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Famous last words Al4x.
Patience is a virtue.
Agreed. No way a bid at 12 will come. That never happens. You're asking for nearly 4x Mkt cap.
Yeah, I reckon they could well be receiving offers left right and centre around the £5-6 mark, but it's an instant no and the BOD don't need to tell us about those as it's pointless. Might as well wait as KBYK says.. £5-6 will be quite an easy target imo on a few rate reductions and return to growth..
Simon could be right.
And that is why any such offer will be rejected whilst there is a strong prospect of a turnaround.
I don't agree with the Next and Frasers comparisons, however. ASOS is a completely different proposition, for various reasons. Does need to tackle the debt and yes, Frasers is more interested in benefiting from any SP turnaround and/or strategic partnership.
If the share price doesn't move then MA will be forced to take up quite a large number of physical shares soon, which may help the strategy.
Now up to 23% of physical shares in Boohoo.
There’s no logic or rationale for ASOS to accept £5/6 over a £12 bid.
Comedy gold.
In an ever increasing overcrowded market, consolidation is inevitable. Boohoo and Asos continue to be in a precarious position and are vulnerable. I repeat, let's be realistic. If an opportunist bid is forthcoming it is highly unlikely to be more than at a premium of 40-60% (£5 - £6). Rarely does a company go above this. Hotel Chocolate was taken out by Mars at about 100% but that was highly unusual.
Frasers (+ 179% in 5 years) and now awash in cash. Asos -91% in the same period and highly indebted. MA sees Asos as a nice fit to his omnichannel plans. He and Next have got it right and are ahead of the game. The problem is, MA is unlikely to bid himself and probably merely hopes to benefit from an outsider bid, with a view to forming a strategic partnership of sorts.
And why not 😎
£15? I'm going £25 ;)
Would you rather... 'this is going bankrupt' or this will be £1 this time next year?
I've only been here 18 months and I consider that a short term investment so far. Happy to be here for a few more years yet.. it can be fun to speculate over the short term when in actual fact no one has a clue! could be many more years yet before people see huge profits.
So when you say rinse and repeat it has actually only been mentioned over the last 12 months or so which is really short term. But then, the majority now think long term investing is holding for 6 months... imo
See we’re in the “hypothetical takeover bids” phase of the asos share chat cycle. Next up “this time next year it’ll be at £15”.
Rinse and repeat, rinse and repeat
That's the key issue isn't it? What would be accepted, bearing in mind that most shares are tightly held by just 3 players.
As I've said before, I would be amazed if there haven't been several undisclosed offers, in recent times. Long before these sorts of articles began circulating.
Thanks for posting Paulleydee.
It's an obvious takeover target however, who knows what kind of offers would be accepted by the board.
IMO it has been vulnerable to a takeover for a long time - certainly as we all know, they rejected a bid at multiples of the SP today last year was it?
So not sure if they are going to accept less than that number if it comes now.
Maybe they would at least show some respect to shareholders this time, and not keep an offer/offers quiet until a long time after the fact.
Daily Mail, behind a paywall but I’ve pasted the section on ASOS below.
https://www.dailymail.co.uk/money/mailplus/article-13390791/cash-stock-market-feeding-frenzy-ten-companies-ripe-takeover-bid-investing-yield-returns.html
It is 2nd in their list of top ten likely to be facing bids.
ASOS. Current value £426m
Popular among Gen Z and millenials, ASOS has fallen on tough times. With shares down 95 per cent off their peak, Garry White, chief investment advisor at Charles Stanley states “ASOS is now vulnerable to a bid’
Hey guys. What are your expectations of FCF for 2024? I mean Jose tells about 6% EBITDA margin and going from here I thought about a 3% FCF to Sales ratio, looking into the past. That would mean 100 million free cash to start reducing the big pile of debt, almost 700 million. What is your execation?
Glad Barker seems to be having the same experience as the rest of us ...buying what looks like a pretty good price, followed almost immediately by a drop in SP.
He'll probably turn up here soon, complaining about a rigged LSE, useless CEO and good for nothing brokers...
Agreed @Knowbodyyouknow.
It would be good to short track the SP progress, if not then slow and steady it is ;)
Desperado
Https://news.sky.com/story/tycoon-ashley-closes-in-on-deal-for-struggling-ted-baker-13131634
Be good if you could take us out too, Mike. £15 a share ought to do it.
Thanks in advance for taking this on.
KBYK
Agree, I am also a shareholder in Heineken long term. Good to read today they will start investing seriously in renovation of UK pubs again as they see a positive impact of improved UK consumer confidence as cost of living crisis is becoming a less bigger topic due to reduced CPI outlook. They expect more visits to the pub again. People can not stay depressed forever, especially the 20 something want to go out and look great to have fun and find romance. Please also add the recent visit from Xi to the EU, it was made clear to him that we will protect our economies against dumping more and more just like the US. Both trends can be a benefit for fashion companies with their HQ in the west.
I agree. Re boohoo, it’s on track to deliver annualised cost savings of 125 million pounds in 2024/25 and it also forecast positive free cash flow in the year.
CEO John Lyttle said he had "strong confidence in our medium-term outlook".
Last month, ASOS reported a first-half loss but said it expected to report positive core earnings for its full 2023/24 year. On Tuesday online fashion Zalando said it had returned to growth in its first quarter.
Things are looking up.
Hence no crash in SP today.
This will gradually rise now week to week.
The tides turning slowly, nothing too shocking over at Boo today.Both Boo and Asos SP's up slightly.
The convertibles are nothing new, so no surprises there either.The bod have made it known they are addressing that issue.
This is going to turn soon, its pretty obvious.
Oil is way down, and inflation I feel will gap down nicely on the next announcement.
Hate to say I told you so
Just need Investors Cronical too say the same then it’s a sure buy 😁
Poorest research house out there.
Dismiss anything they say.