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I like to consult with him boohoo.com (LSE: BOO) share price from time to time.
Maybe it's like a car accident, but I can't resist seeing how much money I've lost over the past few years. On the other hand, I have the nagging feeling that one day it might take off again without me.
And looking now, I think maybe it's just begun. So far in December 2023, the price is up 20%!
Seasonal publication?
I wonder if people are looking at stocks like boohoo in the run up to the Christmas holidays.
I see ASOS Shares also rose in December. AND Marks and Spencer has continued its strong streak, more than doubling in the last 12 months.
The last update we had from boohoo was not the kind of thing you would expect to start a new bull run. Revenue in the first half of the year fell again and the company posted a pre-tax loss.
To be fair, not much was expected yet, as the company is still working on its recovery plans. And chief executive John Lyttle said: “During the first half of the year we have made substantial progress on key projects and initiatives.“.
Attractive prospects?
The board estimates it should post between £58m and £70m in EBITDA for the full year. But the forecasts do not seem to have changed much in recent months.
The analyst consensus still seems to be in the middle between buying and selling. And they still expect to see losses per share until at least 2026.
So it seems to me that we're seeing a shift in sentiment right now. But it could be justified.
Some love for retail stocks?
After all, investors don't seem to have fully gotten used to retail business yet, although they might be starting to do so.
Inflation has kept many of us from shopping, but it is declining.
And despite Bank of England Governor Andrew Bailey's stern line, almost everyone expects interest rates to fall in 2024. Perhaps not too late in the year.
meaning
So what does all this mean to me?
Well, I still see a lot of uncertainty here. I can't really calculate any kind of valuation for Boohoo shares at the moment.
And I don't see the need to risk money on companies that probably won't be profitable for a few years.
Not when there are so many today who are raking in money and paying good dividends, while their stocks are cheap.
Buy growth stocks?
The Boohoo shares I bought have dwindled to almost nothing of value now. I don't buy growth stocks very often, and I've noticed that Boohoo went down like one that went wrong and kept going.
But for growth investors with a long-term perspective? I think this might be a good time to enter.
Friends, remember: actions are for life, not just for Christmas.
