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JonHarris what will plunge further - your feelings, profits or the SP? Perhaps ask Mike...
2 days in a row that buys have been way more than sells.
Curry drop is just fear mongering, and short sighted.
If Asos fails then there is little hope for any fashion retailers.
And if Mike Ashley doesn't use this moment to buy Asos, then he is knee capping himself after spending the money to buy isawitfirst, misguided.
Add to this that Fraser Group just offered to buy MySale, so the this is a moment of acquisition and mergers across the fashion retail space.
Just a forced drop due to inflation numbers and CFO departure. No real surprises with the inflation numbers and stated sometime back that the board will be reshuffled. Broker sell rating same as last month (never really pay that much attention to Brokers) looks to me a opportunity to flush out a few PI's happened a few times over the last few months. Directors buys £500k around this price . Energy in fashion atm but retailers will have their day again. GLA
Go on fireblade, what other better opportunities are there? Really hope you say oil or bed bath and beyond.
Surely this could easily double with a year from current price? I believed one of the main issues reducing profit over past year was increased shipping costs which are now on there way down.
The other point is that auditors are all over companies at the minute with a lot of power and very very risk averse - even getting through the legitimacy of £1bn stock could extend the audit from usual timeline. Either way this has many red flags. Mr Jon I am sure you are a lovely block and without sounding patronising keep assessing investments and downside risk - which this has a lot. As I said before if pre tax profit only £20m and net debt ends up being £125m (all extremes of guidance) or worse … this one will have to raise funds
.....And the turmoil continues. There's always something going on with the heirachy of ASOS. First it was months without a CEO following which there was an uninspiring appointment. Now the CFO is going. No wonder themarket has acted negatively. I mean, the state of retail generally is bad enough without these acted factors.
ShearClass, your comments are largely spot on. The company could be in distress over the next 12 months, eating through a lot of cash. Holding masses amount of stock is old school and not financially astute particularly in the fickle fasion trade. As for Mike Ashley, we all know his Modus Operandi is to put in a last ditch offer when a concern is in or facing finacial distress or administration. He's a bargain hunter and has simply tipped his toes in so that if things go pear shaped, he's ready to pounce. Anyone who thinks he will put in a sensible offer now is, in my opinion, living in cloud cuckoo land.
Mr shearclass - correct on every level - a long way from where Ashley buys businesses. Asos with august year end now shortly need to tell us how trading is their big net debt number and importantly how that £1bn pile of stock has gone in a tricky market now over 100% of market cap. Auditors are super hot on this area and especially at minute. As I have said before maybe new ceo will find a golden bullet OR will he find stock skeletons … fire brigade on standby !!…
The board have a big regulatory duty to tell the market if they are not on track … if I am right this is a rescue 500p fundraise at best.
Jon, please take a break from baseless speculation. I don't doubt this has excellent value at a sub- £8 entry. I might even get back in here at those prices, I was frankly relieved to be out of this share even with some loss.
If a fund puts a bid in for £2.3b, the the BoD could be forced to accept.
This is exciting, just waiting for the takeover bidding war to start
8k hit here but getting it back in wizz and thungela
# Trades 846
Vol. Sold 100,785
Sold Value £911,345.24
Vol. Bought 144,880
Bought Value £1,310,753.49
Someone said a while back they would wait to get in at £5,looks like they wont have long to wait?..
So CFO left big deal. 8% drop more attached to UK inflation and as usual ASos gets an exaggerated fall. Be up to a £12+ again soon enough then rinse repeat. All rather boring really. Volumes should start picking up next month hopefully share price will settle. MA stake building take overs etc just wishful thinking.
RevB are a tin pot makeup brand.
Asos are one of the most dominate and established online fashion brands.
They are just not comparable with market reach and opportunity.
As it stands Asos could be acquired for less than £1b, which is insane. Mike Ashley is a smart guy, he will see a massive opportunity here, as it takes about 5 years to really established an online brand, so by buying Misguided, isawitfirst, and Studio Retail, he has removed some direct competition therefore he can capitalise with a dominate market position in terms of driving customers to him and strong arming fashion vendors to better deals.
Fair market value to pick up Asos now while the price is so low would be £2.3b
Why are they a different kettle of fish in the short term?
- CFO's of both companies are leaving / have left
- Both companies have moved from a net cash to net debt position
- Both companies have significantly increased their stock / inventory balances
I see the building inventory to reduce the potential impact of supply chain disruption as a dangerous game for fast fashion, how much of this excess stock will need to be sold at a discount?
In my opinion MA won't touch it until it's in severe distress, that's his MO.
You can't compare Asos to RevB, different kettle of fish.
Maybe Matt Dunn did a bad job, and he's been allowed to exit gracefully, that could equally be an answer his for departure.
And with regards to Mike Ashley, I could very well see him buy Asos as a way to final solidify his position.
Asos are the jewel in the crown, and he will need to act fast because the sharks will now be circling.
I sold out here (at a loss) to go in on RevB and average down my holding, looks like it may well pay off.
It is absolutely justified, it adds significant internal uncertainty at a time of maximum market uncertainty. I'm waiting for a further 50% fall before considering a purchase here, just look at recent events at REVB - big buyers don't get interested until bargain levels, those haven't arrived yet for ASC IMO.
25 pounds seems like pipe dream cant believe it .
sp fall today not justified - interim ceo was always going to leave if passed over.
Jon - it is not happening so can we hear your views on today's RNS - that is reality
The more I think about it, the more it makes sense that Mike Ashley should buy up Asos now while he can for such a relatively low price.
With acquisition of isawitfirst, Misguided, and also Studio Retail in February, he has consolidated some of the pureplay online. However the jewel in the crown would be getting Asos. All those other brands are lesser in scope and appeal compared to Asos.
Asos being integrated to Fraser Group would be the leading fashion retailer.
He can then offset the 4 online acquisitions with the Fraser Groups physical retail presence of Sports Direct, Flannels, and House of Fraser, for a total channel fashion retail network.
He recently sold off a lot of retail locations to refine their locations, reduce expenditure, and make some money back into cash flow (£205m made from property sale).
The combined business units of all these companies would be refined to find shared service cost reductions.
Fair value for MA to acquire would be rough previous year based on potential recovery, so £2.3b would be a considered acquisition price
Because that last sudden fall created such a large opportunity and that it was genuinely insane to see the company price had gone so far down.
Agreed so why only 2 months ago ?