London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
You will only have one login account. Registering with multiple accounts is not allowed. Any user found to have more than one account on this site will have all, and any future accounts suspended permanently.
Your email and password must only be used by you. If a post is made under your account, it will be considered that it was posted by yourself.
Your account nickname must not be the same, or contain, listed company names or board members' names.
While debating and discussion is fine, we will not tolerate; rudeness, swearing, insulting posts, personal attacks, or posts which are invasive of another's privacy.
You will not;
discuss illegal or criminal activities.
post any confidential or price sensitive information or that is not public knowledge.
post misleading or false statements regarding the share price and performance. Such posts are deemed as market abuse, and may be reported to the appropriate authorities.
post any private communication, or part thereof, from any other person, including from a member of the board of directors of a listed company. Such posts cannot be verified as true and could be deemed to be misleading.
post any personal details (e.g. email address or phone number).
post live price or level 2 updates.
publish content that is not your original work, or infringes the copyright or other rights of any third party.
post non-constructive, meaningless, one word (or short) non-sense posts.
post links to, or otherwise publish any content containing any form of advertising, promotion for goods and services, spam, or other unsolicited communication.
post any affiliate or referral links, or post anything asking for a referral.
post or otherwise publish any content unrelated to the board or the board's topic.
re-post premium share chat posts on regular share chat.
restrict or inhibit any other user from using the boards.
impersonate any person or entity, including any of our employees or representatives.
post or transmit any content that contains software viruses, files or code designed to interrupt, destroy or limit the functionality of this website or any computer software or equipment.
If you are going to post non-English, please also post an English translation of your post.
If you are going to post non-English, please also post an English translation of your post.
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium and Verified Members
Premium Members are members that have a premium subscription with London South East and have access to Premium Chat. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
thanks, but until the large mysterious post hour seels stop, we are stuck at this point. We should be testing new ground by now. Fixed overhead reaping rewards, variable producing new margins with new sales thanks to aquasitions. I can only assume the market will not grow the price until we know how much of the £1bl of new sales stick plus mixed of new going out clothing at again higher margins gives rise to a market update. Cannot be too long, in coming now.
Interesting comment re: holding banks. If the interest rates are going up due to inflation it's not necessarily good to hold businesses which, by their very nature, hold a lot of currency.
Only way I see it is it's good to hold businesses which produces a lot of cash at good margins and have pricing power (which I think ASOS do, particularly with their own brands.)
Only issue with ASOS I see is they seem to need a large amount of capital investment to grow - I know, who doesn't, put ASOS's return on said capital isn't always best (as we all know from recent history.)
Inflation at present was expected whilst we have been dealing with Covid 19 as prices have gone up due to higher transport costs, pushing up the price of materials, however as things begin to ease, production will be back in flow, and then we will see a reversal in inflation.
You say Banks are a good risk, however they will soon face headwinds of decentralised finance/insurance and this will create downwards pressure on their balance sheets.
We also have not had the full fallout for business failures, as most have been artificially supported. When this support ends, it will be only then we will see the true extent of the damage of COVID 19 on business and what effect that will have on the balance sheet of banks.
Asos and Boohoo have shown to be resilient in almost all trading conditions, another flare up or a variant that cannot be controlled by a vaccine, then the Banks and Financial institutions will tumble. Bottom line yes there is risk, however I feel ASOS is a low risk investment.
ASOS and Boohoo business model is Growth is by acquisition, as well as the year on year increase in online sales. There is no getting away from the fact, that Online businesses are growing, they are growing fast and they are the future of retail. Amazon have already demonstrated an online scalable business is unlimited in its growth potential.
It's "potentially" that powerful when Asos is valued on 40x earnings. If you have inflation of 2% annually for the next 40 years the £1 you will receive in 40 years time on a discount basis would be worth pennies to you today. If inflation is flat it would be worth a £1
So yeah can be a big impact but Asos's huge P/e amplifies this effect - it means earning have to grow faster and faster so investors feel that will be the same bang for the buck in the future
But growing faster dials up the risk? And if inflation is up and interest rates follow why gamble with asos when the bank might pay you a decent retrun with 0 risk
I hear you all but to cause a near 20% drop regardless of inflation seems well over done. It sends us back to levels on feb 21 which even with inflation makes no sense to me as the growth in the business seems much more stronger than any inflation fears. I understand a slowing of the rise in stock price but I don't quite understand how inflation can cause us to go so far back. Is it that powerful? It's a fluctuating indicator whereas asos results have been concrete.
"I still think that they could have operated everything centrally and their invoicing could merge the 2 brands" but the point is that you're hoping the customer goes "oh i'll buy a t shirt from topshop" and then goes "oh now to asos for trainers and make up"
You can't control that in that transition they didn't go to PLT instead. It all needs to be on one site to drive the x-sell
Also it would have to be a very smart system to realise "oh those two orders need to be together" and bundle them. How long would that window of "bundling" time have to be open for? Asos sends a parcel out in minutes. So in the example above the topshop dress could be picked and ready to go while you're still deciding what type of shoes you want. Next day delivery would be impossible as well as running a huge risk that the customer goes elsewhere mid-shop
The other issue is you're thinking the brand value is just a website. Topshop brand is older than the internet. Anyone who goes and googles topshop will only find asos and they will go "great same topshop but now next day". Why do you think asos have lost something?
Also as I said more clothes of topshop were sold on asos than the topshop website. So in reality what value is in that website? It wasn't popular before
Key here is driving x-sell and up-sell. You can't do that with two websites
I can't understand how this stock after posting awesome results has fallen so much. It makes me question the fundamentals of investing. I understand profit taken but this has dropped what 20% after posting earnings that beat. I'm a long term investor but sometimes I question whether investing is just gambling when this happens!
Interesting to get many perspectives on the domain side of things.From my perspective I would rather that ASOS kept the TOPSHOP.com branded as TOPSHOP. ASOS paid good money for the BRAND and brand is everything, there was no need to merge them both. I can see that there is a good argument in regards to streamlining and cutting costs with the merge. However I still think that they could have operated everything centrally and their invoicing could merge the 2 brands, so in essence there would be little impact on the back end and only be the front end would appear sepaarte. This would of given them the advantage of both worlds. However I have to say, ASOS know better that me, I would of thought, and maybe the way they did it brought more customers to ASOS. I love both brands, and felt it would of been better if they were both separate.
On another note I can see that ASOS is becoming a hub for a collection of brands, so moving forwards you could have separate brands brought together in one place, a bit like a mall online. Be interesting to see how ti all plays out moving forwards.
I was meaning from consumer physiology. For example in sweden where I lived years some buy and only buy Volvo. They like Volvos and they "know" Volvos. They like what makes a Volvo a Volvo, they have experienced it, they have fely it, and prefer to only buy Volvo. If Volvo was bought out by say Audi to keep it simple, do you think Audi will put a Audi logo on a Volvo car? No they wouldn't as they are destroying Volvo's branding and image and counter a big reason why they bought Volvo in the first place. I don't suggest keeping Asos and Topshop completely separate, but on Asos website at least show ex-Topshop buyers where Topshop's clothing range is , hinting at a divergance of the two brands. At the top of Asos website at least mention Topshop. Consumers like to identify with image and brand so taking that all away directly is a big mistake and would make an ex-Topshop consumer felling alittle confused and lost. This is especially when they paid around £300 million for it. To scrap the brand you just paid so much money for is stupid.