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Good post sj74.
Jamesss - I’ll try and dig out an article or two when I have a moment. It’s not a conspiratorial complaint - there are some real problems with the LSE which need pressing attention.
We are all here because we think it will go to expectation. Return to growth this half. September onwards improving margins and earnings and revenue growth. A lot of the hard work is done, rightsizing stock and improving balance sheet as well as a faster more agile business. If there is going to be a takeover it will be this year.. if not we get the full turnaround and gradually improving updates with the business becoming more and more valuable. The Market Cap won't stay This low, market pressures will eventually take hold. :)
Separate point, 60% of stock is now being sold at full price.. a lot of that could be from March onwards which won't show on the margins/revenue until second half reporting.
Whilst the turnaround is ongoing I'm liking the longer reporting procedures, it gives ASOS a lot more to report on when they do report and show significant progress being made.
I suspect in FY25 going forwards newsflow will start to become more frequent again.
Cheers @kYK
And I agree @notout, if they're refused London floatation then there a very real possibility of silly prices being paid.
If the turnaround plays to expectations then, then longer they leave it, the more expensive ASOS will become.
I don't think they can float in the US so London is a possibility.
I think 4 to 5 times the price is achievable and most holders would go for that but what the 3 big holders want is another story, but perhaps they would like a stake in Shein. All we need is one party to make a move and many more will come crawling out of the woodwork. The risk reward is looking decent here especially with so many hedge funds shorting.
“Why do we think the London Stock Exchange is not offering fair value and how in the world do we fix it?”
Numerous articles documenting the struggles of the exchange to value dynamic tech-based companies - particularly those orientated to growth. I’ve posted a bunch of these before (probably find some links looking at my posting history). Not sure the US is the solution necessary. There’s a review of the London markets taking place at the moment in an effort to modernise. Hopefully may make some difference - here’s to hoping.
@100notout
This is my thinking and along the lines of something I've suggested myself on here.
Buying ASOS is a drop in the bucket for them, even if they offered x5 the current market cap.
All the brands they would get aswell as a listing on London.
@knowbodyyouknow I've heard this mentioned many times now.
Why do we think the London Stock Exchange is not offering fair value and how in the world do we fix it?
Asos could float over the pond on New York stock exchange maybe?
Can’t see them listing in London, personally. It would be a disaster for them - from a value / business perspective- unless, of course, there’s some kind of CCP motive driving the listing.
If Shein are seriously considering listing on the LSE and are interested in acquiring TS then surely it would make sense for them to consider doing a RTO with ASOS. It would be cheaper and quicker for Shein than doing an IPO and there are many advantages going forward.
It would be interesting to know what the figure would be and what it would do with the SP.
The articles crack me up, you would think ASOS is about to enter into administration the way they go on.
I wonder how much has been offered for Topshop. Ultimately I think the right decision is to hold onto the business. It’s the jewel in our crown. That said, ASOS was successful long before it acquired Topshop. I think if the price is right it could be worthwhile exploring a sale. SHEIN appear to have bottomless pockets (if appearances are as they seem) and regularly make decisions at any cost. Perhaps a silly offer will be tabled that simply can’t be refused? Interesting either way.
Https://www.theindustry.fashion/will-asos-hang-on-to-topshop-as-shein-and-abg-encroach/
Will ASOS hang on to Topshop as Shein and ABG encroach?
CHLOE BURNEY
18 APRIL 2024
ASOS continues to receive "non-stop interest" from high-profile retailers, including Shein and Authentic Brands Group (ABG), to take Topshop off its hands.
ASOS, which is in the midst of a turnaround plan, was last year reported to have been considering the sale of Topshop to help cover growing debts, however, this never came to fruition. Now, it has garnered fresh interest from ABG and reignited interest from Shein.
The e-tailer purchased Topshop from the administrators of Sir Philip Green’s collapsed Arcadia Group for £330 million in 2021. At the time, it beat the competition, including rivals NEXT, Shein and Frasers Group.
As one of ASOS' top-performing brands, Topshop is considered a "valuable asset" within the retail industry.
Despite turning down previous offers, ASOS may reconsider as it falls deeper into the red. In 2018, the e-tailer was valued at upwards of £6 billion, which was more than rivals Marks & Spencer and NEXT. However, its shares have since fallen by 94%, in contrast to NEXT'S which have risen by 71% during the same period.
Just yesterday, ASOS published its financial report. The company revealed widening losses after half-year sales plunged by nearly a fifth as it presses ahead with "necessary action" to turn the business around, including the appointment of a new CFO. It posted underlying pre-tax losses of £120 million for the six months to 3 March against losses of £87.4 million a year ago.
Shein’s renewed interest in Topshop comes as it proceeds to expand its presence in the UK. Last month, it opened a debut pop-up shop at Liverpool ONE. This comes after the company recently opened a hub in Manchester, which is the home of the UK fast fashion industry, housing HQs for the likes of Boohoo and In The Style.
Shein recently made headlines for being in talks to list an IPO on the London Stock Exchange. It was initially reported that Shein was in talks with London Stock Exchange bosses at the end of last year. Should it go ahead in London, the Shein float would be one of the biggest blockbuster IPOs in the UK in many years.