Royal Dutch Shell (LSE: RDSB) (or just Shell after its planned name change) is currently the largest company in the FTSE 100 index. Its market value is £128bn, which makes it one of the world’s largest oil and gas companies. I’m considering buying Shell shares today after an activist investor took a stake in the firm. It thinks there might be hidden value in Shell that the market isn’t recognising.

Let’s take a look at what’s going on.

An activist investor

As a quick recap, an activist investor is a person, or investment company, that buys a large stake in a public company to influence how it’s being run. Usually this is because they see hidden value in the company that is being mispriced by the market.

The activist investor here is Third Point. It bought a position in Shell this year as it sees “opportunity for improvement across the board”.

Triple Point expects Shell’s liquified natural gas (LNG) business, together with its Renewables and Marketing businesses, will generate EBITDA (earnings before interest, tax, depreciation and amortisation) of over $25bn in 2022. This would account for 40% of Shell’s EBITDA in this year.

Moreover, Triple Point views this amount of EBITDA as likely to support the whole value of the group as it stands today. This is due to the growth prospects of these businesses, and the fact that Shell shares today look cheap.

Triple Point believes Shell should spin off its LNG, Renewables and Marketing businesses to allow it to invest aggressively in decarbonisation strategies. This would leave its legacy oil and gas business to prioritise returning cash to shareholders.

Recent results

I view Triple Point’s strategy as promising. It’s not unknown for the market to misprice a business. I wrote about Intel’s Mobileye spin-off recently that also appeared to be undervalued by the market.

But before I consider buying Shell shares, I need to understand the current prospects of the whole business, including its legacy oil and gas division. This is because the demerger of the LNG, Renewables and Marketing ops might not happen.

The firm’s revenue is set to grow by 42% in 2021, and is estimated to increase again in 2022, by 11%. Earnings are expected to grow too, by over 300% in 2021, and 29% in 2022. However, it’s important to note that revenue and profits fell considerably in 2020 due to the disruption caused by the pandemic.

The valuation for Shell today based on a forward price-to-earnings (P/E) ratio is 7. This is dirt-cheap in my view. The forecast for the dividend yield is also respectable at 4.4%.

Are Shell shares a buy?

I like the potential here. If the demerger of the company’s LNG and Renewables businesses happens as outlined by Triple Point, then it would unlock a lot of value.

I have to keep in mind that this may not happen. It’s a risk to consider before I buy the shares. On balance, though, I think Shell shares are a buy for my portfolio.

Dan Appleby has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

All things considered, 2021 has been pretty kind to UK investors. Bar a few wobbles along the way, many companies have recovered well from the coronavirus market crash of March 2020.

That said, I’m keeping my tin hat very much to hand. Here are five potential reasons why stocks could tumble once more in 2022.

Omicron takes hold

Despite Boris Johnson attempting to turbocharge booster vaccinations before the end of the year, many medical experts now believe that the UK is destined for a very unpleasant jump in infection levels come January.

Is another lockdown on the way? Never say never. Regardless of the restrictions that might be introduced, however, none of this will be good news for the vast majority of businesses. Airlines, pub stocks and retailers will likely be hammered. Again. 

Rising prices…

Yesterday, it was reported that inflation in the UK had hit a 10-year high due to a toxic cocktail of issues including supply chain woes, lack of staff and the ending of furlough. 

None of this will be resolved overnight. The more costly raw materials are, the more businesses will attempt to pass this on to the consumer. And the more expensive things get, the less demand there is, even if wages are going up.

As a result, the earnings of many UK companies could suffer. And when this happens, share prices don’t do well. 

….and rising interest rates

Of course, one way to tackle inflation is to raise interest rates (as the Bank of England has just done). The problem is that rates have been so low for so long, many of us have got used to them, including growth-oriented businesses. Being able to borrow money to fund, say, research and development has been almost too easy.

The outlook may not be so good, especially if a company isn’t yet profitable. Cue extra pressure on share prices.

Speculation hits the fan

Meme stocks, cryptocurrencies, non-fungible tokens — they’ve all attracted insane amounts of cash in 2021. A lot of this has come from younger traders, keen to mimic the (apparent) riches of those posting on Reddit threads such as WallStBets.

I can’t help but think this won’t end well. A bit of speculation is inevitable, but the strategy of paying no attention to fundamentals and relying completely on someone else paying more for something than I did is risky in the extreme.

Too much froth

A fifth reason is that the valuations of many stocks — particularly across the pond — are looking very frothy. The Schiller P/E (a metric that uses the average earnings for the S&P 500 over 10 years, adjusted for inflation) has only been higher just prior to the dotcom market crash. The index is also being propped up by just a few tech titans. 

When valuations are excessive, perfect execution is demanded. No business is perfect.

Would any of this matter?

In the short term, yes. It’s not easy to awaken to a sea of red in one’s portfolio or watch its value fall for days. I’ve been there.

However, I’m also confident that none of the above will stop me from investing. Stock market crashes are par for the course. To win this game, I need to buy quality shares when others are selling. Another big capitulation might offer me that opportunity.

Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Whenever I have covered Wise (LSE: WISE) shares, I have always tried to make it clear that I believe the company has tremendous potential to grow in the global foreign exchange market.

The company’s market share is less than 1% of the £5trn a day global foreign exchange market. This means it has barely scratched the surface of this vast global marketplace. 

And I believe the enterprise will start to make a name for itself next year, as it reaches its first anniversary as a public company. 

The outlook for Wise shares in 2022

According to the company’s report for the six months to the end of September, the group served 3.9m customers in the third quarter, an increase of 23% year-on-year. Its overall payment volume also increased 44% year-on-year, which showcases Wise’s appeal to consumers.

Unlike many other technology companies, Wise actually reduced the price its customers paid in the third quarter. The cost of each transaction declined from 0.69% to 0.62%. 

By comparison, other companies charge as much as 3% of each transaction to convert currencies. This is the main reason why I think Wise shares will continue to head higher in 2022. The business is providing a service that clearly appeals to customers at a low price. Compared to competitors, the firm’s prices stand out. 

Management is planning to continue to reduce costs to consumers for as long as the company can sustain this strategy. As the group is already free cash flow positive, it looks like it can still push costs lower. 

For the six months to the end of September, Wise’s free cash flow totalled £59m, increasing 39% year-on-year. As this grows, it looks as if the business can continue to increase its marketing spend and reduce the cost of money transfers with consumers. The combination of lower costs and a wider marketing push should entice more consumers to the platform. 

Challenges ahead

Despite the company’s improving outlook, Wise shares will undoubtedly face some challenges as we move into the new year. These could include competition from larger peers that can afford to undercut the business on each transaction. 

If the group’s larger competitors decide to take meaningful action against the enterprise, it could struggle to fight off this competition. Profits will come under pressure as a result. These challenges could hit the company’s share price and force it to direct spending away from growth to maintaining market share. 

Despite these risks and challenges, I think the group could make an attractive addition to my portfolio in 2022. I believe Wise is reaching an important stage in its growth story. And I want to be part of the company’s expansion over the next few years.

As it continues to expand, I think the firm can become a force to be reckoned with in the international foreign exchange market within the next five years.

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

When looking for passive income ideas, there is no shortage of suggestions out there. But to my mind, the simplest strategy is to buy shares in quality FTSE 100 blue chip companies that pay a healthy dividend.

As there are 101 constituents in the index (due to Royal Dutch Shell having two share classes), with a large number of them paying a dividend, then one obvious and extremely cheap way to get exposure to them all is to buy a tracker fund. There is no shortage of providers in this respect. For example, both Vanguard FTSE 100 UCITS ETF or iShares Core FTSE 100 UCITS ETF pay a dividend yield of just under 4%.

Although this seems like a great way of spreading one’s risk, there are two factors to consider:

• As a tracker fund attempts to mimic an index, then a few companies end up dominating it. So, in a FTSE 100 tracker, the 10 largest companies have a weighting of over 40% and not all of them offer fantastic dividend yields
• With inflation currently running at 5.1%, and rising, then one is effectively relying on capital appreciation to make up the shortfall in the dividend yield on your average tracker fund.

Far too many investors discount the effect of inflation on their overall portfolio performance. Psychologists have a name for it: the ‘money illusion’.  Without getting technical, studies have proved that so long as the absolute change in performance is positive, we view it as a good thing – even if the real result (after inflation) is actually negative.

I am attempting to beat inflation by picking my own dividend stocks

I am a firm believer that one doesn’t have to be a financial whizz kid or have unusual business insight to be a successful investor. Instead, the largest challenge is keeping one’s emotions in check. A simple strategy that I employ in this regard is to develop a robust framework based around a core investment thesis.

Developing an investing strategy isn’t as hard as it sounds. I don’t have hours to spend every week researching the market, but I have the same basic tool available to me as the pros, namely the internet.

Of course, one could look at the FTSE 100 constituents and buy the highest-yielding ones. But that way I could end up choosing a stock that either doesn’t fit in with my own personal beliefs or whose yield turns out to be unsustainable.

As a value investor, I believe that a narrow group of stocks will be the winners in a world of rising inflation. Elsewhere, I discussed the investment case for BP and Shell. Their dividend yield may not be the best but they have potential upside both as a capital and income investment. And as the world transitions away from fossil fuels, I would rather be invested in companies that have both the financial and intellectual clout to capitalise in the new green economy than riskier smaller ventures.

Another group of stocks I believe to be fantastic passive income generators in today’s environment are precious metal miners. Polymetal, a top-ten world gold producer, offers an impressive 8% yield. Recently, its share price has been trending downward (as has the sector as a whole) and it is a company that I am definitely interested in building a position in.

Andrew Mackie owns shares in BP and Royal Dutch Shell. The Motley Fool UK has no position in any of the shares mentioned. 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.

Investing in BT Group (LSE:BT-A) shares is a popular choice here in the UK. The telecommunications giant can be found in many institutional and personal portfolios. And just this week, the stock has managed to grab even more investor attention on rumours of a potential acquisition.

So should I be considering an investment in this business? Let’s explore.

Is BT ripe for acquisition?

Last month, rumours started circulating that Indian conglomerate Reliance Industrie was in early-stage talks with BT’s management team about a potential takeover. This news even managed to push the BT shares up by nearly double-digits. But, since then, another interested party may have entered the arena.

Altice, a French multinational telecommunications and media firm, has started buying shares. A lot of them. In fact, the group now holds 18% of the total voting power for the company. Patrick Drahi, Altice’s president and founder, has said he is not intending to make a bid for the company. But, in my experience, this is starting to look like the early stages of a hostile takeover.

So is BT about to be bought out? No. At least, I think it’s highly unlikely. Why? Because the British government have made their stance on the prospect very clear.

“The government is committed to levelling up the country through digital infrastructure and will not hesitate to act if required to protect our critical national telecoms infrastructure.”

In other words, even if a bid is made, I think regulators would more than likely block any deal. But, acquisition rumours aside, are BT shares still worth buying?

A bull and bear case for BT shares

Over the last five years, an investor holding BT shares is probably quite disappointed. That’s because the stock is down almost 50%. There are undoubtedly numerous factors behind this lacklustre performance. But from what I can tell, the primary catalyst was a complacent management team that allowed competitors to steal market share. 

Consequently, both revenue and earnings have slowly started falling over the years. In turn, the group became more reliant on debt financing to run and expand operations, compromising the balance sheet in the process – a problem that remains present today. That’s obviously not the trait of a winning business.

However, there is still hope for a long-term comeback. The management team admitted its neglect to shareholders and is now doing something about it. Under a new £15bn investment programme, the company is rapidly expanding its fibre optic infrastructure to cover 25 million homes by 2026.

Looking at the latest half-year report, BT seems to be on track to meet this goal. It has currently equipped six million homes with fibre. That’s 24% of its target within the first seven months – not bad. And with equally impressive progress made with its 5G network rollout, BT shares might be about to gain some significant upward momentum.

Is now the time to buy?

I must admit, my opinion of BT and its shares has improved drastically in 2021. And so far, management’s new strategy seems to be working. Yet, personally, I remain untempted to add this stock to my portfolio, even as a relatively small position, like £2,000.

It does, after all, still have a substantial debt problem. And I think there are far better and less risky investment opportunities for me elsewhere.

Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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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Warren Buffett is understandably one of the world’s most respected investors. Along with Charlie Munger, he built Berkshire Hathaway into a major US company. Among its top holdings are blue-chip US companies like Apple, Bank of America, Coca-Cola, Kraft Heinz and Moody’s. Buffett has generally avoided the UK, despite the UK market having been cheap since around the time of the Brexit vote.

So what might he buy if he looked at these shores? These FTSE 100 shares are two I like and I think Warren Buffett would too if he was tempted to invest in the UK.

A top Warren Buffett-style share

Given Buffett and Munger’s philosophy of investing in high-quality companies, I think they’d like Unilever (LSE: ULVR). They supported Kraft Heinz’s attempt to acquire it back in 2017. The margin of safety has actually increased since then as the price-to-earnings ratio (P/E) on the fast-moving consumer goods (FCMG) company has fallen in recent years. That makes buying the shares potentially less risky and certainly less expensive.

Given that Berkshire already holds both Coca-Cola and Kraft Heinz among its top holdings, Buffett clearly likes the FMCG sector. I think this is because companies like Unilever have international sales, big markets, strong brands and dependable, high cash flows. They spend heavily on marketing to hold market share and keep customers loyal to their premium brands.

However, if that spend doesn’t create new markets and demand, or encourage loyalty to Unilever’s brands, then sales will slip away. Sales growth has been slow during the pandemic as lockdowns discouraged spending on beauty products in particular. Longer term, that needs to be fixed.

I’m keeping an eye on Unilever but won’t be buying the shares just yet as I want to see the impact of inflation on the business and more top-line growth. 

Another Buffett-type stock? 

This may surprise some, but I think Buffett could be tempted by UK bank Lloyds (LSE: LLOY) were he to ever invest in Britain. As shown in its top holdings, Berkshire has already chosen to hold US financial stocks such as Bank of America and credit rating agency Moody’s.

I think Lloyds’ focus on the UK and simpler structure, low cost-to-income ratio versus other banks and big share of the UK market would appeal to Buffett. I like Barclays but it’s a more complicated bank given it’s US ops and its investment banking arm, which is more volatile and reliant on staff making the right decisions.

Lloyds as a UK retail bank dealing in mortgages and other financial products for individuals and businesses is easier to understand. Buffett famously doesn’t like to invest in more complicated, hard- to-understand businesses. The Lloyds business model should therefore be more appealing to him.

As, I think, would the valuation. The forward P/E is around seven, and a ratio under 15 is generally seen as being cheap.

When I add the potential for dividend growth post-pandemic and the overall health of the UK housing market, it seems like a share with plenty of upside potential.

Of course, Buffett may look at Lloyds and think it’s overly reliant on the UK for its revenue and profits. As a financial stock it’s also cyclical. But on balance, I think he would like it and I do too. I may add it to my own portfolio.

Andy Ross owns no share mentioned. Bank of America is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool UK has recommended Apple, Barclays, Lloyds Banking Group, and Unilever. 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.

Royal Mail (LSE: RMG) shares have been up and down over the last few months. The Christmas period is a busy time for the postal service and as a consequence, the shares crept up almost 20% during November. However, broaden this horizon to six months and the shares are down 18%. So, is now a good time to invest? Let’s take a look.

The bull case for Royal Mail shares

Royal Mail released its most recent trading update on 18 November. For the half-year ending 26 September, the firm’s revenues climbed 7% to £6.1bn and pre-tax profits rose by over 18 times, totalling £311m. With such encouraging results, it was no surprise that Royal Mail shares surged 7% by market close.

In addition to this, the firm announced it would be paying over £400m to investors. This was done through an immediate £200m share buyback and a £200m special dividend. It was also announced that a £67m interim dividend would be paid. Extra cash paid out to investors is a great way to draw in new ones.

Keith Williams, the group’s non-executive chair, announced that the extra capital generated from an encouraging year would be used to enhance the firm’s technological capabilities. Royal Mail has already begun taking steps towards this, recently unveiling a new fully automated parcel sorting machine at its Tyneside site. The machine can reportedly sort up to 180,000 parcels a day.  This will be crucial for managing the busy Christmas period.

And the bear case

Although the new Tyneside machine is helping out during the festive season, the firm has announced it has been struggling to hire enough part-time workers to cover the period. The main reason for this is Covid-19 related sickness and self-isolation issues. Royal Mail is bearing the brunt of this. For example, it has been reported that almost double the number of employees are absent compared to before the pandemic. If the firm can’t get this under control, it won’t be able to fully capitalise on one of its busiest business periods and frankly, it’s running out of time with Christmas just nine days away. This will impact results and could drive down Royal Mail shares.

What’s more, the Omicron variant is likely to further exacerbate this issue. Yesterday, Dr Jenny Harries, head of the UK Health Security Agency, announced that the variant would likely be the “most significant threat we’ve had since the start of the pandemic”. This is bad news for Royal Mail because if the situation keeps escalating, it’s likely to face even more worker shortages. I expect this to drive down the shares due to its effects on its results.

The verdict

I liked the look of how Royal Mail was emerging from the pandemic. A more streamlined workforce, abundant capital, and great results all filled me with confidence. However, Omicron seems to have put a quick end to my optimism. I think the next few months are going to prove tough for Royal Mail shares. As such, I won’t be adding them to my portfolio today.

Dylan Hood has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

2021 has been another year characterised by the pandemic. Some sectors have soared, while others have lagged behind. Overall, the FTSE 100 has climbed 9%, sitting at 7,170 at the time of writing. With 2022 on the horizon, I have picked out three stocks in different industries that I think could offer great growth throughout the year.

The first stock I have chosen is UK retail and grocery firm M&S. Delivering a whopping 69% year-to-date return, the retail chain has proved a top FTSE 100 performer. There are a number of reasons I think the firm will continue to offer strong growth throughout 2022. Firstly, M&S has announced a series of great results throughout 2021, delivering £296m free cash flow for the year. Secondly, the firm has an improving online presence through its 50% stake in Ocado‘s retail operation. The pandemic has accelerated the shift to online spending, and M&S is well poised to capitalise on this throughout 2022. Finally, as I covered in another article the firm has many of the qualities of a great private equity (PE) investment. If a PE firm took over M&S, I think we could see some big share price growth, although I’m more interested in it for long-term returns as an independent business. It does still come with risks as its recovery isn’t guaranteed to last and retail is a tough market to operate in, but I’d consider buying it today.

My second stock is electric car manufacturer NIO. Unlike M&S, the NIO share price has had a rough ride throughout 2021, falling 44% year-to-date. However, currently sitting at $29, I think this stock has the capacity to climb throughout 2022. Its growth has been very encouraging over the past year. Results published in November highlighted a 120% increase in deliveries year-on-year. Also, the firm is expected to release two new models at its ‘NIO Day’ event on 18 December. This could help push up the share price going into 2022. However, the business has been battling with the supply shortages caused by the pandemic. For example, in October the firm had to halt production, leading to a 65% decline in month-on-month vehicle production. This is a risk that could hold back the NIO share price throughout 2022. That being said, I think at current cheap prices, NIO could offer healthy growth in 2022. I own some shares already but may buy more.

The third stock I like the look and might buy for 2022 is Lloyds. Having delivered 27% year-to-date returns, the firm is in a good place moving into the New Year. I like the look of Lloyds partly because of its exciting growth plans announced by new chief Charlie Nunn. The refreshed strategy could enhance the firm’s position in some of the markets where it’s not strong, such as wealth management and investment banking. In addition to this, Lloyds is planning to become the UK’s largest private landlord through its newest venture, Citra Living. If these plans come to fruition during 2022 then I think we could see some healthy growth in the Lloyds share price. One risk however is the threat the Omicron variant may pose to the UK economy. If more lockdowns occur, it could dampen the growth of Lloyds’ business ventures.

Dylan Hood owns shares of NIO. The Motley Fool UK has recommended 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 Boohoo (LSE: BOO) share price has had an awful 2021. Following today’s trading update, it just got even worse. Now down 66% year-to-date, it’s hard to come across many people with a good thing to say about the former market darling. In fact, something’s come to my attention that suggests things might get even worse before they get better. 

Boohoo share price: attack of the shorters!

According to shortracker.co.uk, the number of short-sellers targeting Boohoo has increased significantly.

Short-selling (betting a share price will fall) is a risky business. While the gains from betting long on a stock are technically infinite, there’s always a limit to the extent these traders can profit. In other words, a share price can’t go below zero. This makes it important for any shorter to be extremely confident in their view that Boohoo will continue to struggle.  

At this point, it’s worth highlighting that the fast-fashion giant is far from being the most shorted stock on the UK market. That dubious accolade (justifiably) goes to heavily-indebted Cineworld. However, Boohoo is now 13th on the leaderboard, not far below battered FTSE 100 member International Consolidated Airlines.

Buy, sell, or hold?

As a shareholder, it goes without saying I haven’t enjoyed Boohoo’s recent form. The emergence of a significant minority of short-sellers is another headache. Having said this, I’m not intending to sell for a few reasons. 

First, Boohoo has survived such selling pressure before. Back in May 2020, hedge fund ShadowFall claimed the company was overstating its profits and cashflow. These allegations were quickly refuted and shareholders regained their composure.

Second, many online retailers are struggling right now. Industry rival, for example, ASOS continues to suffer. Lockdown beneficiary AO World has fared even worse. So it’s simply not the case that everyone else is getting richer while Boohoo’s owners suffer.

Third, if sentiment is already low, it takes just a bit of better-than-expected news to generate a ‘short squeeze’ where those betting against a company rush to close their positions. This can often put a rocket under a share price.

Lastly, I’ve made a point of being sufficiently diversified elsewhere not to make selling my holding at (possibly) the worst time even necessary. Successfully mitigating risk in tis way is key to staying in the investment game and applies to all my holdings.

No guarantees

Perhaps I’m just biased. There’s no rule to say the Boohoo share price won’t fall even further, especially after today’s statement.

While demand in the UK looks steady, overall net sales only rose 10%  in the three months to 30 November due to a much higher amount of clothes (particularly dresses) being returned. Performance abroad has also suffered from longer delivery times/higher costs. As a result, Boohoo is now guiding full-year net sales growth of between 12% and 14%. That’s a big reduction to the 20% to 25% previously expected.

Worrying as all this is, these numbers (and the presence of shorters) merely confirm what we already know: times are tough and this company is firmly out of favour. And, seen through a long-term lens, the best time to buy a company is often when things look bleak.

With its growing portfolio of brands, huge overseas growth potential, new distribution network and strong finances, I’m cautiously optimistic Boohoo will rise again.

Will I sell? No. Hold? Yes. Buy more? Possibly.

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.