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16 June 2021
09:06 hour

Should I buy Boohoo shares?

The Motley Fool UK

09/06/2021 - 17:35

The Boohoo share price is down 10% in the past year. Royston Roche likes the company due to its strong revenue and profit growth. The post Should I buy Boohoo shares? appeared first on The Motley Fool UK.


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  1. Where is the Boohoo share price going in June? (04/06/2021 - The Motley Fool UK)
    We Boohoo (LSE: BOO) shareholders haven’t had a great 2021 so far, with our shares down 9% since the start of the year. But we’ve just seen a bit of an uptick in the past couple of days, so where is the share price likely to go in June? Based purely on my opinion that Boohoo shares are undervalued, I reckon it should go up. But I do see some factors that appear to be holding it back. For one thing, the attraction of online sellers that propelled so many of them upwards in 2020 is subsiding. When high street stores are all closed, that’s good news for online retail, for sure. But that’s over now. And I think the early pandemic climb in 2020 was overdone. Well, overdone for the short term if it was based solely on the store closures effect, that is. With a long-term view to the company’s potential growth, I reckon the Boohoo share price was still good value, even at its high point last year. Boohoo share price volatility But the past year or so does highlight for me a couple of the risks of buying Boohoo shares. One is that, as with just about any growth share, there’s a lot of sentiment behind the price. And that sentiment can often turn sour. I think Boohoo should be one of June’s winners. But sentiment leads to volatility, and there’s every chance we could see a couple of bearish summer months. The Boohoo share price is up 35% over the past two years, which is a great result. But it’s down nearly 30% since mid-June last year. So depending on when an investor might have bought, Boohoo could be anything from a big winner to a big loser right now. And that’s in the space of just two years. The other big risk is it’s actually very hard to put a rational valuation on the stock. We’re now looking at a trailing P/E of over 40. There’s a lot of future growth already built into that valuation. I might simply have got my assessment wrong, and the shares might be overvalued. I don’t think so, but there’s uncertainty here. Slowing growth? There’s one other thing I reckon could be holding the Boohoo share price back from a bullish summer. It comes from the company’s last set of results. They were just fine, in my view. But the outlook for the current year will have disappointed some investors. Boohoo expects revenue growth of around 25%, which might sound good. But it does follow on from a year with 40% growth. And when revenue growth for a stock like this starts to slow, we often see a period of weakness. So to sum up. I think Boohoo deserves to gain in June. But there are short-term factors I think could hold it back. Still, I say that’s a good thing for investors who are still in a net buying phase. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s what I’m doing about Boohoo shares Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? What’s next for the Boohoo share price? Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Where is the Boohoo share price going in June? appeared first on The Motley Fool UK.
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  2. Will Boohoo shares rise after ASOS’s results? (12/04/2021 - The Motley Fool UK)
    The share prices of boohoo (LSE: BOO) and ASOS (LSE: ASC) are connected. After all, the companies are competitors operating in the same sector. So if one rises, it is likely to impact the other. Last week, ASOS released interim results, which were great overall. While I think this announcement is positive for the online retail sector, I’m bearish on boohoo shares. For now, I won’t be be buying the stock in my portfolio and I’ll explain why. ASOS’s results I think ASOS’s interim results were exceptional. In the six-month period, total sales and profit before tax increased strongly. But ASOS’s stock price fell on the back of this. I think there were a few reasons for this and I reckon it could hinder boohoo shares too. I think the fact that both online retailers have been winners in the pandemic is already factored into the stock prices. This is reflected in the high price-to-earning (P/E) ratios for each of the companies. But I also think why ASOS shares fell on its results is because there are concerns about whether the online retailer will continue to grow at the same rate now that the high street shops have opened in the UK. This is likely to impact boohoo as well.  ASOS also announced that it’s investing more in marketing. This means that if the cost of promotional activity is increasing for ASOS, then it’s likely boohoo may have to do the same to compete. This increase may place pressure on profitability for both online retailers. Hence I don’t think boohoo shares will rise after ASOS’s results. Boohoo’s own problems While ASOS may be its competitor, boohoo has enough of its own problems to contend with. Hence I will not be buying the stock on such a high valuation. I’ve previously commented on the allegations of slave labour that mean boohoo could face a potential US import ban. I found this alarming and yet the corporate governance issues will not go away. Boohoo is showing investors that it’s doing everything in its power to address these concerns ever since the scandal of exploitation of workers at its Leicester supplier factories. At the end of last month, the online retailer published a list of its UK suppliers six months after an independent review by Alison Levitt, QC. Boohoo also announced that it’s focusing on sustainability. For me, this is just the start of the company trying to redeem itself from its previous corporate governance issues. I’d like to see further evidence that it’s consistently improving its legacy problems. Recent concerns While boohoo may have figured out the fast fashion market, I’ve recently become concerned about the pricing of its items. The same items of clothing are being sold at different prices across boohoo’s brands. I reckon this is a problem of growing too quickly. In my opinion, customers pick up on these issues straight away and may lose trust with the brand. This could have an impact on boohoo shares. I can’t dismiss the phenomenal growth boohoo has achieved. But I think the corporate governance concerns could impact the share price. Especially when the stock is trading at a high P/E ratio of 57 times, it’s likely to be sensitive to any negative news. For now, I’ll only be monitoring boohoo shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Why did ASOS shares fall despite great results? Is the ASOS share price too low? Can the ASOS share price keep rising? Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will Boohoo shares rise after ASOS’s results? appeared first on The Motley Fool UK.
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  3. Should I buy Boohoo shares in my portfolio? (04/03/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares have been the AIM-darling, especially during the pandemic when the online retailer has seen a surge in sales. But the company is in the limelight again and not for the right reasons. New slave labour allegations against Boohoo have been made, which I’ll cover in detail. Will I be buying Boohoo shares now? No, and here’s why. Latest allegations Boohoo and its suppliers are facing the possibility of a US import ban due to allegations over the use of slave labour. In fact, Duncan Jepson, who runs the charity Liberty Shared, has claimed that Boohoo isn’t doing enough to stop forced labour in its suppliers’ Leicester factories. There are now reports that the US Customs and Border Protection (CBP) has seen enough evidence to launch an investigation after petitions from the campaigning British lawyer. If these allegations are true then I reckon there could be some severe implications for the company. If the US did block Boohoo’s products then its revenues would be hit. The company generates 20% of its sales from the region. Boohoo’s reputation and investor confidence would also be hit. If the allegations are proven true, I’d expect the shares to fall significantly. Boohoo released a statement in response to the media commentary. The company stated it hadn’t been informed of any investigation by the CBP, and that it is confident that it’s meeting the CBP’s criteria on preventing forced labour. Boohoo also stated that it’s willing to work with any authority to provide assurance that its products meet the required standards. Previous problems I must admit, I’m not surprised over the latest allegation regarding Boohoo. But it makes me uncomfortable investing in the stock. The company has had its fair share of problems, which have yet to be resolved. This isn’t the first time Boohoo has had slave labour allegations made against it. In 2019, it became the centre of  a scandal relating to exploitation of workers at its suppliers’ factories in Leicester. As a result, the company carried out a series of measures to reassure investors. One of these measures included hiring Sir Brian Leveson in November 2020 to provide independent oversight of its ‘Agenda for Change’ programme. This initiative’s focus is on key areas such as corporate governance and supply chain standards. However, I’m not convinced that the company is doing enough from a governance point of view. So I won’t be buying Boohoo shares for now.  The CPB’s inquiry may confirm that Boohoo is complying with standards. But it makes me wary over investing in the shares in my portfolio. Sales growth I can’t deny Boohoo’s phenomenal revenue growth. I expect this to continue. The combination of its own brands along with the recent acquisitions should help boost sales. It recently purchased the Debenhams brand and website, but not its stores. In its recent trading update, Boohoo expects full-year revenue growth to be between 36% and 38%, up from its previous guidance of 28% to 32%. I think this is very impressive. But for me, I reckon the concerns over governance are an overhang on the stock. For now, I continue to monitor Boohoo shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading The Boohoo share price is sliding: should I buy the stock today? A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Boohoo shares in my portfolio? appeared first on The Motley Fool UK.
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  4. Boohoo’s share price has fallen. Should I buy the stock now? (08/03/2021 - The Motley Fool UK)
    Boohoo’s (LSE: BOO) share price has been volatile in 2021. At times, it’s surged higher. On other occasions, it has pulled back sharply. Recently, the stock has pulled back again. As I write, it’s now close to its 2021 lows. Is this a buying opportunity for me? Let’s take a look at the investment case. What I like about Boohoo There are a number of things I like about Boohoo. For starters, it owns a number of powerful brands including PrettyLittleThing, Nasty Gal, MissPap and, of course, Boohoo. This year, it’s added more top brands to its portfolio including Debenhams, Dorothy Perkins, and Burton. These new additions could boost growth significantly. I particularly like the Debenhams acquisition. Its UK website gets approximately 300m visits per year. Secondly, Boohoo and its brands have incredible social media presence. On Instagram, for example, PrettyLittleThing has 13.1m followers (up from 12.5m in September) while Boohoo has 7.2m followers. Through Instagram, consumers can click through to purchase goods. Third, the company is growing at a phenomenal rate. Its last trading update in January showed total revenue growth of 40% for the four months to 31 December. There aren’t many retailers in the UK generating that kind of top-line growth. Finally, the company is financially strong and very profitable. Over the last three years, return on capital employed (ROCE) has averaged 22%. US import ban? Boohoo isn’t perfect however. The company seems to be regularly in the news for all the wrong reasons. For example, just last week, Sky News reported Boohoo and many of its suppliers are facing the possibility of a US import ban because of widespread allegations over the use of “slave labour”. According to Sky, US Customs and Border Protection (CBP) has seen enough evidence to launch an investigation into the company. Boohoo replied that it’s confident in the actions it’s taking to ensure all of its products meet the CBP criteria on preventing the product of forced labour entering the US. It also advised it hasn’t been notified of any investigation. However, this issue adds uncertainty to the investment case. US sales are currently about 25% of group total. So, a US ban would be a huge setback for the company. Is Boohoo’s share price a bargain? Turning to the valuation, Boohoo shares currently trade on a forward-looking P/E ratio of about 31. Normally, I’d say that’s an attractive valuation for a company growing as fast as Boohoo. However, given the uncertainty over the US investigation, that valuation does add some risk. My view on BOO shares Overall, I’m cautiously optimistic in relation to the outlook for Boohoo shares. There are certainly risks to be aware of. However, in my view, the company continues to have significant growth potential. I’d be willing to buy a small amount of shares for my portfolio today after the recent pullback. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Boohoo shares in my portfolio? The Boohoo share price is sliding: should I buy the stock today? A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Edward Sheldon owns shares in Boohoo. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Boohoo’s share price has fallen. Should I buy the stock now? appeared first on The Motley Fool UK.
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  5. Boohoo share price: here’s why I think now is a good time to buy shares (27/04/2021 - The Motley Fool UK)
    Online fast-fashion retailer Boohoo (LSE:BOO) has grown massively in the past five years. I think the FTSE AIM-listed share is currently priced low and believe now could be a good time to buy shares. Looking at the current Boohoo share price, I am tempted. I believe with recent acquisitions, Boohoo could be gearing up for the next stage in its growth journey.  Fast fashion, faster growth Founded in 2006, the UK-based online retailer has become hugely popular with its target market of 16-30 year-olds. It offers its own-brand fashion clothing and sells over 30,000 products across multiple brands. Over the past five years, the Boohoo share price has risen due to the massive growth. To provide some perspective, net profit has grown from £8.4m in 2015 to £64m for 2020. Boohoo also benefited from the pandemic. Many traditional retail outlets closed their doors and Boohoo’s sales jumped. Boohoo has had a habit of buying failing labels and folding them into their business. This has allowed it to grow its brand and diversify its offering. Recent acquisitions include Debenhams, Warehouse, and Dorothy Perkins. Boohoo share price journey In the past five years, Boohoo’s share price has increased by over 620%. The past 12 months has seen the Boohoo share price underperform in my opinion. The Boohoo share price has been affected by allegations of poor working practices. It was accused of using dubious suppliers and the working conditions were reported to be controversial to say the least. In addition to this, competitors have begun to catch up to its growth. Furthermore, the pandemic has forced many traditional retailers to invest in their own online platforms. Despite these negatives affecting the Boohoo share price, I do believe things are on the up. As I write this, Boohoo shares are trading for just under 350p per share. This is still nearly 8% higher than this time last month. I expect this upward trajectory to continue. FTSE AIM opportunity I believe the Boohoo share price is well priced enough to tempt me to invest. The reasons behind this are also linked to the next chapter of its journey. Boohoo is now in a position whereby it is no longer a startup. It possesses a market capitalisation of £4.5bn. This makes it one of the largest listed retail businesses in the UK and it is still only listed on the FTSE AIM. With this level of market cap, it must reach a certain level of maturity and conduct itself in a certain manner operationally. I believe this is happening. One step it has taken to show me it has matured is that of cutting ties with controversial suppliers. In addition to this, it is investing heavily in warehousing and office spaces and is planning to open its own factory in Leicester. This new initiative will surely help it manage demand and take itself to the next level to fulfil demand related to its new acquisitions. There is always going to be the spectre of mistakes made recently that could affect the Boohoo share price. In addition, competition will always be attempting to grow, which could affect Boohoo. I am, however, optimistic about the long-term outlook for Boohoo and its investment viability and would buy shares at its current price. Another stock I like is Tesco — I think it could be another good opportunity. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? Jabran Khan has no position in any shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Boohoo share price: here’s why I think now is a good time to buy shares appeared first on The Motley Fool UK.
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  6. Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? (10/05/2021 - The Motley Fool UK)
    If I didn’t already own Boohoo (LSE: BOO) shares, I’d be buying now, after last week’s bumper profits boost. The online fast-fashion giant reported a 41% jump in revenue, with bottom line adjusted EPS gaining 47%. But the Boohoo share price has slipped back a bit since the results were announced. And over the past 12 months, it’s down 8.5%. We are still looking at a 30% increase over the past two years, covering the whole of the Covid-19 crash period. But it’s been a very volatile ride, with huge swings. Why would I buy now? I invested in Boohoo because I think the company has a great long-term future and the shares were attractively valued. I still think that. But I also think I’m seeing a contrarian buying opportunity. It’s perhaps a risky investment, with the company still very much in a growth phase. And there’s been some negative news of late. Boohoo now owns an impressive array of brands, with Debenhams famously added to the stable. But that’s leading to some problems. Customers have found the same clothing priced differently under different brands. And we’ve had stories of garments being relabelled from one brand and sold under another. That’s not good for customer loyalty, it’s not good for investors, and it’s not good for the Boohoo share price. End of lockdown Before I get to the positives, I think I’m seeing another short-term phenomenon. That’s a post-lockdown slump for online businesses that were doing so well during the crash. While we couldn’t get out to the high street, internet shopping had it sewn up. The shares stormed ahead as a result. By June last year, Boohoo was well ahead of its pre-pandemic price. But that was overly enthusiastic, and we’re seeing the aftermath. And, as usual with share prices, I reckon the market is overreacting again, but in the other direction. But those full-year results were sparkling, weren’t they? As well as strong profit growth, Boohoo results showed two things I think should support the Boohoo share price going forward. Firstly, margins are fat. Boohoo boasted a gross profit margin of 54.2%, up slightly from the previous year’s 54%. And then there’s what I like best of all. Cash. At the end of the year in February, Boohoo had £276m net cash on the books.  Boohoo share price weakness Never mind picking through the ruins of all those big companies shouldering growing debt due to the pandemic, looking for the best recovery hope. Well, actually, I think that can be a profitable strategy too. But while some giants were struggling, Boohoo’s cash pile jumped by £35.4m. Operating cash flow gained too, at £201m (up from £127m). There’s a slight greyness over the outlook, mind. The company says it expects around 25% revenue growth in the current year. While many companies would be delighted with that, it’s a fair drop from the current 41% growth. That will surely underlie the Boohoo share price weakness too. But when growth stocks see growth fall back a bit, I think that can be a great time for long-term investors to top up. I might just do that. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading What’s next for the Boohoo share price? The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Alan Oscroft owns shares of boohoo group. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? appeared first on The Motley Fool UK.
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  7. Here’s what I’m doing about Boohoo shares (11/05/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares can be volatile. But last week, the fashion company released its full-year results. I was not surprised by the stellar numbers, especially as it has emerged as a pandemic winner. But the stock price tells a different story. For now, I’ll continue to monitor Boohoo shares. I still have concerns over the company’s ethics and supply-chain issues. I do not think these problems have disappeared and are likely to continue to overhang the stock. But I reckon the full-year numbers are worth analysing. So here are my thoughts. The results Boohoo saw a surge in sales last year. Revenue increased by 41% to £1.7bn. Profit before tax also jumped by 35% to £125m. These are impressive figures and the growth was phenomenal. As I previously mentioned, I’m not astonished by this performance. Boohoo operates solely online and hence has been shielded from lockdown restrictions. Also, it has managed to successfully adapt its products to the desire for comfy clothes to wear at home and gym gear during the pandemic. The outlook The board remains bullish for the next year. It expects to deliver full-year revenue growth of 25%. If this is achieved, I’d still be impressed at a performance in high double-digits. But I guess the pandemic sales surge will have to end at some point. I don’t expect it to carry on forever. This could hinder Boohoo shares. Even management has highlighted that “trading in the first few weeks of the financial year has been encouraging, however, the economic outlook remains uncertain”.  And the company is “experiencing significantly elevated levels of carriage and freight costs”. This is expected to continue in the next financial year. My concern is that it may eat away at profit margins. I think investors need to be cautious with Boohoo shares, especially as economies are starting to ease lockdown restrictions. I expect the company will be facing more competition from other store-based fast fashion retailers such as Primark that have now reopened their shops. After a year stuck indoors, most customers are likely to socialise outdoors and visit shops. I know I’d  rather venture outside than look at a computer screen. My concerns That said, I still expect it to do well. But the question I ask myself is, if the company is delivering fantastic results, why is this not reflected in Boohoo shares? Since the beginning of the year, the stock is down 6% and over the past 12 months the share price has decreased 13%. Well, I think there are worries over ethical, corporate governance and supply chain issues. I reckon  the company will continue to face scrutiny over these problems. Boohoo has made attempts to calm investors’ nerves by reviewing its supplier list, and issuing a major sustainability strategy. But I can’t help but wonder what else is going to come out of the woodwork. If it can sort out these problems once and for all, I reckon there is significant upside for Boohoo shares. But the firm is not in that position yet. Any flare-up of these ongoing concerns could put strain on its global expansion plans. For now, I’m holding fire on buying Boohoo shares. But as a long-term investor, I’ll be watching the stock like a hawk. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Soaring profits fail to boost the Boohoo share price. Is this a buying opportunity? What’s next for the Boohoo share price? The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? Nadia Yaqub has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s what I’m doing about Boohoo shares appeared first on The Motley Fool UK.
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  8. Boohoo shares: should I buy the stock today? (18/02/2021 - The Motley Fool UK)
    Boohoo (LSE: BOO) shares rose 15% in the past year. There is an increasing trend of online shopping in the past few years. I want to look deeper into the company to decide whether now is the right time to buy the stock. Boohoo shares’ fundamentals The company’s revenue growth has been strong. In the recent trading update released in January, revenue for the four months ended 31 December 2020 grew by 40% year-over-year to £660.8m. Growth has been strong in all the regions the company is operating in. UK revenue grew by 40% year-over-year to £357.2m, US revenue grew by 52% to £167.7m, rest of Europe grew by 30% to £90.4m, and the rest of the world grew by 20% to £45.5m. The group’s revenue for the 10 months ending 31 December 2020 grew by 42% to £1.47bn.  The management’s outlook is also strong for the future. The group’s revenue growth for the financial year to 28 February 2021 is expected to be 36% to 38%. This is better than the company’s earlier estimate of 28% to 32% growth. Taking into consideration the slowing growth in most companies, I believe this is very positive.  Another important metric is the profits of the company. The group continues to expect to deliver adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) margin at around 10%. The management’s medium-term guidance is 25% sales growth per annum and a 10% adjusted EBITDA margin. The company has a stable balance sheet as it had net cash of £386.9m.  Boohoo shares’ recent acquisitions The company has agreed to acquire all of the e-commerce and digital assets and associated intellectual property rights, including customer data, related business information, and inventory of the Burton, Dorothy Perkins and Wallis brands from Arcadia Group Limited. Boohoo will pay £25.2m from its cash resources. In addition to the strong brands, the deal will significantly increase the company’s active customers. Another advantage is it helps to grow Boohoo’s market share across a broader demographic.  Another important recent acquisition is the intellectual property assets including customer data and related business information and selected contracts of Debenhams for £55m in cash. The company is not acquiring any stores or stock. The deal will help the company to increase online market share along with expansion into the beauty, sports, and homeware market.  Risks to consider in Boohoo shares The company’s recent acquisitions might incur some additional costs in the near term, and there’s no assurance they will add value to the company. Boohoo might also be a victim of the cut-throat competition in the online retail space. The UK government is also planning to implement a 2% online sales tax on e-commerce sellers and marketplaces. The online tax could have a negative impact on online retail companies including Boohoo. Boohoo shares are currently trading at a price-to-earnings (P/E) ratio of 55. In spite of the various advantages of investing in the company, I would like to wait for a lower entry price as I feel the P/E ratio is expensive at the moment. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Should I buy or avoid Boohoo shares? Royston Roche has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Boohoo shares: should I buy the stock today? appeared first on The Motley Fool UK.
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  9. What’s next for the Boohoo share price? (05/05/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has outperformed the market over the past five years. The stock has added 585% since May 2016, compared to a return of 19% for the FTSE All-Share index over the same period.  However, over the past few months, the company has started to lag the market. Indeed, year-to-date Boohoo shares have declined nearly 5%. On the other hand, the FTSE All-Share has added 7%. That’s underperformance of 12% for the year so far.  The question is, should I make the most of this decline and snap up some shares of the fast-fashion business for my portfolio today?  Boohoo share price on offer?  Over the past five years, Boohoo has taken the UK fashion market by storm. The company’s sales have exploded as management has pursued an aggressive growth strategy. The firm has spent tens of millions on marketing and has very low costs. This means it can reinvest more profit than traditional bricks-and-mortar brands, driving a virtuous cycle.  After years of knock-out growth, it now looks as if the business is starting to mature. According to the company’s latest set of full-year results, revenue growth for the current year is expected to fall to ‘only’ around 25%, below the 41% increase in the year to February 2021.  These figures are, in a word, disappointing. The market has got used to the company’s explosive growth, and Boohoo has recently been snapping up new brands to bolster its customer offering. Newly acquired brands include Burton, Wallis and Debenhams. These brands are expected to deliver approximately five percentage points of the group’s overall growth for the year. That implies without these acquisitions, organic growth would be around 20%.  Valuation concerns  This sort of growth would be enough to send shares in most companies skyrocketing. However, there’s already a lot of expectation baked in to the Boohoo share price. As a result, the stock is trading at a price-to-earnings (P/E) multiple of 54.2, which is incredibly high. Even after factoring in the company’s growth, the stock is trading at a PEG ratio of 1.3. A ratio below 1 indicates the investment offers growth at a reasonable price and is therefore undervalued compared to its growth potential.  Still, the company has outperformed its own growth targets in the past. So, I wouldn’t rule out the same happening again. However, in the past, Boohoo has been a market leader. Today competitors are catching up, which could be one reason why its growth has slowed so substantially. If this trend continues, the slower growth rate could be the new normal for the fast-fashion business, which would have a detrimental impact on the Boohoo share price.  After taking all of the above into account, I’m not willing to buy Boohoo shares today. The company is still growing at a double-digit rate, and there’s a chance it could outperform expectations for the year. But its valuation does not leave much room for error. Another disappointment could lead to a re-rating of the shares to a lower multiple.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The Boohoo share price is up 627% in 5 years! Will history repeat? Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What’s next for the Boohoo share price? appeared first on The Motley Fool UK.
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  10. Why I think the Boohoo share price could keep climbing (19/04/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been one of the best growth investments to own in the market over the past five years. Since the end of April 2016, the stock has increased in value by more than 650%.  Unfortunately, despite this impressive performance, the stock has underperformed over the past 12 months. Since the end of April last year, shares in the company have returned just under 30%, compared to a return of nearly 140% for peer ASOS.  However, I think this is just a blip. I believe the Boohoo share price will return to its positive trajectory in the next few years.  Fast growth  The online fast-fashion retailer has reported explosive earnings growth over the past five years. Net profit has grown from just £8.4m in 2015 to 2020 for £64m.  Boohoo has been able to make the most of the pandemic. With most brick-and-mortar retailers closed, group sales jumped last year. Management has used these profits to buy up other struggling brands and increase the company’s diversification and footprint.  But while Boohoo’s growth has continued, the company has faced allegations of poor working practices. Competitors have also started to catch up to the business. The pandemic has forced brick-and-mortar retailers to invest in their online operations, increasing the number of options for customers. So as competition grows, it seems to me that investors are less inclined to pay a high price to buy in to this company.  I think these twin headwinds are to blame for the recent performance of the Boohoo share price. And they could continue to dominate investors’ opinion of the business as we advance. Fast-fashion is an incredibly competitive industry. Just because Boohoo has succeeded up to this point doesn’t mean it’ll continue to do so. Nevertheless, I think the company is getting ready for its next growth spurt.  Boohoo share price opportunity  Boohoo used to be an upstart in the fast-fashion market, but that’s no longer the case. Its market capitalisation of £4.5bn makes it one of the largest listed retail businesses in the UK. This suggests to me the company has reached a level of maturity, which requires a different approach. It needs to move away from the startup mentality, and that’s just what the business has been doing. Management has cut ties with dubious suppliers, is investing in warehousing and office space, and the firm is planning to open its own factory in Leicester.  I think all of these initiatives will help reinforce the company’s position in the market and prepare it for the next growth stage. With its new warehouse space, Boohoo will have the potential to service up to £4bn in sales every year. I think this capacity will help the organisation capitalise not only on demand for its existing products but also on the brands acquired over the past 12-24 months.  As such, I’m incredibly optimistic about the long-term outlook for the Boohoo share price. That’s why I’d buy the stock for my portfolio today.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the Boohoo share price could keep climbing appeared first on The Motley Fool UK.
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  11. What’s in store for the Boohoo share price in May? (28/04/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been uncharacteristically stable over the last couple of months. I think that could be set to change in May as the company reports its latest set of full-year results to the market. But in which direction will the stock go? Here’s my take.  Boohoo share price: ready to pop? Based on its last trading update, I think it likely that Boohoo’s latest numbers will be nothing short of stellar. Back in January, the company announced revenue growth of 40% in the last four months of 2020 with all brands performing well. Reading across from rival ASOS’s recent record results, I sincerely doubt trading has dramatically slowed since.  Aside from the numbers, I suspect Boohoo will provide another encouraging update on how its ‘Agenda for Change’ programme is going. This was brought in to implement all the recommendations made following Alison Levitt’s independent review of the supply chain.  So far, we know that the company has taken steps to consolidate its UK supplier base. Confirmation that directors will agree to link their bonuses to the firm’s performance on Environmental Social and Governance (ESG) measures would be another step in the right direction.  What may go wrong? Of course, whether Boohoo’s share price rises or falls is not purely dependent on how big the numbers released on May 5 are. It also depends on the extent to which those numbers meet or exceed expectations. Those who have played the game long enough know that investing is as much about psychology as it is about anything else. The more the market asks for, the greater the chance of it being disappointed. And there will come a time when Boohoo disappoints trading-wise. This is why I think it’s so important to consider the risks to stocks I own as much as all the reasons to hold. Perhaps the company’s original target market may turn away when they learn it now owns more ‘mature’ brands such as Dorothy Perkins and Debenhams. Maybe they won’t care. Even if they don’t, will Boohoo’s management be successful in spinning a lot more plates than it’s been used to? Another risk to the Boohoo share price is that online sales may moderate once coronavirus restrictions are fully lifted in June. Maybe job concerns will make people tighten their purse strings after an initial splurge. Right now, we don’t know. This is why it’s important not to get carried away on the AIM-listed giant’s prospects. To complicate matters, the current forecast P/E of 32 is reasonable enough for a top growth stock. However, it’s still high enough to fall hard.  No crystal ball All of the above makes estimating where Boohoo will be at the end of next month exceedingly tricky. As such, I would never buy a stock purely to try and make money over a few weeks. That’s a trader’s strategy. Some people can make it work. Most of us can’t. Notwithstanding this, I believe there’s a higher probability than not of a positive reaction in May. Boohoo feels like a better company than it was when its valuation peaked last June.  Whatever happens, I won’t be selling as I did a few years ago (albeit with a healthy profit). This is a long-term growth play and I want to be a part of it.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Paul Summers owns shares in boohoo group. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post What’s in store for the Boohoo share price in May? appeared first on The Motley Fool UK.
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  12. Will the Boohoo share price keep climbing? (13/04/2021 - The Motley Fool UK)
    The Boohoo (LSE:BOO) share price has been quite volatile over the last 12 months, rising and falling by double-digit percentages in a relatively short space of time. But recently, things appear to have begun stabilising. And it is now on an upward trajectory. So what caused all the volatility in the first place? Will the share price continue to rise? And should I be adding this stock to my portfolio? The volatile Boohoo share price In early July last year, the Boohoo share price crashed by nearly 50% following allegations made by The Sunday Times. The newspaper was the first of many to accuse Boohoo of poor labour practices as well as putting its workers at risk during the pandemic. Needless to say, this is quite serious. And so I wasn’t surprised when other clothing retailers dropped Boohoo’s products from their e-stores. To make matters worse, the company could even be facing a US import ban on its products, reports have claimed. Boohoo swiftly launched an independent review of its business to investigate these allegations. And in September, the review found no evidence of any criminal activity. The management team also stated it was not aware of any ongoing investigations by the US Customs and Border Protection agency but is prepared to work with authorities if requested to do so. These allegations, while unproven, have created some notable reputational damage. And looking at Boohoo’s volatile share price, there appears to be quite a bit of uncertainty as well. Based on current information, I think it’s unlikely that Boohoo will receive a US ban. But if it does, then a quarter of the firm’s total revenue would disappear. And it would also lose access to its fastest growing market. The underlying performance is encouraging Setting aside these issues, the company itself is performing exceptionally well. At least, I think so. In January earlier this year, Boohoo released a trading update that showed total revenues grew by 42% over the last 10 months. Seeing that level of growth coming from a fashion retailer is exceptional in my experience. And it would seem that the loss of the previously mentioned partnerships with other retailers hasn’t had a significant impact on performance. What’s more, the increased profits are being put to good use. Boohoo recently announced an expansion to its warehouse facilities to be completed later this year. Once operational, the site will substantially increase the business’s annual sales capacity. Combined, its four locations will give the group net sales capacity in excess of £4bn. Assuming it can continue generating more orders to take advantage of this increased capacity, I believe that the Boohoo share price can continue to climb even higher over the long term. The bottom line Boohoo continues to impress me. However, there is no denying that the scrutiny the company is currently facing adds a considerable level of risk and uncertainty. At today’s share price, Boohoo has a P/E ratio of around 50, which is relatively expensive even with its impressive growth. And in my experience, a high valuation mixed with uncertainty don’t tend to be a winning combination. So, while I do believe the business will thrive over the long term, I’m not going to be adding any shares to my portfolio today. But I did find another high-growth stock that looks far cheaper… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Will Boohoo shares rise after ASOS’s results? Zaven Boyrazian does not own shares in Boohoo Group. The Motley Fool UK has recommended Boohoo Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will the Boohoo share price keep climbing? appeared first on The Motley Fool UK.
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  13. Why the Boohoo share price still looks cheap (15/06/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price barely moved in early trading this morning. That’s despite the company providing what I believe to be another encouraging update on trading over the first quarter of its new financial year. Personally, I think the investment case here remains compelling. “Phenomenal growth” Total revenue hit just over £486m in the three months to the end of May. That’s a rise of 32% from the same period in 2020.  According to CEO John Lyttle, this “phenomenal growth” is even more impressive considering the strong comparatives from the previous year as more people shopped online under lockdown. It also represents a 91% jump over the last two years.  Fueled by the gradual lifting of restrictions, sales in the UK (Boohoo’s most established market) jumped by 50% to £274.6m. Across the pond, US revenue rose by 43% to just short of £132m.   In the rest of Europe however, sales weren’t so stellar, with revenue declining 14%. This was most likely due to ongoing concerns over the pandemic. In its ‘Rest of the World’ markets, sales declined by a similar percentage. This rather mixed performance, combined with the lack of change to guidance, goes some way to explaining why the Boohoo share price isn’t climbing today. What next for the Boohoo share price? Going against its reputation for increasing forecasts over the year, the company said it still expected revenue to grow by 25% in the full financial year. I’m still optimistic that this number will be lifted later in the year and Boohoo’s share price will react accordingly. The acquisition of the Dorothy Perkins, Wallis and Burton brands should begin bearing fruit. The launch of the new Debenhams website, featuring beauty and homewares as well as clothes, also adds some product diversification to Boohoo’s portfolio. Combine all this with those rocketing sales in the US and the opening of two new distribution centres in the UK and I think Boohoo’s valuation of 30 times earnings still looks ‘cheap’ for the growth on offer. Tellingly, the company’s PEG (price/earnings to growth) ratio is 1.1. This implies new investors are getting a good deal.  Making amends I’m also heartened by today’s update on the progress made by Boohoo in addressing concerns over its supply chain. In his third report on the matter, Sir Brian Levenson said that the company was now “demonstrating a degree of due diligence which may well go beyond that which is undertaken by other retailers or in other industries.” As a shareholder, I find this very comforting. So long as the company proceeds to publish its full (revised) global supplier list in September as planned, I suspect previously nervous fund managers will be willing to add the stock back to their portfolios. This should do no harm to the Boohoo share price.   Happy holder As a holder of the stock, I’m naturally biased. But it’s clear Boohoo could still face headwinds in 2021. A full re-opening could (temporarily) see fewer people heading online and wanting to spend their hard-earned cash on other things, such as foreign holidays. One also needs to keep in mind that sales in some markets could get worse before they get better, due to relatively sluggish vaccination rollouts. With near-£200m in net cash and a runway for ongoing growth however, I’m very relaxed about staying invested in Boohoo.  The post Why the Boohoo share price still looks cheap appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Boohoo shares? Where is the Boohoo share price going in June? Paul Summers owns shares in boohoo group. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  14. Stocks and Shares ISA: which shares should I buy in 2021? (13/02/2021 - The Motley Fool UK)
    There’s not long to go until we have a whole new ISA allowance. That means we can invest up to £20,000 more come April, and not pay any tax when we eventually cash it in. For me, it brings the same old questions again. What types of shares are best for my Stocks and Shares ISA, and how should I invest differently this year? I generally prefer to buy FTSE 100 shares that pay dividends these days, and that might seem like a sensible ISA strategy. After all, dividend shares are less risky, aren’t they? And it should be easier for me to stash them away and ignore them for years, just taking the annual cash, shouldn’t it? Well, I own shares in Lloyds Banking Group. And the Lloyds share price is down around 35% over the past five years. Oh, and my nice safe dividends have been halted. Sure, the dividend has been paused at the behest of the regulator, and I suspect it’s likely to be reinstated relatively quickly. And I might buy some more for my 2021 Stocks and Shares ISA. But it does shows that dividend shares aren’t necessarily safer than growth shares. Growth vs income Speaking of growth shares, I also have a holding in Boohoo, which doesn’t pay any dividends. But the Boohoo share price has soared eight-fold over the same five years. Unfortunately I didn’t buy them that long ago. But, so far at least, my ISA money would have done a lot better in the growth stock that is Boohoo than in income-paying Lloyds shares. People might make assumptions about the relative risks of various types of shares. But I prefer to ignore such generalisations and focus on the individual companies. So if I’m convinced that a company is a great one and its shares are good value, I’ll rate it a buy. If not, I won’t. Some will argue that putting Stocks and Shares ISA money into dividend-paying shares is a good choice for retired investors. It can hopefully provide a steady income — at least, steadier than growth shares paying no dividends at all. But then, I have a friend who retired with a portfolio of growth shares. They pay only modest dividends now, and for years didn’t pay any at all. He gets his income by selling some shares at regular intervals. Stocks and Shares ISA strategy So for me, if the overall value of my Stocks and Shares ISA is increasing over the long term, and I can take regular income from it (via selling shares or collecting dividends), I’ll be happy. But what about 2021 specifically? The Covid-19 pandemic has changed the investing landscape dramatically, hasn’t it? Well, it hasn’t changed my long-term strategy in the slightest. I’m still guided by Warren Buffett’s exhortation to look for great companies at good prices. That might get me some better bargains while share prices are depressed. But I’ll be investing in exactly the same kind of companies that I was seeking anyway. The priority for me is to use as much of my annual Stocks and Shares ISA allowance as I can, without worrying about short-term ups and downs. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Marston’s shares: what will I do now about the falling share price? Is it a good time to buy shares? 1 UK share I’d buy and hold for big returns Greatland Gold shares: should I buy for my 2021 portfolio? Coronavirus: will travel insurance protect me from cancelled summer holidays? Alan Oscroft owns shares of boohoo group and Lloyds Banking Group. The Motley Fool UK has recommended boohoo group and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Stocks and Shares ISA: which shares should I buy in 2021? appeared first on The Motley Fool UK.
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  15. The Boohoo share price is sliding: should I buy the stock today? (02/03/2021 - The Motley Fool UK)
    The Boohoo (LSE: BOO) share price has been sliding recently. Shares in the fast-fashion company have fallen around 4% over the past month and approximately 3% since the beginning of the year.  Over the past year, shares in the company have put in a better performance. The stock is up around 10%. However, this pales in comparison to its close peer, ASOS. Since the beginning of March 2020, shares in ASOS have returned 92%.  But I think this only tells part of the story. While the Boohoo share price has underperformed over the past 12 months, its underlying business has achieved remarkable growth, thanks in part to the pandemic. As such, I have been taking a closer look at the stock recently to see if it could be worth adding the company to my investment portfolio.  Boohoo share price opportunity The fast-fashion retailer achieved staggering growth in 2020. It reported revenue growth of 44% and net income growth of 46% for the year. The boom in profitability has enabled the group to go on a buying spree. It recently spent £25.2m buying the Dorothy Perkins, Wallis, and Burton brands from failed retail group Arcadia. That followed a £55m deal to buy the Debenhams brand and website.  While the business saw impressive growth in 2020, it also faced some significant challenges. An investigation into working practices at the company’s suppliers revealed that some workers were being paid below minimum wage. To deal with these issues, Boohoo set up its own investigation.  While the company has tried to rectify its problems, the allegations and revelations have dented its reputation in the City. This is one reason why the Boohoo share price has performed so poorly compared to ASOS over the past year. That said, it seems consumers are more than happy to continue buying from the group.  Still, this issue has reared its ugly head again today. According to a media report, the company could be facing a US import ban “because of widespread allegations over the use of slave labour.” Last year, the organisation generated more than a fifth of its global sales in the US, an important growth market for the firm.  A significant problem Boohoo’s labour issues are a significant problem for the firm. For its part, management has said that it has increased oversight of suppliers and “ taken action against 64 suppliers who did not meet the group’s standards in the levels of transparency that business requires.”  I think there are two sides to the Boohoo story. On the one hand, there’s the group’s explosive growth rate. On the other, there are the company’s supplier issues. Then there’s the aggressive nature of the fast-fashion industry to consider. Boohoo is the market champion today, but 10 years ago, Arcadia was a darling too. There’s no guarantee Boohoo will be able to avoid Arcadia’s fate.  Despite the recent performance of the Boohoo share price, I am not going to buy the stock today. I think there’s just too much uncertainty surrounding the group’s long-term outlook.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading A high-growth UK share I’d buy in my ISA and hold for 10 years Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Boohoo share price is sliding: should I buy the stock today? appeared first on The Motley Fool UK.
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  16. Best shares to buy now: 3 stocks I’d snap up today (03/05/2021 - The Motley Fool UK)
    Shares are having a great run at the moment. This year, the FTSE 100 is up about 8%. Meanwhile, the S&P 500 is up about 12%. Here, I’m going to highlight three shares I’d buy right now. I think all three have considerable growth potential in the current environment. A top UK tech stock One UK stock I think looks attractive at the beginning of May is Gamma Communications (LSE: GAMA). It’s a leading provider of unified communication solutions. The reason I’m bullish on Gamma is that I expect the ‘hybrid’ working model – where people work from home a few days per week – to become far more common. Gamma should benefit from this trend. Its communication solutions, which enable employees to work remotely, are well-suited to organisations that have a flexible working setup. Recent results for 2020, were very impressive. For the year, revenue was up 20%. Meanwhile, adjusted earnings per share were up 26%. Looking ahead, the company said it’s “positive about the outlook for the group in 2021 and beyond.” There are risks to the investment case, of course. One is the threat of competition – this is a competitive industry. Overall however, I think this growth stock has a lot of appeal. The stock’s P/E ratio of 31 seems fair to me, given the growth potential. A game-changing acquisition Another stock I’d buy right now is Boohoo (LSE: BOO). The leading online fashion retailer now owns a whole portfolio of big brands. These include PrettyLittleThing, Debenhams, NastyGal, and Coast. Boohoo has generated unbelievable growth over the last five years (revenue growth of nearly 800%) and I think the company’s recent acquisition of Debenhams is going to boost growth further. Debenhams is a well-known brand in the UK and its website gets approximately 300m hits per year. On the Debenhams website there’s now lots of Boohoo products (and other Boohoo brands) for sale. This stock can be volatile at times. So it’s not suited to risk averse investors. I’m comfortable with the volatility though. With the stock trading on a forward-looking P/E of about 31, I see it as a ‘buy’. A Warren Buffett-owned stock Finally, I continue to like Mastercard (NYSE: MA), which is listed in the US. I named this stock as a top ‘reopening’ play back in March and, since then, it has performed well. I think this Warren Buffett-owned stock has the potential to keep rising though. I like Mastercard for a number of reasons. Firstly, I think it should benefit as the global economy continues to reopen and travel picks up. Last week, the company said it’s started the year with “good momentum,” delivering positive net revenue growth in Q1. It also said it’s encouraged by the return of US spending levels to pre-pandemic trends. Secondly, the long-term growth potential here is significant. Over the next decade, we’re going to see trillions of transactions shift from cash to credit cards and electronic payments. Mastercard looks well-placed to benefit from this trend. This stock is not cheap. Currently, the forward-looking P/E ratio is about 48. This adds risk to the investment case. I’m comfortable with this valuation however, as the company is very profitable and has a lot of growth potential. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing Edward Sheldon owns shares in Mastercard, Gamma Communications, and Boohoo. The Motley Fool UK owns shares of and has recommended Mastercard. The Motley Fool UK has recommended boohoo group and Gamma Communications. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Best shares to buy now: 3 stocks I’d snap up today appeared first on The Motley Fool UK.
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  17. Rate my port? (14/02/2021 - Reddit Stocks)
    Should I sell my RY, ENB, CM and just buy some ETFs? ​ VOO 31 shares QQQ 27 shares RY.TO 48 shares ENB.TO 100 shares CM.TO 38 shares VGRO.TO 92 shares ARKK 10 shares VFV.TO 11 shares XUU.TO 22 shares ARKG 3 shares XIT.TO 7 shares VCN.TO 9 shares   submitted by   /u/FeignNewb [link]   [comments]
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  18. The Boohoo share price is up 627% in 5 years! Will history repeat? (04/05/2021 - The Motley Fool UK)
    Fast fashion retailer Boohoo (LSE:BOO) had a mixed year in 2020. The pandemic created disruption and a damning investigation cast a dark cloud over the popular FTSE-AIM stock. But growth in online sales was strong as Covid-19 accelerated the consumer shift to e-commerce. So, is 2021 offering a clean slate and a chance to bring further riches to loyal shareholders, or should buyers beware? Share price volatility Founded in 2006, the Manchester-based company defied the odds on AIM by going from a penny stock selling cheap clothing, to a fashion empire worth £4.3bn. It launched on the London Stock Exchange in 2014 at 85p a share. By the following year it had fallen to 25p and then soared until mid-2017. Since then, the Boohoo share price has been extremely volatile, but it’s never been back below £1. Focus on M&A Boohoo has had a clear M&A growth strategy in recent years and has made several major acquisitions. This has undoubtedly given the company serious clout in e-commerce and fast fashion. These acquisitions include Karen Millen, PrettyLittleThing and Nasty Gal. More recently it acquired the online side of Debenhams, which brings major customer data with it. It also pivots Boohoo into the lucrative world of beauty, currently a £12bn market in the UK. The company hopes this acquisition will accelerate its ambition to be the leader in fashion and beauty ecommerce. With plenty of cash in the bank, Boohoo is expected to continue with its acquisition spree. While the pandemic devastated traditional high street retailers, their online counterparts see a brighter future ahead. With so many popular brands under its belt, this gives Boohoo a competitive advantage. Its young target market of 16-30 year-olds like to look good both online and off. They also tend to have a disposable income for affordable, fashionable clothes. With this in mind, the growth trajectory for Boohoo may well resemble the past five years. But there are headwinds that can’t be ignored. The fashion industry is one of the biggest contributors to global pollution. With a heightened focus on ESG investing and sustainability, this could lead investors to look elsewhere. It may also lead to higher costs for the company to meet regulatory changes. And if inflation rears its ugly head, then fast fashion may not be as affordable, or the priority purchase it once was. Last summer the company became embroiled in an investigation into worker exploitation at a factory in Leicester making clothes for Boohoo’s Nasty Gal brand. It’s addressing this with plans that include higher supplier standards, offering educational training programmes for staff and suppliers, a new factory in Leicester, and moves to eliminate sub-contracting. Meanwhile, last month it announced it’s investing £50m in a fourth warehouse to increase capacity. This will create up to 1,000 jobs over time. Boohoo financials Boohoo doesn’t offer a dividend and I think it’s share price is quite expensive. Its price-to-earnings ratio is 62 and earnings per share are 5p. The Boohoo share price is down 21% from its 52-week-high and up 72% from its 52-week-low. I think that perfectly illustrates the fluctuating nature of this stock. I don’t have plans to buy shares in Boohoo at this time. For regular stock market investing ideas and help choosing the best shares to buy now, sign up to The Motley Fool today. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Best shares to buy now: 3 stocks I’d snap up today What’s in store for the Boohoo share price in May? 2 of the best UK and US stocks to buy today Boohoo share price: here’s why I think now is a good time to buy shares 3 UK shares I’d buy with £1,000 Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Boohoo share price is up 627% in 5 years! Will history repeat? appeared first on The Motley Fool UK.
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  19. 2 UK stocks I’d buy for a K-shaped recovery (15/02/2021 - The Motley Fool UK)
    In terms of the shape of the economic recovery ahead, I believe there’s a good chance it will be ‘K-shaped.’ With this form of recovery, some areas of the economy get stronger, while others get weaker. Fundsmith portfolio manager Terry Smith appears to share my view. In his recent letter to investors, he wrote that the concept might “help to explain what may happen.” Here, I’m going to discuss two UK stocks I’d buy for a K-shaped recovery. In my view, both are well placed for the ‘new normal’. An online retailer for a K-shaped recovery One UK stock that strikes me as a good way to play a K-shaped economic recovery is online fashion retailer Boohoo (LSE:BOO). While high street retailers have struggled over the last year, its sales have exploded. For the four months ended 31 December, for example, revenue was up 40%. Boohoo has a number of things going for it at present. Firstly, it’s benefitting from the shift to online shopping. Between now and 2025, online fashion sales are expected to boom. Secondly, it’s benefitting from a number of lifestyle trends. The increased focus on health and wellness is boosting demand for athleisure wear. Meanwhile, the increase in the number of people working from home is boosting demand for loungewear. Boohoo has made a number of acquisitions recently that could boost growth significantly. Last month, it acquired the Debenhams brand. This month, it has picked up the Dorothy Perkins, Burton, and Wallis brands. The company believes these brands strengthen its position as a leader in the global fashion and beauty e-commerce markets. There are some risks to be aware of here. One is integration risk. There is no guarantee the recent acquisitions will be successful. Another is a potential UK tax on online retailers. There’s also some valuation risk, as the forward-looking P/E of 35 doesn’t leave a huge margin of safety. Overall however, I see a lot of appeal in Boohoo shares. I see it as a good play for a K-shaped recovery. A UK disruptor Another UK stock that I believe could do well in a K-shaped recovery is Keystone Law (LSE: KEYS). It’s an innovative platform-based legal firm that allows its lawyers to work remotely and is therefore very scalable. Last year, it was named ‘Law Firm of the Year’ at the Lawyer Awards. Keystone posted a very encouraging trading update last month in which it advised that trading throughout December and early January had been “exceptionally strong”. As a result of this performance, the group advised that adjusted profit before tax for the period would be “materially ahead” of market expectations. Looking ahead, Keystone is expected to keep growing. City analysts expect the company to generate revenue and net profit growth of about 10.4% and 9.8% respectively this financial year. KEYS shares currently trade on a forward-looking P/E ratio of about 40. This means there is certainly some valuation risk here. If future performance is poor, the shares are likely to fall. It’s also worth noting that this is a small-cap company with a market cap of less than £200m. Stocks of this size can be highly volatile. All things considered, however, I think this growth stock looks attractive. I see it as a good one to own in my portfolio for a K-shaped recovery. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Should I buy or avoid Boohoo shares? I was right about the Boohoo share price last October. Here’s my plan for 2021 Edward Sheldon owns shares in Boohoo and Keystone Law and has a position in Fundsmith.  The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 UK stocks I’d buy for a K-shaped recovery appeared first on The Motley Fool UK.
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  20. 3 UK shares I’d buy with £1,000 (26/04/2021 - The Motley Fool UK)
    If I had £1,000 to invest in UK shares today, I’d buy a portfolio of growth stocks. So here are three companies I’d add without hesitation. UK shares I’d buy The first I’d buy with an investment of £1k is Boohoo (LSE: BBO). This fast-fashion business is profiting from the continuing rise of online retail, and it seems to be a well-managed enterprise. It has a strong balance sheet and has been using the pandemic to swoop on struggling peers, buying up growth at a low price.  If the company can continue to remain relevant with customers and buy additional growth without overpaying, I think this could make an excellent investment for the next few years. That said, if management does start to overpay on acquisitions and misread key fashion trends, growth could come to a sudden halt. The list of retail businesses that have collapsed over the past decade is extensive. Boohoo needs to work flat out to make sure it doesn’t go the same way.  Growth investment I think the trends that have become clear over the past 12 months will accelerate. In my opinion, that also bodes well for gaming developer Frontier (LSE: FDEV). One group of analysts believes this company could report earnings growth of as much as 60% in 2022. A slew of game releases, such as F1 simulation and ED Odyssey, could help drive this growth. Frontier’s portfolio of existing titles provides solid foundations from which to grow as well.  These are the reasons why I would buy this company for my £1,000 portfolio. I believe it is one of the best UK shares to own because it’s one of the few ways investors can plug into the booming gaming market. In the UK, at least, there aren’t many other options of high-profile gaming companies achieving such impressive growth rates.  Still, this business doesn’t come without its risks. The stock is currently changing hands at a forward P/E of more than 44. That doesn’t leave much room for error, in my opinion. If Frontier’s growth fails to live up to expectations, this valuation implies the stock could drop substantially.  Changing for the future Magazine publisher Future (LSE: FUTR) has taken a relatively old business model and put a twenty-first-century spin on it. The company has built a portfolio of specialist magazines and used the data derived from these publications to help bolster its advertising business. This has created a virtuous cycle, where the cash generation from old titles helps fund new acquisitions, which generates more cash flow, which funds new purchases… and so on. By using this strategy, the company’s net profit is expected to hit £140m by 2022. That’s up from a loss of -£1.3m in 2015.  Of course, these are just projections at this stage. Future’s growth isn’t guaranteed. The online advertising market is incredibly competitive. As such, if revenues come under pressure, the company may not be able to fund its acquisitions. This may bring growth shuddering to a halt.  Despite this significant challenge, I’d buy the stock for my portfolio of UK shares today.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading Why I think the Boohoo share price could keep climbing Top growth stocks for April 2021 Will the Boohoo share price keep climbing? Will Boohoo shares rise after ASOS’s results? 1 top growth stock for April 2021 Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended boohoo group and Frontier Developments. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 UK shares I’d buy with £1,000 appeared first on The Motley Fool UK.
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  21. Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 (08/02/2021 - The Motley Fool UK)
    It’s no surprise that risk appetite for UK shares has been quite weak so far in 2021. Investors have got the rolling Covid-19 crisis to think about as well as its impact on the global economy. There’s already signs of Brexit-related disruption, too, which in turn has raised fears over long-term damage to UK plc. These issues mean that UK share pickers need to tread carefully before investing their hard-earned cash. They don’t, however, mean that I for one will be diving for cover. I think there are still many great shares that should deliver meaty shareholder returns despite the uncertain outlook. Here are two top stocks I’d buy for my Stocks and Shares ISA and hold all the way through to 2030: #1: A strong UK share in an uncertain world I’m backing Avon Rubber (LSE: AVON) to thrive right through to 2030. Why? Well it’s a market leader in the manufacture of face masks for armed forces, the police, and security services. And it’s stacking up contracts at a rate — particularly so with the US Department of Defense — giving it terrific sales momentum for the next several years. The Covid-19 crisis casts a shadow over Avon’s profits picture to some extent. It could suffer some demand weakness as governments reduce spending, including on defence, in response to the recent economic shock.  But on the other hand Avon could see demand for its product move ever-higher as Western countries try to head off perceived threats from rising powers like China and Russia. Let’s take China for example. According to recent research from Rand Corporation, “Xi Jinping and his strategists are looking beyond his 2035 ‘fully modernized’ milestone to develop military theory and concepts for a ‘world-class military’ by 2050”. Then there’s rising civil unrest in the US and Europe, and the ever-present problem of terrorism, that I think could drive profits at UK shares like Avon through the roof this decade. #2: Fast online fashion = fat returns? Boohoo Group (LSE: BOO) is another top UK share I’d happily stash in my ISA today. 2020 was a brilliant trading year for online-only retailers like this as Covid-19 lockdowns forced shoppers onto the Internet. In my opinion, last year was no flash in the pan, and e-commerce is tipped to keep growing and growing. Boohoo has boosted its earnings prospects this week by acquiring the much-loved Burton, Dorothy Perkins, and Wallis brands from Arcadia. It’s paid just £25.2m for the privilege as well. Given the UK share’s successful acquisitions of PrettyLittleThing and Nasty Gal, this gives investors even more to get excited about in my opinion. There are risks to the likes of Boohoo, of course. Weak consumer spending in the event of a lumpy economic recovery could hamper revenues progress over the next few years. Rising awareness over sustainability also poses a threat to the long-term future of fast fashion specialists like Boohoo. There’s also a danger that extra sales taxes could be slapped on online retailers like this to help the ailing high street. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Should I buy or avoid Boohoo shares? I was right about the Boohoo share price last October. Here’s my plan for 2021 Here’s why I think the Boohoo share price is just getting started Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Avon Rubber and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 appeared first on The Motley Fool UK.
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  22. A high-growth UK share I’d buy in my ISA and hold for 10 years (20/02/2021 - The Motley Fool UK)
    2020 was a transformative year for many UK e-tail shares as Covid-19 lockdowns kicked in. The pandemic encouraged millions of people the world over to shop online for the first time. It caused existing e-commerce users to hit the net like never before as well. And it played into the hands of online-only retailers like Boohoo Group (LSE: BOO). Global revenues at the business soared 42% at constant exchange rates in the 10 months to December 2020. These came in at a whopping £1.48bn. Revenues in Boohoo’s core UK marketplace soared 38% year-on-year to £787m. But sales growth in its second-largest territory of the US stole the show. Turnover in this exciting market rose 67% thanks to market share grabs and terrific brand momentum. Investing for growth Promisingly, the UK fashion share has kept investing heavily to keep winning in the surging e-commerce market. It bought the Oasis, Warehouse, Burton, Wallis and Dorothy Perkins brands to boost its fashion portfolio in the past year. And it bought Debenhams that will drive it into the e-beauty sector. There will likely be exciting opportunities to buy more distressed heavyweight brands as well. Boohoo is also expanding its warehousing capacity and is set to open a new distribution centre in Northamptonshire. It is making good progress on the building of a new manufacturing facility in Leicester as well. Construction here is also set for completion later in 2021. Not without risks There are severe risks to Boohoo’s outlook over the short-to-medium term, however. The emergence of Covid-19 variants, and the effect they may have in prolonging social restrictions, could start to hamper clothing sales across the board. Office for National Statistics data showed fashion sales slumped 25% in 2020 as social activities stopped and people worked from home. Even UK e-tail shares like Boohoo, which have so far been immune to the wider malaise, could take a hit from a long economic downturn that would strike a blow to consumer confidence. Evidence is emerging that shopper sentiment is waning significantly, as analyst Howard Archer of EY Club notes. Clear evidence that the #UK #economy is taking more of a hit from #lockdown at the start of 2021 than it did in November, with #consumers seemingly markedly more cautious. #Retail sales volumes fell 8.2% month-on-month n January, essentially double the 4.0% m/m drop in November https://t.co/gVXZpMoVxO — Howard Archer (@HowardArcherUK) February 19, 2021 A high-growth (but expensive) UK share For the time being though, City analysts expect profits at Boohoo to keep soaring. Forecasts suggest the bottom line will swell 44% in the outgoing financial year (to February 2021). They estimate that earnings will soar 26% in financial 2022 too. I feel that the company has the goods to keep profits powering higher over the long term. And I’d happily buy it for my Stocks and Shares ISA. Now, Boohoo doesn’t come cheap. This UK share trades on a forward price-to-earnings (P/E) ratio of 42 times, illustrating market expectations of strong and sustained profits growth. But I’m aware this elevated multiple leaves the retailer’s shares in danger of a sharp price fall if its sales momentum begins to run out of puff. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Boohoo shares: should I buy the stock today? 2 UK stocks I’d buy for a K-shaped recovery Stock investing: 2 of the best UK shares I’d buy now and aim to hold until 2030 The Boohoo share price has underperformed Asos. Should I buy the stock? 2 UK growth stocks I’d buy in February Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post A high-growth UK share I’d buy in my ISA and hold for 10 years appeared first on The Motley Fool UK.
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  23. 2 of the best UK and US stocks to buy today (28/04/2021 - The Motley Fool UK)
    Here are two of what I consider to be the best UK and US stocks to buy today: A US online heavyweight One can’t really talk about e-commerce without mentioning Amazon (NASDAQ: AMZN). The US share was the trailblazer that revealed the huge potential of online shopping. Amazon’s record sales of $386bn (up $100bn year-on-year) during coronavirus-hit 2020 shows the retail giant is still the name to beat when it comes to online retailing. I believe the Amazon share price should continue to run and run following recent heady gains as well. The company has a long record of successful innovation in areas such as delivery, improving the customer experience, even creating the Kindle Unlimited e-book subscription service and the Amazon Echo virtual assistant. The US tech share continues to push the envelope to stay at the top of the tree too. It’s taking more control of its supply chain by building a fleet of planes and vans, for example. It’s also pioneering the rollout of till-less stores as it ramps up its assault on the grocery market. Of course, past performance is no guarantee of future success. It’s quite possible that some of Amazon’s costly endeavours will fall flat and fail to deliver the brilliant profits growth that some are expecting. Furthermore, the e-commerce boom of the past 12 months has led retailers across the globe to invest heavily in their own e-tail propositions. And this is likely to continue, multiplying the competitive pressures that Amazon faces going forward. Still, I think Amazon’s track record and significant clout make it a US share worthy of serious attention today. Even though it trades on a high price-to-earnings (P/E) ratio of 70 times, I consider this to be one of the best stocks to buy right now. One of the best UK e-tail stocks to buy  I’d also happily add Boohoo Group (LSE: BOO) to my Stocks and Shares ISA. The so-called fast-fashion segment is growing at a tremendous pace, just like the broader e-tail industry. This UK share then, offers investors the best of both worlds. Demand for cheap fashion took a knock in 2020 as Covid-19 lockdowns came into force. But the industry is expected to bounce back strongly from this year. Indeed, analysts at ResearchAndMarkets.com reckon the fast-fashion market will be worth $38.2bn by 2023, up from $35.8bn in 2019. And Boohoo is investing heavily to make the most of this booming market. It’s acquired some of Britain’s best-loved clothing brands in the last 12 months, or so. It’s also taken on more warehousing space in recent weeks to meet soaring demand for its goods. The Boohoo share price doesn’t look as expensive as that of Amazon on paper. But it still carries a high forward P/E ratio of 36 times. It’s a reading which also leaves it at the mercy of a severe share price slump if trading performances deteriorate for whatever reason. Despite this, and the rising threat of sustainability awareness to fast-fashion demand over the long term, I’d still buy this UK share for my portfolio. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Boohoo share price: here’s why I think now is a good time to buy shares 3 UK shares I’d buy with £1,000 Why I think the Boohoo share price could keep climbing 3 Warren Buffett stocks I’d buy for this bull market Top growth stocks for April 2021 John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended boohoo group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 of the best UK and US stocks to buy today appeared first on The Motley Fool UK.
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  24. This FTSE 100 stock has soared since 2020. Here’s what I’d do now (22/02/2021 - The Motley Fool UK)
    As I write these words, Flutter Entertainment (LSE: FLTR) is leading the FTSE 100 with the biggest price rise on the day. The only recent news I can see concerns the use of credit cards. Flutter has suspended their use in the UK for gambling transactions, and will extend that to Ireland from April. That should help rein-in problem gambling, and hopefully make the firm look good in the eyes of regulators. Shares in Flutter, previously known as Paddy Power Betfair, are up 4% on the day at the time of writing. That’s twice the gain of second-placed International Consolidated Airlines, up 2%. But daily price movements mean very little to me, so what’s the longer-term picture looking like? Over the past 12 months, covering the Covid-19 pandemic period, the Flutter share price has gained 59%. At the same time, the FTSE 100 is down 10.5%. As people can’t go out to pubs to burn through their cash that way, are more and more turning to online gambling to while away the lockdown hours? It does seem likely. Long-term horizon But even a 12-month share price movement means little in the greater scheme of things. And those investing for the long term to fund their retirements, like me, will surely be looking at five-year and 10-year horizons and beyond. Flutter shares are up 137% since early 2020. And, over the past decade, they have soared by more than 500%. Will that happen again? Should I stash Flutter shares in my ISA today? It’s the kind of growth I expect to see with small-cap hot growth stocks. But for a FTSE 100 share with a market capitalisation of £25bn, well, let’s just say it’s not an everyday occurrence. But the past is not what counts when it comes to investing in shares. What I’m interested in is the future, and that’s a lot harder to predict. So what’s the valuation looking like? Analysts are expecting earnings growth for Flutter this year. But we’re looking at P/E multiples of around 40. That’s close to three times the FTSE 100’s long-term average (which is closer to 14). Sometimes a growth stock genuinely warrants a premium rating like that. I currently hold Boohoo shares, for example, and they’ve often far exceeded Flutter’s P/E levels. But it’s rare for a FTSE 100 stock to sustain such a high valuation. FTSE 100 growth prospects The real question is about Flutter’s long-term growth prospects. The company is in its early days of expansion into the USA. And I do think there are some tasty opportunities there. So on the one hand, I’m drawn by what I see as a genuine long-term growth stock. But my big problem is the current Flutter share price valuation. The market, I think, is valuing Flutter too heavily on its short-term performance. And that has been boosted by the pandemic lockdown. What will happen when we’re all free again? I expect a fair bit of cash will be diverted away from gambling and back towards drinking and other social activities. Flutter Entertainment might appeal to younger investors with more appetite for risk. And it might have appealed to a younger me too. But the older me is saving the investment cash for stocks I see as less risky. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 of the best UK shares to buy this February Alan Oscroft owns shares of boohoo group. The Motley Fool UK owns shares of Flutter Entertainment. The Motley Fool UK has recommended boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post This FTSE 100 stock has soared since 2020. Here’s what I’d do now appeared first on The Motley Fool UK.
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  25. Is this news just what’s needed to boost the Marks & Spencer share price? (11/03/2021 - The Motley Fool UK)
    Marks & Spencer (LSE: MKS) has been struggling for years. While it’s always been good at selling food, its record in the clothing business has been wanting. Year upon year, M&S just can’t seem to buy in the clothing that people want — leaving more competent rivals to clean up. The effect on the Marks & Spencer share price has been devastating. Over the past five years, the shares have fallen approximately 50%. Over 10 years, we’re also looking at a drop of around 50%. What about 20 years? Guess what? A loss of about 50%. It looks like there’s something of a trend here, but there have been intermittent ups and downs in between. In fact, those who were phenomenally unlucky and bought in April 2007 have seen the M&S share price plunge nearly 80%. So what’s the latest M&S approach to trying to fix the problems? Well, it’s going to sell other people clothes. Under a new Brands at M&S banner, the company is going to offer clothing from 11 rival producers. It will only be online, mind, so it won’t do anything to help footfall at high street stores. But then, little can be done about that until the Covid lockdown eases anyway. And if online selling gets a boost, maybe we could eventually see these new brands appearing in stores? Turbocharging growth? M&S says the venture is intended to “adapt its clothing business to be more relevant, more often to customers, including introducing exciting partner brands to turbocharge online growth.” I don’t know about turbocharge, but I think any kind of charge would be a help — especially if the M&S share price sees any benefit. So what of those partner brands? In the next few months, we’re going to see Hobbs, Jack & Jones, Triumph, Seasalt Cornwall, Phase Eight and others appearing on the website. They’re all well known and popular brands. And speaking of well known brands, M&S bought the Jaeger brand from administrators in January. It was previously owned by Edinburgh Woollen Mill Group, which sadly went bust. The deal doesn’t include the stores, and it sounds like it could be a canny move. Will this make a difference for M&S as an investment? I’m really not sure. Director of Brands Neil Harrison reckons the new mix will offer the firm’s customers something new. But M&S needs to reach the many more millions out there relying on retailers like Next, Boohoo, and ASOS, who are masters of the online selling art. I think latching on to a handful of popular brands might help it do just that. Marks & Spencer share price rebound We’re coming out of the Covid-19 crisis — which led to M&S recording its first ever loss as a public company. And with shoppers hopefully returning, it seems like a good time for a new plan. The Marks & Spencer share price has picked up since November too, for a relatively modest 15% fall since mid-February last year. But I suspect M&S’s wider transformation plan still has some way to go before we’ll see much improvement on the bottom line, and I’ll wait and see. For now, my rag trade investment cash is staying in Boohoo shares. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’d avoid the MKS share price and buy these cheap UK stocks instead Alan Oscroft owns shares of boohoo group. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is this news just what’s needed to boost the Marks & Spencer share price? appeared first on The Motley Fool UK.
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  26. ASOS share price: I think it’s set to go higher (15/02/2021 - The Motley Fool UK)
    Shares in ASOS (LSE: ASC) have performed well recently. Since their stock market crash lows of around 1,000p, they’ve risen about 430%. Meanwhile, over a 12-month time horizon, they’re up about 60%. Looking ahead, I believe ASOS’s share price has the potential to keep rising. Here are a few reasons I’m bullish on the stock. ASOS: poised for long-term growth The first reason is the online fashion market looks set for big growth in the years ahead. As a result of Covid-19, the shift to online shopping in the fashion space has accelerated. Last week, analysts at Bank of America (BoA) said that 2021 is on track to become another “killer year” for online retailers. It believes last year’s pandemic-driven growth is just the beginning of the growth story. And BoA expects revenues across the online retail companies it covers (including ASOS) to more than double between 2020 and 2025, to £38bn. “We believe these businesses are not simply pandemic beneficiaries, they are structural winners,” BoA analysts wrote. “The pandemic seems to have irreversibly accelerated changes in consumer behaviour,” they added. In another research note last week, analysts at Credit Suisse said consumers today tend to prefer ‘multi-brand’ websites. These kinds of websites make life easier for shoppers because they don’t need to have dozens of apps on their phones and re-enter payment and contact details on each one. This is encouraging for a company like ASOS which sells a wide range of brands. ASOS shares: bullish sentiment I’m also very encouraged by the analyst sentiment towards ASOS shares at present. Recently, a number of brokers, including JP Morgan, BoA, and Credit Suisse have upgraded their price targets significantly. The latter’s is more than 30% above the current share price. It’s worth noting that analysts at BoA even gave the stock a ‘double upgrade’ recently, lifting it from ‘underperform’ to ‘buy’. “Looking forward, we think ASOS should see a tailwind to order volume growth as the world normalises,” its analysts wrote. Low valuation vs Zalando Finally, the valuation on ASOS shares isn’t stretched, in my view. Currently, the business has a market-cap of £5.1bn. That means the forward-looking price-to-earnings (P/E) and price-to-sales (P/S) ratios are 36 and 1.3 respectively. By contrast, rival Zalando has a market-cap of approximately £22.3bn. Its P/E and P/S ratios are 86 and 2.4 respectively. Comparing the two online retailers, ASOS looks undervalued. Risks Of course, there are risks that could derail the momentum that ASOS’s share price has right now. One risk is the threat of competition. Rival Boohoo is currently growing at a fast pace and, like ASOS, is making key acquisitions. Amazon is also capturing market share in the UK online fashion space. There could also be complications with the integration of ASOS’s recently acquired brands (Topshop, Topman, and Miss Selfridge). If there are setbacks here, it could hit the share price. ASOS share price: I think it’s going higher Overall however, I think the outlook for ASC shares remains favourable. In the next few years, I expect its share price to climb much higher. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading I’m avoiding the BP share price. I prefer this FTSE AIM stock for 2021 instead The Boohoo share price has underperformed Asos. Should I buy the stock? The Lloyds share price is recovering but here’s why I won’t buy back in A top UK growth share I’d buy in my Stocks and Shares ISA in February! Topshop deal lifts ASOS share price: should I buy? Edward Sheldon owns shares in ASOS, Boohoo, and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended ASOS and boohoo group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post ASOS share price: I think it’s set to go higher appeared first on The Motley Fool UK.
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  27. Is it time to buy Superdry shares? (13/04/2021 - The Motley Fool UK)
    Like most listed companies with a high street presence, fashion retailer Superdry (LSE: SDRY) was pummelled by the coronavirus in 2020. By mid-March last year, its shares were changing hands for just over 100p. Since then however, they’ve bounced roughly 150%! Could there be more to come now the company’s been allowed to re-open its stores? Superdry shares: positives and negatives Based on the general reaction from consumers, things certainly look encouraging. By yesterday afternoon, reports suggested that high street footfall was nearly double that recorded last week. Although Superdry wasn’t explicitly mentioned, I’d imagine more than a few people wandered into its stores.  There are also reasons to be positive on the company’s ongoing ‘reset’ after years of underperformance. Back in January, CEO and founder Julian Dunkerton said Superdry was making “great progress” with its “influencer-led, digital marketing strategy.” This included a new partnership with football star Neymar Jr. As someone with 143m followers on social media, that looks to be quite a coup for the business.  But will all this be sufficient to resurrect its image among younger shoppers? I’m not so sure. Long gone are the days when Superdry was the fashion brand to be seen wearing. Online giants such as Boohoo and ASOS, I’d argue, are now far more popular with Superdry’s original demographic. On top of this, the company’s balance sheet is a lot less robust than it once was. To be clear, it’ll be a feat for the company to return to the days when the shares changed hands for 2,000p a pop (2018).  A more general argument against buying shares in any UK retailer now is that the rush to the shops will prove short-lived as savings made during lockdown run out. Alternatively, those who are able to continue spending will be more likely to go on holiday abroad or enjoy more time in pubs and restaurants.  Superdry is a great example of the adage that investors should buy ‘when there’s blood on the streets’. Notwithstanding this, I wonder if the rally is almost done. Better bet? One example of a company I’d buy over Superdry shares right now is XP Power (LSE: XPP). A world away from the high street, the mid-cap manufactures critical power control components. Its share price is up over 9% this morning following the release of a decent trading update.  While order intake over the three months to the end of March was pretty much flat relative to the same period in 2020, it was actually up 32% from the previous quarter. Partly due to a buoyant semiconductor sector, this goes some way to showing how well XPP has recovered from the pandemic. All told, revenue rose 16% to £57.1m over Q1. Based on the current demand for its products, I can see this rebound continuing. Aside from this, XPP’s balance sheet looks solid with only £18.4m in net debt. Although not an income stock, news that the mid-cap would return 18p per share in dividends for Q1 is another sign of confidence. Sure, nothing can be guaranteed. XP acknowledged today that Covid-19 uncertainty could still impact business. Moreover, at 25 times earnings, the shares weren’t exactly cheap before markets opened this morning. They’ll now be even more expensive! Nevertheless, I’d buy this hot growth stock over a still-troubled retailer any day.   FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I’d add Superdry shares to my ISA today Paul Summers owns shares of boohoo group. The Motley Fool UK has recommended ASOS, boohoo group, and XP Power. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is it time to buy Superdry shares? appeared first on The Motley Fool UK.
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  28. 2 stocks I’d buy over Rolls-Royce (14/05/2021 - The Motley Fool UK)
    Back in November, I highlighted a stock I’d buy over Rolls-Royce, even though the engineer is one of the most popular shares in the UK at present. That was dotDigital, an under-the-radar UK technology company that provides digital marketing solutions. That call worked out pretty well. Since that article, DOTD shares have risen about 45%. Over the same timeframe, Rolls-Royce shares have fallen about 4%.  Here, I’m going to discuss two more stocks I’d buy over Rolls-Royce. These may not deliver the same kind of short-term outperformance dotDigital did. However, in the long run, I expect them to outperform RR shares. This UK company is growing much faster than Rolls-Royce One UK stock I’d buy today is ASOS (LSE: ASC). It’s a leading online fashion retailer that offers a market-leading app and mobile/desktop experience in over 200 markets. In its last financial year (ended 31 August 2020), it generated sales of £3.2bn. ASOS has grown at a tremendous pace in recent years (five-year revenue growth of 185%) and, looking ahead, I expect the company to keep growing. Currently, City analysts expect the group to generate top-line growth of 22% this financial year and 18% next year. This growth is likely to be driven by the continuing shift to online shopping, increased smartphone penetration, advances in payments technologies, as well as new technologies such as augmented reality (which can be used to create ‘virtual’ changing rooms). But there are risks to the investment case here, of course. One is the threat of competition. ASOS faces intense rivalry from a number of other retailers including Boohoo and Next. With the stock currently trading on a forward-looking price-to-earnings ratio of less than 30 however, I think the long-term risk/reward proposition here is attractive. This growth stock is also hard to ignore Another stock I’d buy over Rolls-Royce today is Amazon (NASDAQ: AMZN), which is listed in the US. It’s the largest e-commerce company in the world. It’s also a leader in cloud computing with its Amazon Web Services (AWS) division. Amazon is continuing to grow at an unbelievable rate. Its first-quarter results, for example, showed 44% growth in the e-commerce division, along with 32% growth in its cloud division. Looking ahead, I think Amazon has a long-growth runway ahead. I’m particularly excited about growth in the company’s cloud division. The global cloud computing industry is projected to grow at about 18% per year between now and 2025. This should provide huge tailwinds for Amazon. It’s worth noting that since Amazon posted its Q1 results, a number of brokers have lifted their price targets for the stock and many of these targets are much higher than the current share price. One broker went as high as $5,500 – 70% higher than the current price. So Amazon is an expensive stock. Currently, it sports a forward-looking P/E ratio of just under 60 and that means there’s some valuation risk here. If growth stalls, the stock could take a hit. I just think that in five years’ time though, this company is likely to be much bigger than it is today. That’s why I’d buy its stock over Rolls-Royce shares. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Tesco shares or Amazon shares? Amazon just had a blowout quarter. Should I buy the stock now? Amazon earnings demolish expectations: 5 metrics you should see 2 of the best UK and US stocks to buy today 3 Warren Buffett stocks I’d buy for this bull market Edward Sheldon owns shares in ASOS, Boohoo, dotDigital, and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS, boohoo group, and dotDigital Group and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 2 stocks I’d buy over Rolls-Royce appeared first on The Motley Fool UK.
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  29. UK e-commerce stocks: here are some of my top picks for 2021 (26/04/2021 - The Motley Fool UK)
    When it comes to growth industries, it’s hard to ignore e-commerce. Over the last five years, global online retail sales have grown from around $1.5trn to around $4.3trn. By 2027, e-sales are expected to reach a whopping $10trn. For investors, this extraordinary industry growth is creating many lucrative opportunities. With that in mind, here’s a look at my top UK e-commerce stocks for 2021 and beyond. UK e-commerce stocks: online retailers Let’s start with e-tailers. In this sub-sector of the online shopping market, my preferred plays are fashion retailers ASOS and Boohoo. These are pureplay online retailers. In other words, they’ve no physical stores. Both of these businesses are growing at a rapid rate. ASOS, for example, has registered five-year annualised sales growth of 23%. Boohoo has done even better, generating five-year annualised revenue growth of about 55%. Going forward, both companies look set for continued growth. That said, e-commerce is a competitive industry and these companies face intense competition from the likes of Zalando and Amazon. Another UK online retailer I think is worth mentioning here is Ocado. It’s the leader in the grocery market. It’s growing at a fast pace but losing money currently due to the investments it’s making in its warehouse automation division. There are also some companies that generate a proportion of their sales online such as JD Sports Fashion. I think JD is well-placed to benefit from the ‘casualisation’ trend and the increasing demand for premium athletic footwear. Like ASOS and Boohoo though, it faces plenty of competition. Warehouse stocks Another area of the e-commerce value chain that can provide investors with opportunities is warehousing and logistics. My preferred plays here are Tritax Big Box REIT, Urban Logistics, and Clipper Logistics. Tritax and Urban Logistics provide crucial warehousing services to retailers such as Amazon and delivery companies such as DHL. Clipper, meanwhile, provides a range of services to retailers including warehousing, delivery, and returns management. Two other companies worth a mention are Segro and Warehouse REIT, which both manage warehouses. All of these companies look well-positioned to benefit from the growth of e-commerce, in my view. However, they do face risks. In economic downturns, warehousing companies cannot always collect all their rent. Packaging stocks Packaging companies are also worth checking out when looking at e-commerce stocks. After all, nearly everything we buy online comes in some form of cardboard box or plastic packaging. My preferred play here is DS Smith. It’s a packaging powerhouse with a focus on sustainable packaging. Three other UK companies in this space worth a mention are Mondi, Smurfit Kappa, and Macfarlane. I’ll point out that packaging is quite cyclical. These companies can suffer during economic contractions. Online shopping stocks: I’m investing globally It’s worth noting that many of the most dominant e-commerce stocks are listed overseas. For example, companies such as Amazon, Shopify, and eBay are all listed in the US. The US also has plenty of payments companies such as Mastercard, Visa, and PayPal, which are all benefiting from the growth of e-commerce too. I personally own both UK and US e-commerce stocks in my portfolio. I figure that this is the best approach to get broad, diversified exposure to this high-growth industry. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 3 British dividend stocks I’d buy for passive income 3 UK funds I’ve been buying for my Stocks and Shares ISA How to prove financial hardship The Helium One share price is surging. Should I buy now? The Shell share price crashed 50% in 2 years. I’d buy RDSB now Edward Sheldon owns shares in ASOS, Boohoo, JD Sports Fashion, Tritax Big Box, Clipper Logistics, DS Smith, Mondi, Amazon, Shopify, Mastercard, and PayPal. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon, Mastercard, PayPal Holdings, Shopify, and Visa. The Motley Fool UK has recommended ASOS, boohoo group, Clipper Logistics, DS Smith, eBay, Tritax Big Box REIT, and Warehouse REIT and recommends the following options: long January 2022 $1920 calls on Amazon, short June 2021 $65 calls on eBay, short January 2022 $1940 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post UK e-commerce stocks: here are some of my top picks for 2021 appeared first on The Motley Fool UK.
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  30. S P A C question (24/02/2021 - Reddit Stocks)
    So if a S P A C issues shares that investors can buy for usually $10 with a warrant, does that mean that those shares are turned into shares of the newly acquired company once an acquisition has been made. E.g if I buy 100 shares of the S P A C and the S P A Acquires company x, will I then now own 100 shares of company x?   submitted by   /u/ThouShallSeeDeath [link]   [comments]
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  31. Here are the UK growth stocks I own right now (19/04/2021 - The Motley Fool UK)
    UK growth stocks have played a valuable role in my investment portfolio in recent years. While many of my blue-chip FTSE 100 dividend stocks have delivered underwhelming returns, most of my growth stocks have risen in value, powering my portfolio higher. Today, I’m going to give Motley Fool readers some insight into my portfolio by listing the 13 UK growth stocks I currently own. Combined, these stocks represent about 25% of my overall portfolio. My UK growth stocks Within my UK growth stocks chart above,  you can see my two largest holdings are online fashion retailers ASOS and Boohoo. I own these stocks because I expect the e-commerce industry to get much bigger in the years ahead and I think these companies should benefit. After ASC and BOO, my next largest growth stock holdings are property website group Rightmove and IT infrastructure company Softcat. I like these companies because they have good long-term growth track records and are very profitable. DotDigital, Alpha FX, and Keystone Law are three more under-the-radar UK growth stocks I own. DotDigital is an innovative tech company that offers a digital marketing platform. Alpha FX is a founder-led financial services firm that specialises in foreign exchange risk management. Keystone is a disruptive platform-based law firm. All three companies are growing rapidly and are very profitable. The next three holdings, GB Group, Keywords Studios, and Gamma Communications are all UK tech stocks. GB Group specialises in identity management while Keywords Studios offers technical services to the video game industry. Gamma provides unified communication services, helping businesses enable their employers to work remotely. I think all three are well-placed for growth in today’s digital world. Finally, I have smaller positions in 5G network testing specialist Calnex Solutions, JD Sports Fashion, and Clipper Logistics. Higher-risk shares I’ll stress that all of these stocks are higher-risk. Many of them are small-cap stocks which means their share prices can be very volatile at times. Additionally, most trade at high valuations meaning there’s valuation risk. If growth slows, their share prices could fall. However, I’m comfortable with these risks. They also represent a relatively small proportion of my overall stock portfolio. So, if one or two of these stocks were to underperform, my overall portfolio wouldn’t take a huge hit. How my growth stocks have performed In terms of performance, my growth stocks have performed quite well. With the exception of Calnex and Gamma (which are both relatively new holdings for me) all of these stocks have delivered double- or triple-digit returns. Stock Gain/loss % ASOS 195% Boohoo 37% Rightmove 28% Softcat 75% Dotdigital 114% Alpha FX 110% Keystone Law 23% GB Group 145% Keywords Studios 152% Gamma Communications 4% Calnex Solutions -7% JD Sports Fashion 183% Clipper Logistics 29% What’s my secret to success? Well, for starters, I focus on companies that are already profitable and generating consistent growth. I find this dramatically increases the chance of success with UK growth stocks. Secondly, I tend to focus on companies that are highly profitable. Most of these have a very high return on capital employed (ROCE). Softcat, for example, has a five-year average ROCE of 62%. Third, I tend to buy my growth stocks during periods of stock market volatility. This often provides more attractive entry points. Finally, I hold my growth stocks for the long term. These gains haven’t come overnight. In most cases, they’ve come over several years. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading UK shares to buy now: how I’d invest £2,000 today The HSBC share price is rising. Is now the time to buy? Here’s why I think the Barclays share price could climb in 2021/22 2 of the best UK high-dividend shares Hargreaves Lansdown investors are buying GSK shares. Should I? Edward Sheldon owns shares in Alpha FX, ASOS, boohoo group, Calnex Solutions, JD Sports Fashion, GB Group, Keystone Law, Clipper Logistics, dotDigital Group, Gamma Communications, Keywords Studios, Rightmove, and Softcat. The Motley Fool UK has recommended Alpha FX, ASOS, boohoo group, Clipper Logistics, dotDigital Group, Gamma Communications, Keywords Studios, Rightmove, and Softcat. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here are the UK growth stocks I own right now appeared first on The Motley Fool UK.
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  32. I own some shares in a stock that the company decided to redeem 100% of the shares. (18/05/2021 - Reddit Stocks)
    So, I bought the shares kind of cheap and this is my first time going through a buy back or 100% redeeming of shares by the company. I want to know how the process takes place. Since I have the shares through TD, and this is a 100% redeem by the company, will this automatically take away my shares and corresponding share cost will be added to my account? Is there a formal procedure that I need to be a part of to ensure I get paid?   submitted by   /u/Firestorm_001 [link]   [comments]
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  33. ASOS shares are rising: here’s what I would like to do (19/03/2021 - The Motley Fool UK)
    British online fashion retailer ASOS (LSE: ASC) shares have more than doubled in the past year. Of course, past performance is not an indication of future results. The company’s focus on young consumers helped it grow its revenues rapidly. On the other hand, the lockdown has helped to boost online sales. A good growth stock is a must for my portfolio. I would like to understand the pros and cons of investing in this stock. Bullish reasons to buy ASOS shares The company’s revenue growth is strong. It grew at a compounded annual growth rate of 23% from the fiscal year 2016 to the fiscal year 2020. In the trading period for the four months ended 31 December 2020 revenue grew 24% year-over-year to £1.4bn. It was primarily helped by UK retail sales growth of 36% y-o-y to £554m.  The company has a wide range of brands and products to offer. This has helped to retain and grow its customers. As per the most recent trading report, it has 24.5m active customers. The company has a strong social media presence with over 1m Twitter followers. This is almost double that of its competitor Boohoo. It also regularly uses Instagram and TikTok to engage with its customers. The company’s efficient use of social media has helped it to become a global brand.   ASOS has recently bought four brands from Arcadia Group, including Topshop, Topman, Miss Selfridge and HIIT. Topman has more than 3.3m active customers and Topshop has 11.8m Instagram followers. The move should increase the portfolio of its own products and also increase the company’s brand value.  The management expects the fiscal year 2021 profit before tax to be at the top end of market expectations. The company has a stable balance sheet. Cash generation was also positive for the last fiscal year. This is another reason why I like ASOS shares. It had a net cash position of £407.5m at the end of the fiscal year 2020. Risks to consider  There is a growing concern that high street stores are closing due to competition from online stores. This is definitely not a good trend for the overall economy in the long term. The government might introduce higher taxes for online-only stores in the coming months.  Also, the online retail segment is getting more competitive. The company has benefitted from the lockdown, but very soon most shops will be open. This might have a negative impact on the revenue growth of the company. The stock also had a good run in the past year. With the rise of valuations, some investors could sell to take profits.  Final view on ASOS shares I like the company for its strong revenue growth and good profits. However, the stock has moved a lot this year. The stock is currently trading at a price-to-earnings ratio of 45 and a price-to-sales ratio of 1.7. In my opinion, the stock is not cheap, also it is a bit more attractive compared to Boohoo. I will wait to buy the stock at a lower price. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading 3 of the best shares to buy as the ISA deadline approaches Royston Roche has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Twitter. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post ASOS shares are rising: here’s what I would like to do appeared first on The Motley Fool UK.
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  34. Is the ASOS share price too low? (08/04/2021 - The Motley Fool UK)
    ASOS (LSE:ASC) delivered record results for the six months to 28 February 2021. Sales rose 24% and the online fashion retailer produced profits of £112.9m versus £30.1m during the same period last year. Overall, ASOS benefited from the pandemic. Despite exceptional results, the ASOS share price showed volatility. The initial 2% gain was as I expected, but the price swiftly declined. There are multiple possible reasons for the short-term reactions in the ASOS share price. It’s possible that after a 42% rise last year and a 19% increase year-to-date, the ASOS share price is in a consolidation phase. In addition, ASOS said it was cautious about the near-term consumer outlook because of uncertain economic prospects for its younger target market. Other risks highlighted the timing of global re-opening and potential further Covid-19 peaks. Customers sending back fewer items while restrictions were in force provided ASOS with a boost, but this is likely to reverse as the economy opens up and customer returns normalise to pre-pandemic levels. Is the ASOS share price too low? Despite these risks, there is much to like about ASOS and reasons to believe the share price could be too low. I’m impressed by its ability to pivot from clothes traditionally bought for going out to more casual clothing suitable for staying in. Its ability to quickly execute this dramatic shift in consumer purchasing habits is remarkable and highlights management competency.   During the lockdown, there was more emphasis on activewear, casual clothing, and beauty products. The strategy was a success. ASOS experienced excellent sales growth, an increase in customer numbers, and profitability. In the UK, growth was exceptionally strong. UK sales showed growth of 39%, versus sales growth of 18% in the EU and 16% in the US. Its active customer base increased by 1.5m over six months, giving a total of 24.9m. I’m not currently an ASOS investor but I am tempted to buy some shares after this update. It offers a double-digit return on capital, favourable growth prospects, and good cash generation. I’m confident it could be a much larger business in three-to-five years and I think the ASOS share price is now too low. Winners and losers of fashion retail The pandemic created winners and losers in fashion retail. Some companies struggled and were forced to sell off much-loved brands. In the coming years, ASOS is likely to be seen as one of the winners, in my opinion. During the period, the company was able to acquire four iconic brands – Topshop, Topman, Miss Selfridge and HIIT. Adding the brands to the ASOS platform seems to have been seamless. Looking forward, ASOS is confident in achieving strong financial returns from these popular brands. Other winners in the sector that stand out include Next and Boohoo. I picked Next as my top FTSE 100 pick recently. One characteristic that the three have in common is their ability to pivot their business when the market changes. This entrepreneurial leadership should drive these companies into becoming larger businesses, and I would happily own them all. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Can the ASOS share price keep rising? Can the ASOS share price continue to climb? ASOS shares are rising: here’s what I would like to do 3 of the best shares to buy as the ISA deadline approaches Harshil Patel owns shares of Boohoo. The Motley Fool UK owns shares of Next. The Motley Fool UK has recommended ASOS and boohoo group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Is the ASOS share price too low? appeared first on The Motley Fool UK.
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  35. Teenager advice (17/05/2021 - Reddit Stock Market)
    Context: 19 years old and plan to slowly keep adding VTI, VOO/VOOG, AAPL and MSFT as my paychecks come in. I can usually buy 1 share every 2 weeks. -3.01 shares VTI -3 shares VOOG -10 shares XOM -5 shares AAPL -2 shares MSFT -15 shares O -10 shares NEE -5 shares STLD Any advice you guys recommend? Part of me thinks O is too conservative and that I should sell and move it into vti/voog, but its my only real estate investment. If you could go back, what advice would you give your 19 year old self? I’m trying to build the best portfolio I can because investing is my ticket to wealth (as it is for most people)   submitted by   /u/that-manss [link]   [comments]
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  36. I’d buy these high-ROCE UK shares (11/06/2021 - The Motley Fool UK)
    To make the best returns I can year after year, I want to invest in easy-to-understand UK shares with high-quality attributes. A shortcut to finding the latter is to focus on a metric known as return on capital employed (ROCE). What is ROCE? ROCE is a financial ratio, used by investors to measure a company’s profitability and the efficiency with which its capital is used. The higher the number the better, as it means management is investing money wisely to create more money. That can be the basis for either a growing dividend or — hopefully — growth, which will be reflected in an increasing share price, all being well. It’s important because it helps show the quality of a company. If a business is buying assets that can’t generate returns, then the share price isn’t going to do well. If it can though, the opposite should be true. As an investor I want to see management investing for growth effectively and spending money to make more money in the future. UK shares with high ROCE Given the importance of ROCE, I set up a screen for companies with a reading above 20 and strong five-year cash flow growth. This simple screen offered up some UK shares I might consider adding to my portfolio. They included iron ore pellet producer Ferrexpo (LSE: FXPO). Also on the list were UK shares such as Sylvania Platinum, Somero Enterprises, Boohoo, Team17 and a number of others. In total, the screen threw up 36 UK shares meeting the criteria. Ferrexpo – a quality UK share? Following this simple exercise, I wanted to take a more in-depth look at Ferrexpo. It should benefit this year from growth in economic activity, especially in emerging markets. Construction and other industries that use steel will push up demand for iron ore, which should in theory push up prices for Ferrexpo. A combination of volume and price increases could really help the top and bottom line. Yet even though the future could be very bright, the P/E is only around four. That’s among the lowest P/E ratios I’ve seen. It makes me think the shares are very cheap, so the valuation is attractive. If I look at Evraz, which is bigger but broadly comparable, then its P/E is around eight. As with any miner though, there are risks, because global markets (not the company) control prices for the product. Any fall, perhaps because a new variant of Covid slows down the global economic recovery, would very likely hit the Ferrexpo share price. The company has in the past had governance issues too, which is off-putting for an investor like me. Its auditors investigated large payments to a charity suspected of being run by the chief executive. Also, its mines are in Ukraine, putting it at risk potentially from any Russian moves in that country. As a miner there are always going to be a fair few risks. That said, the high return on capital employed, combined with a global economic recovery and the cheap valuation of the shares all make tempt to add Ferrexpo to my portfolio. It seems like a high-quality UK share to me.  The post I’d buy these high-ROCE UK shares appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 of the best cheap UK stocks to buy today Andy Ross owns no shares mentioned. The Motley Fool UK has recommended boohoo group and Somero Enterprises, Inc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  37. This new UK share looks set to stride into the FTSE 100. Time to buy? (25/02/2021 - The Motley Fool UK)
    Iconic boot brand Dr Martens (LSE: DOCS) has made a brilliant start to its time as a listed company. The shares are already up nearly 40% from their initial offer price of 370p, leaving the footwear firm with a market-cap approaching £5bn. Not only is this a great return for early holders, it also increases the odds of the company striding into the FTSE 100 when the next reshuffle occurs in March. Given this, should I be rushing to buy the stock? I’m not so sure. FTSE 100 bound? Now, don’t get me wrong. There are lots of things to like about Dr Martens as a company. First and foremost, it makes a lot of money, shifting more than 11 million pairs of shoes annually. In the last financial year to 31 March 2020, the business made £672m in revenues. Whether consumers appreciate DM styling or not, it seems many shoppers are attracted to the quality and durability of its shoes.  Dr Martens is also nicely geographically diversified. Nearly half of sales come from Europe, the Middle East and Africa and a little over a third from the Americas. The remaining revenue is generated from the Asia-Pacific region. This kind of earnings spread isn’t a guarantee of continuing success, of course. However, it should make the company more resilient compared to one that operates solely in one part of the world. The potential for Dr Martens to enter the FTSE 100 should do its share price no harm either. Those funds specialising in tracking the top tier of the market will then be required to buy the stock. This may temporarily boost the company’s valuation even higher.  Even so, I’ve a few nagging concerns. Reasons to be bearish The first of these relates to the competition Dr Martens faces. While the brand is clearly valuable and long-lasting, it’s just one among many. Moreover, its popularity has waxed and waned over the years. Anecdotally, I last bought a pair of boots several years ago and haven’t ever felt the need to ‘upgrade’. As a potential investor, this lack of repeat business would concern me.  I’m also put off by the fact that — variations aside — it remains a ‘one product’ company. By contrast, fast-fashion giant Boohoo now has multiple brands under its belt, no stores to maintain, and is preparing to enter new markets such as beauty and sports. Despite these attractions, Boohoo currently has a lower market capitalisation than Dr Martens!  I also don’t think it would be right to buy a company’s stock solely on its potential to enter the FTSE 100. Truth be told, this promotion might not even happen. At the time of writing, Dr Martens faces stiff competition from the likes of holiday firm TUI, Royal Mail and engineer firm Weir Group for a spot in the top tier. Even if it were to emerge victorious, the huge rise seen in the share price since coming to market may bring forth a bout of profit-taking. Walk on by Dr Martens has had a storming start to its time as a listed company. Notwithstanding this, a lot of promise and good news already looks firmly priced in. As someone who’s wary of frothy-looking valuations and IPO fever in 2021, I’m content to walk on by for now.  One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Dr Martens recently went public, but is its stock a buy? Paul Summers owns shares in boohoo group. The Motley Fool UK has recommended boohoo group and Weir. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post This new UK share looks set to stride into the FTSE 100. Time to buy? appeared first on The Motley Fool UK.
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  38. I’m almost embarrassed to ask this, but... (04/05/2021 - Reddit Stocks)
    If you consistently buy a stock when it dips, and then sell it with profit and repeating that with the same stock throughout a steady increase, would you make more than if you just held? Considering each time one buys back in, they are paying a higher price. For example, let’s say you kept going in and out of one position as shown—- Buy: 100 shares at $10 Sell: 100 shares at $15 Buy: 100 shares at $12 Sell: 100 shares at $16 Buy: 100 shares at $15 Sell: 100 shares at $20 Or is it better to just hold through the dips? It seems like it would be a similar profit either way, but am I missing something?   submitted by   /u/ADHDoll [link]   [comments]
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  39. Should I move my shares? (21/03/2021 - Reddit Stocks)
    I currently have my shares in FTX as Tokenized stocks, I did that because I can instantly deposit funds and buy the tokenized shares compared to my brokerage where it takes 2 days for a deposit, since I had FOMO over a month ago I haven’t had the balls to sell the shares to rebuy in my broker, afraid that it would moon. What do you guys think? Should I keep my tokenized shares or should I move to my broker. The volume for the tokenized shares is around 100. Also the spread is sometimes as big as 7.5%, so it’s pretty dry. Any advice would be welcome.   submitted by   /u/rrbtroll [link]   [comments]
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  40. Abnormal Trade in After Hours - 222,995 Shares (19/03/2021 - Reddit Stocks)
    I was watching the individual trades on the stock we all love to hate and at 14:00:00 PST it shows that there were 222,995 shares sold, which had virtually no movement on the share price. There was one share sold before and after the 222,995 shares traded and that 1 individual share moved the price more than 222,995 shares. The other oddity is that there were also 0 shares sold at the exact same second as the 222,995 shares. Does anybody know what was going on? Unfortunately I'm not able to post pictures here, but there is a screenshot over at that other site...   submitted by   /u/VastCourage9493 [link]   [comments]
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  41. Why I think the FTSE 100 is a good place to start investing in UK stocks (14/02/2021 - The Motley Fool UK)
    I think the FTSE 100 is a good place to start investing in UK stocks, and this is why. Firstly, the UK stock market contains over 500 companies ranging from the best of the best to a poor excuse for a business. The FTSE 100 is the most well-known UK financial index, followed by the FTSE 250. Together they make up the FTSE 350. The top 100 UK listed companies, measured by market capitalization, are in the FTSE 100 and the next 250 in the FTSE 250. Both these indexes contain quality UK stocks that have reached a level of acceptance in society and thus a notable market cap. Of course, that’s not to say there aren’t a few questionable companies in the FTSE 350, but on the whole it’s a fairly good starting point for choosing quality companies to invest in for the long term. The next well-known UK stock index is the FTSE AIM All-Share. It has a few popular companies, such as ASOS, Boohoo, and Fevertree Drinks, but it also contains a raft of penny shares that are best avoided by the novice investor for their high levels of risk. Using a checklist to start investing I think the key to successful investing is choosing businesses that offer value to both shareholders and consumers. That way they’re more likely to be successful far into the future. When I’m looking for stocks to invest in, here are a few things I consider: A competent team at the helm, operating with integrity. I like to understand the business and where it stands in the current and future economic environment. I look for a business with an edge on its competition. A dividend is a nice bonus, if it doesn’t detract from the strength of the balance sheet. Competent team Billionaire investor Warren Buffett is a good example to look to when planning a long-term investing strategy. He’s been in the game for several decades, and his phenomenal wealth paints a picture of success. While Buffet himself gets the credit for his company, Berkshire Hathaway’s wins, it’s not just him behind its success. His colleague and good friend, Charlie Munger, is also a major cog in the wheel. Their investing wingmen, Todd Combs and Ted Weschler, are very good at their jobs too. The integrity at the top goes a long way to instilling investor faith and keeping shareholders on board. Understanding UK stocks It’s easy to get caught up in the hype surrounding a new or exciting-looking business. But I think it’s important to take the time to understand the businesses I’m investing in. I want to hold my investments for the long term and for that reason I want to be sure I’m investing in something that’s going to outpace the competition and bring me decent shareholder returns. Another of Buffett’s nuggets of wisdom is to invest in a business you understand. He really understands the insurance industry, and it’s become one of his most lucrative investments. I think the FTSE 100 is a good place to start when choosing the best shares to buy now because it offers established companies with a global reach. Several of these are household names that tick the boxes on my list.  For regular stock market investing ideas and help with choosing the best UK shares to buy now, sign up to The Motley Fool today. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading I’d buy this UK share in my Stocks and Shares ISA for a long economic downturn Stock investing: 2 of the best FTSE 100 shares I’d buy right now This UK share is up 1,900% in 5 years: why I’d still buy it today Stock investing: 5 UK shares to buy today The Rolls-Royce share price is down 66% this year. Here’s what I’d do now Kirsteen has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Berkshire Hathaway (B shares). The Motley Fool UK has recommended ASOS, boohoo group, and Fevertree Drinks and recommends the following options: short January 2023 $200 puts on Berkshire Hathaway (B shares), short March 2021 $225 calls on Berkshire Hathaway (B shares), and long January 2023 $200 calls on Berkshire Hathaway (B shares). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think the FTSE 100 is a good place to start investing in UK stocks appeared first on The Motley Fool UK.
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  42. My aphria shares have not transferred to tilray yet. (07/05/2021 - Reddit Stocks)
    I own/owned ahpria shares and I know the whole transfer ratio and what not. Just wondering if my broker is slow. Have shares transferred yet? Does it take a couple days. My aphria shares still show on my account but with an asterisk that says this stock no longer listed, or something like that. I had the tsx listed shares, if that makes a difference.   submitted by   /u/frech77 [link]   [comments]
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  43. Finding lost shares (20/03/2021 - Reddit Stocks)
    I am positive that I own some shares in Groupon, but when I check with both the sites I buy through they aren’t there. I bought these shares years and years ago and fear that I’ve forgotten where I purchased them. Is there a way for me to figure out how to get access to these shares again?   submitted by   /u/grywht [link]   [comments]
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  44. At what point should you sell your stock shares? Help (09/05/2021 - Reddit Stocks)
    So I’m very new to investing. VERY NEW. Let’s say I buy 50 shares of Stock A for $100. If overtime, 20 shares have now made me $100, should I take out those 20 and keep 30 shares and let them keep growing? But then I think, ok if I’m trying to make a profit shouldn’t I take out 30 or 40 shares? Or should I not take out any and hold them forever? This is a dilemma I’m coming across that I don’t understand. Ppl say to hold for years and just let your investment grow. But at what point do I actually cash out the investment and reap the profits? To me I’m seeing it as having a lot of money but also not much at all. I could have 100k invested but if I never take it out and actually spend it, it’s like having no money at all. But I also don’t want to sell the shares that are making me money. Ughh I’m so confused. It will help if you tell me personally for you, at what point do you sell shares?   submitted by   /u/EternalBlaze18 [link]   [comments]
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  45. How to close out only margin portion of position? (05/04/2021 - Reddit Stocks)
    So I have about 1200 shares of a security and 200 shares of that are on margin. Im looking to close out only the margin portion of my shares, and can't quite see how to do that? Now the 200 shares on margin were purchased after the initial 1000 shares. So I guess I can choose to close out 200 shares as last in first out.. that would work right? I would imagine the tax would be the same as in looking to fully close out this position in 1 to 2 months anyways, so its a short term gain regardless no matter how I close out.   submitted by   /u/KingSnes21 [link]   [comments]
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  46. Selling large number of shares question (09/06/2021 - Reddit Stocks)
    Hypothetically, if I had 10k shares of a stock and wanted to sell all of them. If I sold all 10k in one order, how would that work? Would it wait to be executed until someone bought 10k shares or more? Or would it queue buyers until it reached 10k shares? So I'm assuming it would be a longer wait time than if I was only selling 100 shares. Would it be better, (execute faster) if I sold in smaller increments?   submitted by   /u/realpawel [link]   [comments]
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  47. Which if any is the better play in this situation ? (08/02/2021 - Reddit Stock Market)
    I recently read about Caesar’s Entertainment planning to acquire WilliamHill in the second half of 2021, with WilliamHills troubles in the UK and the rise of sports betting in America I believe it would be a good investment to buy before the merge. I am unsure however to which is the better play, do I buy shares in WilliamHill before they’re taken over since they’re shares are relatively cheaper at the moment or do I buy shares in Ceasar’s ? I don’t know if the shares in WMH will be replaced with cash or transferred to CZR shares. What would be the better option between the two ?   submitted by   /u/EyeofEA [link]   [comments]
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  48. Why does the amount of issued shares matter if it's possible to trade fractional shares? (18/03/2021 - Reddit Stocks)
    So correct me if I'm wrong, but I've understood that some brokerages allow trading of fractional shares, but doesn't that make the # of shares irrelevant? I'm new to this, so it may be a dumb question, but one can only get wiser by questioning. ​ Thanks!   submitted by   /u/Daniel01m [link]   [comments]
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  49. $TLRY -> $APHA = $TLRY + ~30% (10/02/2021 - Reddit Stocks)
    Am I correct in understanding, that with $TLRY and $APHA merging Q2 that I could (theoretically) sell my 4 shares of $TLRY and buy ~7 shares of $APHA that those $APHA shares would be converted to 0.8381 shares of $TLRY or ~6 shares. A hypothetical increase of ~30%? Or am i totally reading too much into this, or is this weed is better than i thought?   submitted by   /u/canna_fodder [link]   [comments]
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