The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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:
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 Members are members that have a premium subscription with London South East. 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.
Not if they are writing it down ! (The £1bn stock!)
Ammu, more than happy to see a blue day. Just trying to keep a bit of realism about this one.
Ahh the Ubik all vocal when SP is red.....disappears on a blue day......
It matters a lot. If they get stuck with old inventory, that they can't sell except at blowout prices, it impacts profit. The market is a weighing machine at the end of the day, and all it cares about is top line results and future growth.
Doesn't matter if they have too much inventory.
The fact that as an industry it's difficult to get merchandise made due to various channel constrictions means that Asos can slow sell into the market and maximize profits, peaceful in the knowledge that their competitors don't have merchandise to hand to compete.
Everyone selling at the moment are getting roll.
Fair value is still in the £2b for this company. I hope a big fund or investor comes along and whole sale buys up the whole company over the next couple of months.
There's some danger of a bullwhip effect, with them left sitting on too much inventory they can't shift. I fear RevB may be staring down that issue right now.
ASOS is a massive brand and I agree all the stock that ASOS has already bought should help with profit margins on the next update............
Fair points. £25 would be a fantastic recovery from here and make anyone buying now a very good profit.
With regards to having stock on hand, that would be a good thing. The issue facing the industry is lack of product, that is why Asos forward bought so much product. What this means is they are in a strong position to service a constricted industry, and also because they have already spent the money which showed has a large net debt it means that the tradings of June July August they should yield more profits.
However to your point about being a big player, I think you really do not understand the new fashion retail market. Asos are THE dominant player in this space.
Boohoo and Gym Shark are the brand side to disappear as irrelevant. However Asos are king queen and country.
I'm thinking in the region of £25.
I think the next update will be a harsh reality check, and ASOS may have too much inventory on hand. I don't doubt they are a big player and are here to stay in terms of fast fashion for the younger audience. However, this is consumer discretionary / retail and I think we're going to take a hammering for at least the next 12 - 24 months. I think we are realistically looking at 2 years to get back to anywhere near the mid 20s for SP.
If you are long, fine... but I really don't think we are looking at a fast recovery.
What exactly do you mean by real sp recovery?
In the 4000 or 5000, sure gonna take sometime and a massive market upswing.
In the 2000 to 3000 very easily with a few months.
You are all getting rolled to sell so cheap, do you not understand how much of an essential fashion retailer is to the UK, with growth in EU and USA.
Utilities, food, and clothing. Always guaranteed customers not matter how bad the overall market is doing.
Not sure one thing equates to the other here, and still firmly believe we'll be waiting a long time for any real SP recovery.
1.4% of all Asos stock was traded between 16.30 and 18.40 tonight.
That's a lot of share changing hands.
If you sold for in the past week then you got rolled by the big boys, because this share is gearing up for a bounce back into the 15's, with fair value of 20's.
If you think that Asos are going down, then best short Tesco's and BP, because Asos now have a secure seat at the major infrastructure table with those cemented and solid institutions.
It is the closing auction ! Big trades all stocks every night - when the index guys put their orders on
I wonder what this is , some big trades held back till the end . Hope it opens well tomorrow.