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Hoping they can hold onto it, personally.
Also, I would be amazed if the BOD hasn’t already received a bunch of ‘highly preliminary / indicative’ proposals/offers, in the last 12 months. But despite the sense these articles give, the turnaround seems to be progressing steadily, so why sell? (if they don’t need the cash to stay alive).
GLA
Topshop is performing very well at Asos based on the update provided. I have no reason to think that Asos will sell this golden nugget. IMO it’s either all or nothing… all meaning… a full offer for the complete company.
If this were to happen, then I would be happy for the money to be used to deleverage and strengthen the balance sheet, but I would also like to see a cash distribution of some sort for shareholders.
That will keep me satisfied until FY25 when we should see the full effect of the turnaround plan manifested.
Article suggests a premium would be offered for Topshop if one did materialise. Exactly what I was thinking.
https://ww.fashionnetwork.com/news/Can-asos-keep-topshop-as-shein-and-authentic-rekindle-interest-,1625532.html
Can ASOS keep Topshop as Shein and Authentic rekindle interest?
By
Sandra Halliday
Published
today
Apr 18, 2024
News last year that Shein and Authentic Brands Group were interested in buying Topshop – currently owned by ASOS – seemed to be just a rumour. But now the speculation has resurfaced and given the well publicised problems at ASOS it could mean that a takeover by one of the fast expanding businesses is more likely.
Topshop
ASOS bought Topshop in the wake of the Arcadia collapse and despite the brand having struggled under the previous owner, it remains a globally-known and in-demand label. That makes interest from big players unsurprising, as does the fact that ASOS still faces huge challenges in its turnaround, despite talking of making progress when it delivered its results this week.
The Times claimed Thursday that Shein is among a number of potential buyers that want to take control of the brand with Authentic also believed to have shown fresh interest.
None of the parties concerned have commented on the newspaper’s report.
It said ASOS is believed to have received “non-stop interest” from a range of high-profile retailers. This further underlines the brand’s appeal and status despite the issues of recent years.
ASOS paid £330 million to buy Topshop, along with Topman and Miss Selfridge, from failed Arcadia in 2021. At the time, its rivals to buy the business included Next, Frasers Group and Shein, according to reports.
Last year, ASOS has reportedly considered selling Topshop in the face of its own widening losses and ballooning debt, although nothing happened at the time, even though Shein and Authentic were said to be interested.
Both of those giant businesses are acquisition-hungry and both have shown enthusiasm for buying UK properties. Shein, for instance, acquired Missguided from Frasers Group, while Authentic is the owner of both Ted Baker and boot company Hunter.
They both have very deep pockets too and would be able to pay a premium price if ASOS was in a position to hold out for one.
It's unclear whether Shein and Authentic would be rivals or partners in buying Topshop as they have existing links with each other. Shein last year acquired an interest adding up to a third of Sparc Group. That’s a joint venture between Authentic and Simon Property Group.
But one big question here is whether ASOS would want to sell one of its top-performing units to a business like Shein that has become a thorn in its side. It’s a major rival whose success is partly responsible for ASOS’s sales struggles in the past couple of years. Anything that would strengthen its rival is likely to be bad news for ASOS.But its current problems may force it to take actio
Not that we are on there but interesting nevertheless.
https://imgur.com/jpFCEhd
Ha ha brilliant.
Shorts are down larcos, you missed the part where it doesnt show shorts until the next day, so trading update, price went up, shorts came down….still gonna beat that same drum now? 😂 hope everyone can make money here, except you, i hope your short burns
Agreed @blabla.
The way I see it, the charts are one useful tool in the arsnal of tools available to investors, in order to make a rational investment decision.
Majority of LTH here have used those tools and purchased their little chunk of the business.
Alls we can do now is dip in and out of those tools to see how we are getting on.
Takeovers ofcourse, can only be surmised upon.
Whether they are likely or unlikely given the situation.
In ASOS's case, given the wealth of Shein and their aspirations to float on on the Western markets,it is very likely of a takeover.
Well said. Come on ASOS !!
For me the glass is half full but yep i am a LTH here for the business thesis turnaround. A bid is not included in that one, could happen like also an escalation in a war between israel and iran can happen with a barrel at 130 USD en macro turns to .... again. How you or the market interprets the trading update is the name of the game. A lot of information is lacking, so I need to fall back on inductive reasoning and try to guess the odds. If you wait for a full proof of the recovery working you are left behind, that is why investing has an element of risk in it. For me one thing is clear, looking at charts and trying to predict the future is a much greater risk. Like a famous math guy once said many years ago, the mathematical expectation of the speculator is zero. Perhaps he is right, i do not know but what I do know is that if Jose and his team keep working like this and get a tailwind the upside to 10-12 is there for the taking. GLA and njoy your weekend. Long asos!
On trading update day the price rose to £3.78, since then we had the H1 results and the price has dropped close to all time low and shorts are up.
The question is - Why did that happen given that (you think) the H1 results / outlook were positive?
Calaramonte needs to go
@roberto - the price at close of play on 25th March was 3.46 so therefore it’s higher not lower.
Happy to help. Facts matter.
All of us are factually correct but you my friend are comparing apples with oranges.
According to your warped logic if a share price is at £2 , then rises to £4 after a trading update but then falls back to £2.50 . In your bizarre world this apparently means that the price has fallen 😂
Get your facts straight ppl
The trading update on 26 March. share price closed £3.78
Correct Khelder, as illustrated by my first link in my other post
RobertoLarcos - “ The price is lower than it was after the trading update”
The price is actually higher than it was before the trading update.
The market has spoken, wake up.
I only stated FACTS... but some people on here just can't accept it (or any other opposing views)
YOU started it ;)
James seriously... how old are you? The price is lower than it was after the trading update
The market has spoken, wake up
@Roberto I think you're a little mistaken.
Please see below links for how.
First links shows time of update price v today's price.
Second link shows what I call 'a Roberto pattern' possibly forming.
Good luck kind sir x
https://ibb.co/ngFPNLT
https://ibb.co/DwmVr4j
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.
2 days following the so much anticipated H1 update, share price is down & shorts are up
Wishful thinking Celtic
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.