Evil Knievil: Boo
0 mins. to read
I am astonished that Boohoo (LON:BOO) has fallen only 35p this morning. It is true that there is a powerful phalanx of supporters who hope against hope that this fall can be contained. But one must be realistic: the truth is that BOO has been poleaxed in that its margins are hugely suspect.
What PE is it on? I do not know but one must budget for the possibility that it has doubled. The business is dependent upon just in time ordering unwittingly subsidised by HMG.
I think it very unlikely that BOO did not know what was going on in Leicester.
Institutional investors will sell and the stock will be rated as uninvestable. I see Liberum have gone for a 350p target price. Sub 200p seems rather closer to probability to me.
Of course Boohoo knew what was going on in Leicester. Leicester is majority Asian, as are the majority of garment factories. Another worry is that Boohoo have just purchased a company from the bosses sons. Why?