dip buying?

london21

Now 107p
High risk, me personally not confirmable with retail at present after my M&S experience.
Covid uncertainty affecting the industry and also Boohoo's negative news past months. 

MaxiRobriguez

I chucked another grand in. I love losing money.

adindas

At the current price GBX 123.00, it is a bargain, imo.
I used to own this share but I sold it for a small profit to free money for another investment opportunity. At the current price I am tempting to re-enter.
Each to their own, but to me my only hesitation is that the apparel retailer which I do not really fancy, too much competition. But there is nothing wrong if not for LT holding.
I think the reason for price drop is something to do with the supply chain issues at its factories in Leicester. Also the long standing ethical issue, Its suppliers have been accused of underpaying workers.
I have not done a full DDs. But just to begin with the Avarage Analysst Price Target is GBX 379.58, High PT GBX 480 and Low PT GBX 135. So at the current share price, the Lowest band of PT of Analysts already higher than the current share price of GBX 123.00. A very good signal to start a full DD.

https://www.marketbeat.com/stocks/LON/BOO/price-target/

https://finance.yahoo.com/news/boohoo-sinks-as-supply-chain-crisis-hits-sales-and-profits-105244458.html

https://finance.yahoo.com/news/weakness-boohoo-group-plc-lon-112338536.html

From technical perspective, it seems there is already a confirmation of rebound.
All of this infomation might not be accurate, so please do your own DDs.

JustAnotherSaver

At the start of the whole covid crisis my brother was getting in to buying shares via apps like Freetrade. He spoke to me about it and I said if I was going to go with shares in a company i'd pick a company like BooHoo. Well known, online retailer, i thought they'd do well during such times.

So he did.

20 some months on, that didn't work out too well.

maxsteam

Sally57 said:

I hold around 20K in Boohoo but the share price has tumbled recently. Does anybody know why?

A little while ago they were widely seen as a trendy fashion outlet with good prospects. More recently they have become known as a big player in the Leicester slavery trade.

strawb_shortcake

Despite having a teenage Daughter, I'm not too familiar with the Boohoo brand, but for some reason I get their adverts on social media. Based on some of their questionable garments that I've seen advertised I'm not surprised the share price is low. If I was in to buying individual shares I'd avoid Boohoo based on their adverts.

adindas

JustAnotherSaver said:

At the start of the whole covid crisis my brother was getting in to buying shares via apps like Freetrade. He spoke to me about it and I said if I was going to go with shares in a company i'd pick a company like BooHoo. Well known, online retailer, i thought they'd do well during such times.

So he did.

20 some months on, that didn't work out too well.

IMO, for a stock like this, it is important to set up a stop loss for a fractional number of the shares you own or all of them. Also, the entry point is important so you do not buy it when they are around the peak. If your brother is ever doing this he will only make a very small loss.

If you read any trading Articles, Books, Watching the videos from authoritative sources, most of them (If not all) will tell you about this. Some are even making a blatant statement like this "cut your losses".

If the stop loss is ever triggered, you might still re-enter them at a lower price in the later date if you still believe in that stock. This will keep your price average lower. You might miss to re-enter at a lower price as the stock might be having a price break out, making a sharp move. But if it ever happens, just look for another opportunity in the market. If you just want to stick to the same stock, you could also wait until another pull back/dip due to bad news, market correction, missing the earning expectation, etc.

If you make a mistake but you still believe that the stock has a future after your updated DDs, no need to sell, especially if it means a big loss, you do not need the money urgently. Patient is the key, like the father of value investing is saying.

The difference of investing in individual stock a few decades ago with today is that, this information could easily be found in real time, free of charge.

Also, it is good to buy in a smaller chunk rather than in one go, as this will allow you to keep Dollar Cost Averaging (DCA) if keep dropping. 

That is my personal opinion and experience not necessarily will work for other people. I have done that a few times with BooHoo. But I only invest less than £200 at a time.

The reason why people want to invest in the individual stock is that, they want to beat the return from the market. If you just happy with the market return just stick to index fund such as S&P500. There is no point of taking additional risk, spending time DYOR.