Boohoo target £10+

Came across this video on piworld https://www.piworld.co.uk/2020/12/19/piworld-2020-round-up-of-the-year-paul-scott/

At 10.45 min Paul Scott is asked which of his current holdings (at December 2020) he is most bullish about for 2021.

He says without doubt it is Boohoo, far and away his largest holding. Reckons that without the ESG issues the SP would be double its current price (£3 in 12/20 x2 =£6) and he has a target price of £10+ with a hold forever approach to the stock.

He has suggested to the board that Boohoo consider listing on NASDAQ where they would get a more favourable rating.

Extremely bullish stuff. But then again what do I know - I bought at 30p and sold when it doubled!

Snazzy

ps Confession time - I bought back in at 175p on a dip

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The NASDAQ listing is often quoted as a way to increase the share price of a company. Sometimes it works, other times it does not. Either way for a listing on NASDAQ it would probably take a long time to come to fruition… 2 years if they started now?..and not without notable costs too.

The ‘problem’ I have with Boo is that PI’s love to day trade the hell out of it coupled with a national press that seems to have it in for the company. I see today there is a story about someone being upset that the dress they ordered had been rebranded. In truth it’s another ‘non’ story elevated to national status.

The other negative aspect with Boo is that in many ways it is perceived as something of a tech stock and traditionally trading on high multiples. In recent times such tech stocks have come off the boil partly as a result of increasing US Gilt yields.

Nevertheless the company is profitable, maintaining high top line growth rates and can forsee that continuing for some time yet.

My feeling is that Boo is genuinely a long term hold and forget type of share because the business is successful.

The question then becomes will someone come along and buy it? Always possible.

I have a reasonably large share holding in BOO… My third largest holding in the portfolio… Let’s see what April brings.

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