Listen to our latest Investing Matters Podcast episode 'Uncovering opportunities with investment trusts' with The AIC's Richard Stone 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.
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’
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.
Thanks for posting Paulleydee.
It's an obvious takeover target however, who knows what kind of offers would be accepted by the board.
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.
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
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
£15? I'm going £25 ;)
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.
There’s no logic or rationale for ASOS to accept £5/6 over a £12 bid.
Comedy gold.
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.
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..
Agreed. No way a bid at 12 will come. That never happens. You're asking for nearly 4x Mkt cap.
Famous last words Al4x.
Patience is a virtue.
Let’s not forget ….
https://internetretailing.net/asos-takeover-trendyol/#:~:text=Asos%2520has%2520received%2520a%2520%C2%A3,price%2520of%2520just%2520%C2%A33.50.
A bid will be worth what someone is willing to pay for it. The current mkt cap suggests failure so basing that as a starting point is a waste of time. This could be worth £12 plus next year without a bid if the turnaround continues which I believe it will. Asos is also down to these levels due to the amount of shorts, they will have to close at some point and I'm sure some will be thinking about it soon with falling interest rates and an improving economy etc. Barker is increasing too which is a good sign.
Yes, it is priced to fail and there is zero interest in the shares, other than from hedge funds. With no volume it is easy to these funds to maintain a stranglehold on the price. This morning is a good example.
However, it is also up to the company to continue to demonstrate that the plan is working and producing. So far, so good but great consistency is needed perhaps to convince the broader market. There also needs to be greater transparency around the plan re the debt - in particular, the refinancing of the bond.
Patience is a virtue...sometimes.
Less so when a stock has declined yoy since covid by well over 90 percent.
That's some expensive patience
Very expensive for anyone who has crystalised such a loss and frustrating for those who have not.
Some of us managed to get in closer to today's prices, however.
Now that the company seems to have changed its reporting to twice a year, we're all going to have to be even more patient, I suspect.
It's no secret that this stock has been trading sideways now for very nearly 12 months.. that shows a lot of stability, and is only a matter of time before it breaks out of this sideways trading range. (To the upside if we return to growth as the BOD guides, including reducing interest rates) this cyclical and other cyclical e-commerce will be poised to breakout. You only have to look at all the updates, though not great they are setting themselves up for the next growth cycle. The SPs of these aren't going down but rather bouncing about. All good signs imo.
Al4x… depends on the individual sp.
I don’t think everyone would be down 90% even if the company sp is.
Patience always wins in the end.