Good morning, it's Paul here with the SCVR for Friday.

Timings - TBC

Sorry I didn't manage to finish off yesterday's SCVR, I seem to feel permanently exhausted at the moment. Maybe I'll ask Jack to give me a day or two off next week?

The big news today is;

Boohoo (LON:BOO)

358p (up 10%) - mkt cap £4.4bn

(I hold)

Why is this fashion eCommerce business in a small caps report, newbies might ask? We've followed this share very closely since it floated, because I knew the original wholesaling business from my former employer being a major customer of theirs in the 1990s. Hence the potential of selling direct to the end customer was obvious to me. I, and many readers here, collectively made many £millions from the point where I was raving about it at c.25p per share, all the way up (although I personally sold out ridiculously early, worried about the valuation being too high!). I still haven't learned the lesson to ignore valuation when you find something exceptionally good. Right or wrong, that strategy of ignoring valuation is the one that has worked in recent years. Sooner or later it's likely to go disastrously wrong, but who knows when?

Back to BooHoo. There have been repeated allegations of malpractice (poor working conditions & low pay) in its Leicester supply chain, which combined with a duff shorting dossier from Shadowfall (Matt Earl), has caused the share price to be volatile. I was waiting for a nice buying opportunity in BOO, as I've become more & more convinced of the bull case, as it hoovers up more & more brand names on the cheap, and repeats the same formula to build them up strongly as internet-only businesses, using the BOO infrastructure. That opportunity came in July 2020, with repeated (essentially the same as before) allegations that BOO's suppliers (NB not BOO itself, as all manufacturing is outsourced) were cutting corners, not just with the fabric! I know a lot of readers joined me, buying recently from 209p upwards, and we've cleaned up. So well done to everyone who had the nerve to buy when the share had just been in freefall. And many thanks to the shorters, and so-called ethical funds selling out cheaply, for providing us with this marvellous opportunity.

The independent report commissioned by BOO from a lawyer, was I thought due to…

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