The Boohoo share price has bounced back. Is it too late to bag a bargain?

first_img Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended NMC Health. 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. Enter Your Email Address See all posts by Alan Oscroft Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images Alan Oscroft | Thursday, 28th May, 2020 | More on: BOO I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img The Boohoo share price has bounced back. Is it too late to bag a bargain? Boohoo (LSE: BOO) has been one of the winners in the FTSE 100 crash. As the Covid-19 lockdown has closed all UK clothing stores, online sellers have been enjoying a boost in demand. I was surprised then, to see the Boohoo share price fall this week.From a high on Tuesday of 380p to the end of business on Wednesday, Boohoo shares lost 12% of their value. Things have reversed on Thursday, and the price has bounced back with a 17% gain, at the time of writing. But what’s been happening, and is this price uncertainty providing us with a buying opportunity?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Boohoo share priceWe’re too late to take advantage of this week’s dip. As it stands, the Boohoo share price is now up 30%, so far, in 2020. But that alone doesn’t mean we should turn away.The price fall came as a result of a short-selling attack on the company. Fortunately, it’s not from Muddy Waters, as an attack from that renowned company can be enough to crush a stock. Muddy Waters attacked NMC Health earlier in the year, accusing it of balance sheet manipulation and inflated asset purchases, among other misdeeds. The resulting exposure of the firm’s finances, and those of founder BR Shetty, have led to a share price collapse and the cancellation of NMC’s London listing. And it’s brought about the financial downfall of Shetty too.Cashflow questionsIn the Boohoo case, the attacker is the UK’s Shadowfall, which has accused Boohoo of presenting a “misleading impression” of its cashflow. Shadowfall alleges an overstatement of £32.2m. But it certainly hasn’t had the same effect on the Boohoo share price as the Muddy Waters attack on NMC.One of Shadowfall’s claims is that Boohoo treated subsidiary PrettyLittleThing as a wholly-owned investment when it actually owned 66%. Boohoo’s rapid response, on Thursday, was to announce the acquisition of the remaining 34%. There’s an initial consideration of £269.8m, potentially rising to £323.8m. Boohoo said: “The acquisition is expected to be significantly earnings enhancing on a fully diluted basis with immediate effect.” That announcement was just what the Boohoo share price needed.Prior to that, Boohoo had issued a note of its own saying it “strongly refutes the allegations made in the research note.” The company went on to point out that its annual results contain “clear definitions, alongside a full reconciliation down to net cash flow for the financial year.” It also explained it had an option to acquire the remaining 34% minority shareholding in PrettyLittleThing.Buy or sell?What does all this mean for shareholders, and is the Boohoo share price attractive? I think it’s unlikely there’ll be much substance coming from this short selling note. I see Boohoo shrugging it off and carrying on with business as usual.I think it’s a good business too, and I expect profitable expansion in the years to come. The only thing I don’t like is the Boohoo share price valuation. On a forward P/E for the current year of a massive 60, I see no safety margin there at all.I wish you well if you’re a growth share investor, but it’s still too risky for me. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 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