Shares in Care REIT (LSE:CRT) are currently trading 32% below the firm’s net asset value (NAV). And the stock has an 8.5% dividend yield for passive income investors at the moment.

It’s real estate investment trust (REIT) in a sector that I think looks highly promising and there’s a lot to like about the underlying business. As a result, I’m adding it to my list of stocks to keep an eye on.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Care homes

Despite a brief interruption during the pandemic, people in the UK tend to be living longer. As a result, I expect long-term demand for care homes to be strong. 

Care REIT isn’t the largest operator in the sector – that’s Target Healthcare REIT. But it owns a portfolio of 140 properties (mostly care homes) that it leases to providers. 

The majority of its tenants are local authorities, which make up around 58% of its income. The rest are a mixture of private organisations (31%), and the NHS (11%).

All of this looks encouraging and in its most recent update, Care REIT stated its NAV to be 118.74p per share. So with the stock trading at around 81p, I’m interested in a closer look.

Key metrics

There are several key metrics I look at in a REIT. On the operational side, I’m interested first and foremost in the company’s ability to attract tenants and collect rental income from them.

Care REIT’s occupancy level is around 89%. That’s good, rather than great, but the thing that really stands out to me is the amount of time left on its current leases.

The average lease expires 20 years from now, which is exceptionally long. And with rent increases linked to inflation, this could be a sign of a long-term passive income opportunity. 

The other metric I look at is rent collection. While local authority budgets might be under pressure, Care REIT regularly collects 100% of its expected rent – can’t say fairer than that.

Financing

REITs have to distribute 90% of their rental income to investors as dividends. This makes them interesting passive income opportunities, but it can also create complications. 

Being unable to retain earnings means REITs often have a lot of debt on their balance sheets. And investors need to pay attention to how the company manages this. 

At the moment, Care REIT has an average cost of debt of around 4.68%. And a lot of it doesn’t expire until 2035, giving the company a lot of time to plan and prepare.

Around 30%, however, is set to mature in 2026. So if rates don’t come down, the firm might find itself paying out more in interest costs, which could cut into profits – and dividends. 

On my radar

The question for investors is whether a 32% discount to NAV and an 8.5% dividend yield is enough to offset this risk. I think it might well be. 

If Care REIT pays off its 2026 debt by issuing equity, that would increase the share count by 22%. Other things being equal, that would bring the dividend yield down to 6.8%.

While the debt issue shouldn’t be discounted, I also see shares in Care REIT as good value at the moment. It’s going on my list of stocks to keep an eye on next time I’m looking to invest.

The value of stocks is typically dictated by the earnings forecast. This is how much profit per share analysts believe the company will make. Some stocks are covered by 50 or more analysts while others, like British small-caps, are often only covered by one or two.

Likewise, this US stock, DXP Enterprises (NASDAQ:DXPE), is only covered by one analyst, and this analyst is vastly underestimating its performance, according to data published online.

What’s more, over the last month, this stock’s been massively sold off despite a huge earnings beat. It’s nothing to do with the company, but Donald Trump’s economic and trade policies which have caused a sell-off in US stocks coupled with concerns about frothy valuations in the artificial intelligence (AI) segment.

A closer look at the figures

According to the one analyst covering DXP Enterprises — a lead provider of maintenance, repair and overhaul products — the stock’s currently trading at 18.5 times forward earnings and 17.4 times earnings from the past 12 months. This actually suggests earnings are going in reverse.

However, the reality is anything but this. Simply, the analyst hasn’t revisited its forecast since the recent earnings blowout. In Q4, the company delivered earnings per share (EPS) of $1.38 — $0.49 ahead of the estimate. This was up from $1.12 a year ago.

In short, recent quarterly earnings suggest that the current forecast is vastly under appreciating the company’s growth trajectory. In fact, the current earnings forecast suggests that earnings will decline by 25% in the second half of 2025 — that’s just not going to happen.

Personally, I’m forecasting EPS of $5.50 for 2025. I believe that’s a conservative estimate assuming the performance from the past two quarters can be sustained throughout 2025. And at the current share price, this would give us a price-to-earnings (P/E) ratio of just 14.1 times.

What’s driving growth?

DXP Enterprises’ impressive growth trajectory’s being driven by a combination of strategic acquisitions, strong project activity, and a focus on high-margin markets. The company’s Innovative Pumping Solutions (IPS) segment has been a standout, with revenue surging 47.7% in 2024, fuelled by robust demand in energy and water/wastewater projects. The backlog for these sectors remains elevated, supporting sustained revenue growth.

Meanwhile, the Supply Chain Services (SCS) segment, though flat in 2024, is expected to benefit from new customer accounts and enhanced technology-driven strategies. And finally, the Service Centres segment, which accounts for the majority of revenue, grew around 9% over the year, with growth in diversified end markets like safety services and metalworking.

The bottom line and a caveat

Starting with the caveat first. It’s debt. The company, with a market-cap of $1.2bn, currently has total debt worth $676.3m and $148.3m of cash. It’s not a huge net debt position, but it needs to be taken into account as investors assess the valuation proposition and as we assess how easy that debt is to service.

However, DXP meets several of the criteria for Peter Lynch’s (an incredibly successful American investor and fund manager) Perfect Stock, combining strong growth, an understandable business model and attractive fundamentals.

I’ve recently added this one to my portfolio, and it’s been a wild ride as I’m back where I started. Around $80 a share, this could be an incredible opportunity to consider.

For the last two-and-a-bit years, the Nasdaq Composite has been a great hunting ground for investors seeking stocks to buy. By mid-February, the tech-driven index had skyrocketed 94% within that period!

However, it ended last Thursday (6 March) at 18,069 points. This meant it had fallen more than 10% since December, officially putting it in correction territory.

Nobody knows where things will head next, but history suggests that buying high-quality Nasdaq stocks on previous dips has been a winning strategy for long-term investors.

Here are two shares I think are worth considering.

MercadoLibre

The first is MercadoLibre (NASDAQ: MELI). This is the Amazon/PayPal of Latin America, operating across 18 countries. As well as running the region’s largest e-commerce marketplace, it has fast-growing fintech and advertising businesses, as well as an Amazon Prime-like subscription service.

In 2024, the company’s revenue soared 38% year on year to $21bn, while net profit almost doubled to $1.9bn. 

The stock isn’t cheap at 5 times sales and 43 times forward earnings. MercadoLibre will have to keep growing quickly to justify its valuation, while also fending off competition from cheap Chinese shopping apps. These are risks to consider.

According to management though, Latin America’s still a decade behind the US in terms of e-commerce penetration. And MercadoLibre aims to grow its annual users from 100m today to 300m over the long run.

These figures highlight the significant opportunity ahead. The share price is down 11.1% since February, offering a potential dip-buying opportunity to research.

Alphabet

Next up is Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). As the ticker symbols indicate, this is the parent company of Google and everything that entails (Google Search, Google Cloud, YouTube, Android, etc).

At $175, the share price is 15.4% lower than it was just a month ago. This puts the tech stock’s forward price-to-earnings (P/E) ratio at a cheap-looking 19 times. That’s way lower other ‘Magnificent Seven’ tech stocks and the wider Nasdaq index.

Why are the shares cheap? I think there are a couple of key concerns here. First, the US Department of Justice is pushing to break up Google. Accusing it of being a monopoly, it wants the tech giant to sell its web browser, Google Chrome and, potentially, Android. So this uncertainty’s hanging over the stock.

Another risk is that the majority of Alphabet’s profits stem from digital advertising on Google and YouTube. There’s rising concern that the US might dip into a recession. If so, this could impact Alphabet’s profits for a couple of quarters.

In my eyes though, the long-term positives outweigh the risks here. Analysts see the company growing revenue to around $480bn in 2027, up from $350bn last year. Earnings are also expected to grow double digits, giving a forward P/E multiple of just 15 for 2027.

Meanwhile, Alphabet’s robotaxi subsidiary, Waymo, carried out more than 4m driverless taxi rides last year. It plans to expand globally over the next decade, potentially disrupting traditional taxi services by replacing human drivers with autonomous vehicles.

Finally, Google’s a leader in the emerging field of quantum computing. Its new quantum chip, Willow, has achieved advances in quantum error correction, completing in under five minutes a computation that would take existing supercomputers 10 septillion years to complete.

The idea of generating passive income obviously appeals to most people. That’s why there are a fair few ways of achieving it these days.

One tried-and-tested method is to buy company shares that pay dividends. In the UK, this can easily be done – tax-free – inside a Stocks and Shares ISA. 

To demonstrate, let’s assume someone wants to aim for seven grand a year in passive income. How much would they need to achieve this? Let’s find out. 

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Taking a long-term view

The level of income generated will ultimately depend on the yield of the investor’s portfolio. I have four dividend stocks that yield above 5%. The average for this quartet’s currently 7.4%.

	Dividend yield*
Legal & General	8.8%
British American Tobacco	7.8%
Aviva	7%
HSBC	5.9%

However, I have a dozen other stocks that yield 2-4%, meaning the overall portfolio yield’s lower. Based on a 6% yield then, an investor would need just under £117,000 to generate the required £7k a year.

While that sum might initially seem unachievable, it can be worked towards with modest regular outlays. For example, investing £500 a month and achieving a 7% return would reach that figure after 12.5 years. £650 a month with an 8% return? That comes down to just 10 years.

Now, it’s worth stating that returns are impossible to predict accurately. But 7-8%’s roughly in line with the long-term average of UK stocks. So it’s definitely achievable.

Ultra-high yield

Turning again to Legal & General (LSE: LGEN), the highest-yielding stock above, I think it’s worth considering as part of a diversified income portfolio.

The FTSE 100 company has a long history and strong brand in insurance and pensions markets. At the end of 2024, it managed over £1trn in assets!

The group’s done a tremendous job of increasing payouts over a long period. However, analysts are forecasting a 2% rise in the payout for 2025 and 2026. That’s lower than the 5% increases that shareholders have been receiving on average over the past few years.

But another way that companies can reward shareholders is through share buybacks. These tend to boost financial metrics like earnings per share (EPS), as they are divided among fewer shares, meaning each one gets a bigger slice of the earnings.

The company completed a £200m buyback in November, but now expects to return an additional £1bn through buybacks following the £1.8bn sale of its US protection business. This sale to Japan’s Meiji Yasuda is expected to be completed towards the end of 2025.

Another possibility is that this sizeable buyback could give the share price a boost, though that isn’t guaranteed.

As for risks, demand for Legal & General’s products – and therefore profits – could decline if economic conditions deteriorate. Additionally, its large asset management division’s exposed to market downturns, making earnings volatile. 

Longer term though, I think the financial services group will continue pumping out high-yield dividends. It should also have plenty of business opportunities as the UK’s population continues to rapidly age.

A nice spread of stocks

Finally, it’s worth remembering that no individual dividend’s guaranteed. So it’s necessary to construct a diversified portfolio of high-quality passive income stocks. 

As mentioned, my portfolio has over a dozen shares that distribute dividends. This mix cushions the blow if any one doesn’t pay out. 

Having just turned 32, I’ve been running a few thought experiments about how much money I could have at retirement age if I continue contributing to the my Stocks and Shares ISA. In short, consistent contributions and the power of compounding could make me a very wealthy individual in 30 years time. I’ve just got to stick with the plan. The same goes for any investor.

Compounding is the key

Compounding is the process where your investment earns returns, and those returns generate their own returns over time. This snowball effect accelerates wealth growth, especially over long periods. What’s more, if I’m investing through a ISA, my investments can grow without the taxman taking a cut. For example, if you invest £1,000 monthly at an average annual return of 10%, the investment could grow to approximately £2.3m by age 62. This calculation assumes consistent monthly contributions and reinvestment of returns. Not that a 10% return is guaranteed, of course, and investments can lose money as well as making it.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Diversification is important

Diversification is a cornerstone of investing, spreading risk across various assets to reduce the impact of any single investment’s poor performance. For novice investors, choosing investments can be daunting and many will favour index trackers. Tracker funds, such as those linked to a specific index, offer broad market exposure by mirroring a benchmark like the FTSE 100.

This passive approach is low-cost, simple, and ideal for those who prefer a hands-off strategy with steady growth. Alternatively, investing in singular stocks allows for targeted bets on specific companies, potentially yielding higher returns. However, this requires thorough research and a higher risk tolerance. Both approaches have merits, and the choice depends on the investor’s time, expertise, and comfort with risk.

One for consideration

Scottish Mortgage Investment Trust (LSE:SMT), managed by Baillie Gifford, is one option for investors seeking exposure to disruptive, high-growth companies. The Trust’s strategy focuses on businesses harnessing technological change, with a portfolio that includes both listed and private companies.

Notable private holdings like SpaceX, Bytedance, and Stripe offer unique opportunities often inaccessible to individual investors. Historically, Scottish Mortgage has backed industry giants such as Amazon, and Google at early stages, delivering significant returns. Over the past decade, the trust’s Net Asset Value (NAV) per share — the value of the company’s investments — has surged by 381.9%, outperforming the FTSE All-World index’s 218.2% gain.

However, the trust’s significant exposure to immature, high-risk companies introduces volatility. For instance, while Nvidia has been a stellar performer, other holdings like Northvolt have struggled. Additionally, the use of debt/leverage amplifies both gains and losses, making the trust particularly adventurous.

Nonetheless, Scottish Mortgage’s low-cost structure and long-term perspective make it a good choice for investors aligned with its growth-driven philosophy to consider. Yet it’s best suited as part of a diversified portfolio, given its susceptibility to market sentiment swings.

For those comfortable with short-term volatility and seeking substantial long-term returns, Scottish Mortgage is one for further research, I believe. However, the inherent risks, including potential significant losses during market downturns, should not be overlooked. Investors must weigh these risks against the potential rewards before committing capital.

Personally, it’s a stock I hold, and may buy more of in the current unpredictable environment.

Just six months into my investing journey, the Covid stock market crash occurred. Seeing a sea of red was undoubtedly a huge baptism of fire for me. But when I reflect five years on, these are some of my most important takeaways.

When to pull the trigger

One of the biggest mistakes I made was to start deploying capital into the market way too early. In late February 2020, as an unknown virus started spreading across the globe, the FTSE 100 started selling off.

Unlike money managers, individual investors don’t generally have huge sums of cash on the sidelines ready to deploy. As a result of my impetuosity, when the big bargains came, I had run out of dry powder.

Time in the market beats timing the market they say. But that shouldn’t be taken absolutely literally.

What is important for any investor to do is to assess a new event before rushing to buy. I have deployed that lesson ever since.

In the recent sell-off of Nvidia, private investors ran headlong  into buying the dip immediately after is began to fall. I didn’t. For me, it’s simply way too early to assess what impact DeepSeek could have on its future revenues.

Never fish for the bottom

The FTSE 100 bottomed in late March 2020 and slowly started climbing after that. But there were still huge bargains to be had for a long while. Yet I made the classic mistake of beginning to accumulate cash and didn’t invest any of it.

But then how did I know that March was the bottom? The answer is simple. I didn’t. But this is when psychology comes in.

For example, Aviva bottomed out along with the index in late March at 205p. I had months to buy for less than 300p, and didn’t move. Why? Because having seen that bottom, I thought I’d wait for it to fall again. But it never happened.

Not all stocks bottom in tandem

Individual stock pickers don’t care what the index is doing. Although most of the FTSE 100 constituents hit their lows around the same time, there were a number of outliers. Four huge ones in particular: BP, Shell, HSBC and Rolls-Royce (LSE: RR.)

Each one had their own particular unique reason for not mirroring the index. But my biggest mistake and biggest regret was missing the opportunity of a lifetime presented by Rolls-Royce.

When a stock is falling off a cliff like Rolls Royce did way after the index had bottomed, I dithered. I researched the stock to the nth degree. But each time I made the decision to buy, it would fall another 10% in a day.

I saw the bottom at 100p (33p after the rights issue) and said to myself I will wait for 80p. One week later the stock had doubled in price. The bottom was in. But just like Aviva, I made the same mistake.

The lesson I learnt? If you have researched a stock and have made the decision to buy, then don’t hesitate. Its much easier to add to a stock you have bought into, than to make the initial leap.

I have applied this methodology countless time since. The most recent example was following the huge sell-off in Burberry last year.

Shares of Scottish Mortgage Investment Trust (LSE: SMT) have slipped beneath £10 in recent days. Disappointingly, this has reversed most of the gains the growth-focused FTSE 100 trust had achieved in 2025.

As a shareholder though, it’s best to avoid worrying about these short-term movements and focus on the growth opportunities ahead. Admittedly, this can be difficult. But it’s portfolio decisions that will ultimately drive long-term returns (or not).

With this in mind, here are three insights that shareholders learned from a Scottish Mortgage investor webinar in February.

Buybacks

A year ago, the trust announced it would buy back at least £1bn worth of its own shares. The goal was to reduce the significant 14.5% discount between the trust’s share price and its net asset value (NAV) per share.

According to fund manager Tom Slater during the webinar, Scottish Mortgage had so far bought back £1.6bn worth of shares. This has reduced the discount to around 8.5%. He said: “I think we’ve made some progress. I don’t think we are yet where we want to be.”

The risk here is that the discount widens again, forcing investors to question whether capital might best be deployed into stocks instead.

Moreover, President Trump’s tariffs are driving massive uncertainty. This issue has the potential to trigger a further market sell-off, reducing the value of Scottish Mortgage’s holdings in the process.

Naturally, there will always be such investor worries. In 2020, it was Covid. In 2025, it is Trump’s tariffs. In 2030, it will be something else.

Nvidia

Next, we had more commentary on the decision to reduce the holding in artificial intelligence (AI) chip leader Nvidia. Basically, the managers couldn’t envisage Nvidia increasing “several multiples” from a $3trn valuation.

Plus, they point out that AI costs are moving from training, where Nvidia’s chips dominate, to inference, where there could be much more competition.  

Manager Lawrence Burns said: “We’re reducing Nvidia because we don’t think they can continue to take the same level of supernormal profits out of the ecosystem.”

Tesla and SpaceX

Finally, the managers were inevitably asked about Tesla. Slater confirmed that the trust had made “some very significant reductions to Tesla through the past few months“. It’s now less than 1% of the portfolio.

This is a big turnaround, as the electric vehicle (EV) pioneer had once been the largest holding. However, Tesla stock had been surging after the US election without any real improvements in company fundamentals. In hindsight, taking chips off the table was a smart move.

For SpaceX though (also run by Elon Musk and now the largest holding), the calculus is different. The rocket pioneer is making fundamental progress after successfully completing 134 trips to orbit last year (more than half of all global launches!).

Meanwhile, its Starlink internet service has around 7,000 satellites in orbit and 5m users, ranging from airlines to camper van owners. It’s also vital to Ukraine’s attempts to repel Russia’s invasion.

Scottish Mortgage first invested in SpaceX in 2018 when it was valued at $31bn. Today, it’s worth $350bn, meaning it’s already a 10-bagger. While rocket explosions are an ever-present risk, SpaceX has enormous growth opportunities in Starlink, lunar exploration, and space tourism.

At 978p today, I think Scottish Mortgage shares are worth considering.

Greggs (LSE:GRG) shares have plummeted from their peaks in September. Down approximately 40%, the stock is among the worst performers on the FTSE 250. However, looking over 15 years, Greggs stock is up 335%. As such, a £10,000 investment then would now be worth £43,500. That’s clearly a decent return. For comparison, the average annual return for the stock market is typically around 7-10%. So Greggs’ performance is well above that average.

This kind of growth often suggests the company has consistently performed well, either through solid management, innovation, or taking advantage of market trends. If we look at the trajectory over the last 15 years, its business model has evolved. Innovations like the expansion of vegan and healthier menu options and its successful adaptation to consumer trends and preferences have been key.

A recipe for success

Over this long period, Greggs has demonstrated resilience and strategic foresight, particularly through its shift from a traditional bakery model to a food-on-the-go business. This transformation has driven significant revenue growth. Store earnings increased by 300% over the past decade, and the number of stores expanded from 1,487 in 2010 to more than 2,500 today.

The company’s strong financial health, marked by zero debt and consistent cash flow, has allowed it to fund its expansion without relying on external financing. This self-sustaining growth model has not only bolstered investor confidence but also positioned Greggs as a robust player in the fast-food industry. This draws comparisons to giants like Coca-Cola rather than traditional fast-food chains.

I have concerns

Some investors will likely see Greggs shares at the new lower share price and be interested. However, I’d suggest caution might be the best approach.

Firstly, sales growth is really slowing. Like-for-like sales in company-managed shops increased by just 1.7% year on year in the first nine weeks of 2025. This compounds the Q4 data in which we saw like-for-like sales grow by 2.5%.

This slowdown is compounded by rising costs, including the National Living Wage increase to £12.50 per hour. This is likely to pressure margins despite Greggs’ efforts to maintain “value leadership” through price stability. Additionally, rising National Insurance Contributions and high energy costs further complicate the company’s ability to sustain earnings growth.

In addition, I’m concerned that Greggs’ UK-focused model also faces saturation risks and intensifying competition from supermarkets’ meal deals. While the company thrived during austerity and the pandemic, it now struggles to maintain momentum.

Moreover, there’s a growing consumer trend towards healthier alternatives, which contrasts sharply with Greggs’ traditional offerings of pastries and baked goods. Although the company has introduced healthier options like pasta pots and salads, overcoming its historical association with less healthy food remains a challenge.

I’m in the minority

While I’m bearish on Greggs, or at least believe there are better investments elsewhere, institutional analysts broadly back the stock with seven Buy ratings, two Outperforms, two Holds, and two Sells. I could be wrong of course, and the company’s future could continue to be as bright as its recent past. Nonetheless, at 18.3 times forward earnings and a price-to-earnings-to-growth (PEG) ratio of 2.5, I believe the stock is overvalued. Dividend-adjusted metrics also suggest the stock is trading too high.

Passive income can be derived from a variety of investment ideas. However, one of the most popular ways is via buying dividend shares.

Although some stocks only pay out cash on an annual or semi-annual basis, there are some options that provide monthly payments. As a result, the accumulation and compounding benefit of this can swiftly boost an investor’s portfolio.

Details of the business

One example of a company with regular income is the TwentyFour Select Monthly Income Fund (LSE:SMIF). The stock’s up 6.6% over the past year, and has a dividend yield of 8.46%. As the name suggests, the dividends get paid monthly.

Before we dive into more details about the income, let’s understand more about what the fund does. As part of investor information, it aims to “take advantage of the premium returns available from less liquid instruments across the debt spectrum“.

In easier-to-understand terms, it buys corporate bonds, asset-backed securities and other similar products. In return for buying these types of loans and debt, it gets paid a return as interest. Given that it focuses on slightly more risky types of debt, it gets paid a premium rate of interest.

This is good for an income investor, as the yield’s well above the average for the FTSE 100 and FTSE 250. It’s also reassuring that the share price had gained over the past year. Sometimes, a high yield’s only elevated because the share price is falling. This isn’t sustainable for income in the future.

Noting risky assets

Of course, with a yield this high, there are risks involved. The main one comes from the potential for loan defaults from the portfolio. As the fund buys risky assets, the higher rate of interest compensates for the higher potential for a company not paying back the debt. The latest market update from January flagged up higher volatility in asset prices due to President Trump. This potentially poses issues going forward which need to be managed carefully.

Fortunately, defaults haven’t been large in the history of the fund from the information I can see. Yet it only takes a couple of companies to have serious financial problems to have a negative impact on the fund, and therefore the share price.

Income potential

If an investor put £7k in the stock today, they’d stand to get paid some cash fairly imminently. Yet if this income was reinvested, it could allow the overall investment to compound faster. Even without putting anymore fresh capital in, after a decade, the value of the investment could be worth £16,263. In theory, the following year this would equate to a monthly payment of £119.17.

Granted, planning this far out is difficult. These are just assumptions and forecasts that can change. But the benefit of an investor including a monthly income stock can be high, and therefore worthy of consideration.

Investors have lost a lot of money betting that Boohoo (LSE: BOO) shares will swing back into fashion.

They’ve ended up catching a brutal falling knife, down 90% in five years and 18% over the last 12 months. 

That still hasn’t quelled interest in the stock, both from individual investors and marauding rivals. Hope springs eternal, I suppose.

Boohoo was once the darling of the fast-fashion world, wowing online shoppers with its popular clothes, zappy marketing and rapid delivery model.

Can this stock ever recover?

But it’s a competitive, fast moving scene, fraught with risk as investors have discovered. Questionable supply chain practices, ethical concerns over fast fashion, the wider cost-of-living crisis and growing customer returns eroded profits and hammered the shares. Then Chinese rival Shein popped up, with deeper pockets.

Worse, early success had gone to management’s heads with Boohoo heir Umar Kamani throwing a celebrity-packed £20m wedding on the Côte d’Azur in May, then axing 1,000 staff days later. 

Plans to hand £1m each in performance bonuses to CEO John Lyttle and co-founders Mahmud Kamani and Carol Kane were blocked by furious shareholders. They deemed plunging sales, shrinking cash flows and rocketing debt unworthy of such largesse.

Last September’s closure of a supposedly game-chasing £80m US distribution centre in Elizabethtown, Pennsylvania, may have saved money but only added to the sense of disarray.

Interim results published on 13 November showed a 15% drop in revenues to £620m, with youth brands including PrettyLittleThing struggling amid weak consumer activity and external pressures.

There were bright spots, with revenues climbing at Karen Millen and Debenhams Marketplace. Boohoo also secured a new £222m debt refinancing agreement.

All that and Mike Ashley too!

Enter Mike Ashley. His Frasers Group vehicle holds a substantial stake in Boohoo, and isn’t impressed. So far, Boohoo has resisted attempts to give Ashley a directorship, citing competition concerns. The battle will no doubt continue.

There was some excitement in January, when it emerged that Carol Kane had put £99,000 of her own money into Boohoo shares (twice!), with new CEO Dan Finley investing a similar sum in December. Did they know something we didn’t?

It hasn’t worked out well for them in practice. The Boohoo share price is down 22% in the last three months. That would have turned £100,000 in £78,000, a loss of £22,000. So is there any hope of a turnaround, ever?

The six analysts offering one-year share price forecasts have produced a median target of 30p. That’s an increase of 9% from today. Given recent chaos, that would have to be deemed success. No guarantees, naturally.

While Boohoo’s efforts to cut costs and refocus its brand strategy are steps in the right direction, it faces huge challenges, from internal restructuring and leadership changes to external pressures and intense competition.

With the cost-of-living crisis dragging on, and Donald Trump’s tariff threats spreading wider uncertainty, I wouldn’t invest £999 of my own money in Boohoo today, let alone £99k. Investors considering a punt this stock should exercise extreme caution.