RE: Superdry Results7 Oct 2022 22:40
the lower the price goes, the more it will spring back once the results are out next week.
with the results out, that's all the current news available for understanding the company finances.
We all broadly can see the market for the next year, so having this final piece of information assists with knowing the currently expected market cap, however, this is only based on a downswing market, and as such, we should also consider the potential market cap based on an upswing market, as an upswing market is the next phase of the global market as we have just traveled through a phase on constriction.
However, looking at production reports at a fundamental level, we are starting to see an adaptation of the current geo-economic landscape as businesses and countries learn to optimize and evolve current financial, raw material, and energy supplies and transactions.
The rates of inflation will start to reduce once the flow of cheaper goods returns to the market.
With the added driver of purchase volumes increasing based on the releasing bottleneck caused by constriction, and the products that people have put off purchasing they are then acquiring. This creates a combined overall larger increase in purchasing and spending across multiple industries and injects cash back into the population and economy.
once the financial news is out and the expected floor is reached, the shorts will have to close as realistically nowhere else to fall.
I doubt a share issue will happen, as having a small share pool is favorable to the main shareholders, also Asos would be wiser to issue the share when back at a higher level to issue a smaller amount and make an equal amount of money.
Asos has now:
Re-launched Top Shop with an already well-engaged audience and consumers
New management for sportswear and a new drive to grow that space and a relaunched high-end lady's wear.
Asos have a ready-built channel, as such, they just need products on hand a wait for a time when the macros change and public purchasing increases and returns to nature levels.
the benefit is that at this time of reduced flow, Asos can spend time reviewing the business and implementing better operations, cost reductions, and streamlining, so that once the higher normal rate of business returns they yield better profit margins.
The company has just gone through a major management change, and it takes a few months for learning and changes to happen, by this point we will start to see the new steer of the company.
To summarise, buy low sell high.
Markets are cyclical.
Macros affect all organizations.
Rising tides raise all ships.
DYOR GLA
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