Boohoo Group (BOO) has notably been adding to its fashion empire, buying up Oasis and Warehouse. It’s strategy, along with boohoo.com sales soaring in lockdown, have chimed with investors and it tops our share price and earnings upgrade momentum screen for the Aim market.
- The company also exercised its right to buy the remainder of subsidiary PrettyLittleThing last month, not long after its accounting treatment of cash generated by that business had been cited in a short-selling attack by ShadowFall Research. The episode should serve as a reminder that positive data in screens can be blind-sided sometimes. But, with every test passed this month, our model reflects strong sentiment that Boohoo could be a sector winner when the economy recovers.
- Other Aim companies scoring well still include precious metal miners, with Pan African Resources (PAF) again getting full marks on the screen.
- On the main market, there are thin pickings, but this is a screen that will be well worth watching for strong recovery plays once a sense of positivity on earnings growth returns.
