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Gladstone Capital Management have significantly reduced their short. 0.58%
High street retailers will go bust, accelerating the structural transition to more online shopping. Likely to hit 4000+ in the next twelve months.
Such a fast bounce back! What a share.
Nice move today, lockdown easing imminently and sales will respond accordingly. Can't see the high street getting much traffic in coming months..
I really love ASOS but I can't get past the level of short and long term debt they currently have. Could anyone explain why their current level of debt should not be a cause for concern?
Perhaps it's more about looking long term and the potential for greater business, but short term is going to be a tough ride, surely?
Oh yeah, 3000p at the very least I'd say. Potential for much greater over the next few years as high street fashion continues its decline. All in my humble opinion of course.
He still has around £80m. He probably just has another project he is funding. He did similar last year. I’m not selling until 3000p
I think people are taking profit from the 100% rise in a short period of time.
I’m invested in ASOS and was very pleased to see the results recently and placing. However, am at odds why we have had a fairly sustained drop in SP. I’m expecting the to head to 2500p+. Tempted to buy back in.. any thoughts?
This and supermarkets should be doing very well even though this seems a little out of favour today.
I expect ASOS to be seeing similar sales recovery. The market is potentially pricing 25% sales reduction for Q2, given what was reported in their results. I now believe this to be incorrect and have bought back in at 2160p
UPDATE 2-Boohoo bucks British lockdown blues as sales rebound - Reuters
22-Apr-2020 10:06:24HEALTH-CORONAVIRUS/BOOHOO (UPDATE 2, PIX)
* Has seen improved year-on-year sales growth in April
* Can't give guidance for new financial year
* Has sufficient financial headroom to get through crisis
* Shares rise 5.9%
(Adds detail, analyst comment, shares)
LONDON, April 22 (Reuters) - British online fashion retailer
Boohoo said on Wednesday its sales had recovered in recent weeks
after taking a hit in March due to the coronavirus crisis,
benefiting from trading through the lockdown while rivals'
stores are closed.
In an attempt to limit the spread of the virus, all
non-essential stores in Britain have been closed since March 24.
However, the government has said online businesses should
continue to operate.
Boohoo said it had seen improved year-on-year sales growth
during April after a marked slowdown the previous month.
However, it cautioned that given the uncertainty generated
by the COVID-19 pandemic, it could not provide guidance at this
stage for its new financial year ending next February.
Boohoo sells own-brand clothing, shoes, accessories and
beauty products targeted at 16 to 40-year-olds.
Its shares were up 5.9% at 0816 GMT.
Britain's store-based retail sector, outside of food, has
been severely hit by the lockdown to counter the pandemic, with
already weak players such as Laura Ashley, Debenhams and Oasis
Warehouse all falling into administration over the last month.
"Boohoo is well placed to gain further market share in these
difficult times," said analysts at Jefferies, noting that in
lockdown consumers are spending considerably more time on social
media, a key strength of the retailer.
"Boohoo has the ability to protect its business and look for
expansion opportunities," they said.
Boohoo's main UK rival, online player ASOS
took a big hit in March; it said on April 7 its sales had
plummeted 20-25% in the previous three weeks. It raised 247
million pounds of new equity and extended debt facilities to
shore up its finances and help get it through the crisis.
ASOS has yet to give a further update for April sales.
The current crisis has overshadowed a stellar 2019-20 year
for Boohoo. Group revenue soared 44% to 1.24 billion pounds,
with UK sales up 39% and international up 51%. Core earnings
(adjusted earnings before interest, tax, depreciation and
amortisation) rose 50% to 126.5 million pounds.
The company said it had analysed a range of scenarios for
differing levels of demand as it looks to weather the pandemic
and the possibility of warehouse closures.
Having stress-tested its liquidity in these scenarios it was
comfortable it had sufficient financial headroom, pointing to a
largely variable cost base, low cash burn rate and 241 million
I hope you don't mind me gatecrashing the BB, but I do think that this open letter is well worth signing. See what you think and all the very best to everyone.
To the boards and management teams of the UK’s listed companies.
COVID-19 is leading to a large wave of recapitalisations for UK PLCs. We are concerned that UK retail investors are not receiving their entitlements to participate in these often discounted fundraisings.
Here are the facts:
The FCA’s welcome stance on pre-emption rules has enabled companies to issue up to 20% of their share capital quickly and without a rights offering to broader shareholders.
UK PLCs are now issuing significant amounts of shares directly to institutional investors and typically at discounts to already depressed share prices. As of the date of this letter, this includes ASOS PLC, Hays PLC, Hotel Chocolat Group PLC, Informa PLC, Joules PLC, MJ Gleeson, SSP PLC and WH Smith PLC.
The FCA Statement of Policy stresses the importance of “retaining an appropriate degree of investor protection” and that “Issuers can play an important role in delivering ‘soft pre-emption’ in the placings”
While we recognise the need for businesses to raise equity capital in an expedited fashion, we are concerned that no protections are being afforded to retail investors.
Technology exists today to run a retail offer as part of an accelerated fundraise, with no delay to the issuance timeline or impact on pricing. www.primarybid.com, for example, has partnered with London Stock Exchange to do exactly this (at no cost to individual investors).
We encourage UK PLCs and their boards to protect individual shareholders and employees by respecting their rights to participate alongside the institutional investors, management teams and board members.
This is more than just good governance
Retail investors are showing unprecedented support for UK PLCs. In recent weeks, they represented over 20% of the volume on the FTSE All Share with 60-74% of this volume being BUY orders. UK stockbroking platforms are reporting over three-fold increases in new account openings. They can and should represent a powerful source of funds for listed companies.  
This letter requests the following calls to action:
UK PLCs consider the FCA guidance by “exercising their right to be consulted on, and to direct, bookrunners’ allocation policies” and mandate retail tranches as part of a fundraise
All deal advisors ensure retail investors are part of their thinking when structuring a fundraise
Retail investor industry bodies continue working with The Pre-Emption Group (PEG) and the Association for Financial Markets in Europe (AFME) to ensure that best-practice guidance makes reference to the importance of retail involvement in accelerated capital raisings.”
We urge anyone who has sympathy with our views to sign this open letter and draw attention to this important issue.
I sold this afternoon. Not sure if it was the right thing to do or not. Boohoo report on 22nd, this could move the price a bit (not sure which direction).
I sold this morning to take a £350 profit, but obviously will be looking to get back in at some point. Do we reckon this will be back down to £21 before it hits £24 again?
I think the rises are being driven by the shorters closing. I think we have now priced in, the improved margins. Now for the next level of re-rating we needs to sales increase again as corona virus shutdowns are slowly removed.
Don't know about the credibility of these guys, but this is their latest:
Some ASOS Plc (LON:ASC) shareholders may be a little concerned to see that the Co-Founder & Non-Executive Director, Nicholas Robertson, recently sold a whopping UK£21m worth of stock at a price of UK£21.00 per share. That’s a big dump, and it decreased their holding size by 22%, which is notable but not too bad.
Fund % short change Date changed
CapeView Capital LLP 0.57% -0.12% 14 Apr 2020
Gladstone Capital Management LLP 1.18% -0.29% 15 Apr 2020
Gladstone Capital Management a perma bear on ASOS has dramatically reduced its short since results. They constantly drew attention the ASOS's low margin business, which is no longer the case. To me this is a really positive sign that they are closing.
Another upgrade this morning:
ASOS PLC ASOS.L: JP MORGAN RAISES TO OVERWEIGHT FROM NEUTRAL; CUTS TARGET PRICE TO 3,500P FROM 3,800P
Seriously Alahad or whatever your name is, with all the fundamentals to consider; with all the micro and macro factors you could consider, and you suggest cashing out because a couple of hundred people want to boycott a behemoth of a business, which is at the forefront of taking the highstreet online? then yes, YOU should absolutely cash out, walk away from share dealing /investing, and find a new hobby, you total and utter plank
More importantly another big shop has started coverage with a Buy rating. (Goldman)
They are just time wasters TSOH, I wouldn't waste time replying.
I know that sentiment is everything n'all, but there is nowhere near enough traction on this 'boycott' crap to justify basing any decision making on it.
Also, I don't buy into any of this 'people will remember how wetherspoons/Asos acted throughout this' either. You're giving the British public far too much credit there, as soon as it's time to go out on this **** again, and buy new clothes to do it in, virtually no bugger will care about any redundancies/staff cuts that occurred.
Goldman Sachs Group restated their buy rating on shares ofASOS (LON:ASC)in a research report sent to investors on Monday morning, Borsen Zeitung reports. The brokerage currently has a GBX 2,800 ($36.83) target price on the stock.
Several other research firms also recently issued reports on ASC. Berenberg Bank upped their price objective on ASOS from GBX 2,500 ($32.89) to GBX 3,200 ($42.09) and gave the company a buy rating in a research note on Thursday, April 9th.
Citigroup reissued a buy rating on shares of ASOS in a research report on Thursday, April 9th. JPMorgan Chase & Co. reissued a neutral rating and set a GBX 3,800 ($49.99) target price on shares of ASOS in a research report on Thursday, January 23rd. Peel Hunt reissued an add rating and set a GBX 4,000 ($52.62) target price on shares of ASOS in a research report on Thursday, January 23rd. Finally, Royal Bank of Canada set a GBX 2,500 ($32.89) target price on shares of ASOS and gave the company a buy rating in a research report on Tuesday, April 7th. Three analysts have rated the stock with a sell rating, five have given a hold rating and nine have assigned a buy rating to the company's stock. The stock currently has an average rating of Hold and an average target price of GBX 3,122.50 ($41.07).