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For the new investors, what happened with the Interim Results, is that the MM and funds used this to shake the tree to get shares cheap.
MM/funds/Shorts know that new and weak investors see red, get scared, and sell.
Older and wiser investors know that the Interim Results were to be expected, and final confirmation of move back to a profit-making.
The exciting ride back up about to happen:
Shorts will be desperate to close and realise profits
Funds will be looking to buy up to hold for long-term sell back into the market.
Gates are open for a takeover offer, while down here making at 1.5x offer could force this.
Heres something that would be a return of the ture King:
https://www.thetimes.co.uk/article/anders-holch-povlsen-in-line-for-90m-from-numis-sale-jsvsns6dv
Anders Holch Povlsen is in line for £90m from the Numis sale
so we could just buy back 18m shares, taking his holding to over 40%, and make a formal takeover offer and merge Asos with Zalando
The results were expected, the BoD had already said they would be writing down alot of stock, this is why there was such a big loss from the adjusting items.
secondly, Asos business was in line with the market and macros, and if anything its great to show they have consistant business, and moving into a position now with improved profit margins, meaning they will start to yield better return on investments.
For these reasons, this is why A) its a major takeover target, and B) a bargain at this share price.
CEO Said no more shares issued for the foreseeable, and the company has a great debt facility.
As such, this gives a stable long-term view to investors.
Will expect that between close today and open tomorrow, every and any free share will get eaten up, and the shorts will be pulling all favors to close out their positions now while they can during this low point.
appears that investors are already steering clear of Asos due to the high short position and the MM games.
the irony is that Asos has indeed become the main fashion retailer in the UK, growing in the EU, and big growth of the TOP Shop brand in the USA.
I expect everyone is now holding their breath ready for the May results.
i've made my profit, and my last holding of this share ive set a sell position in the 600's in case of disaster.
I hope the major holders finally capitalise on this low share price and F the shorts in the A.
@Retec, part of my day job is contract compliance and tender reviews, also I'm a trained social-economic specialist.
There has been a noticeable increase in reviews of legacy contracts connected to terminations, and new contracts being drawn up within UK Public Sector organizations having more limited liability with break clauses.
Secondly, I've connections in various local gov orgs openly discussing that the constriction of budgets is increasing.
It's the cycle of corruption, a few years of a feast with everyone in the cookie jar, and once it's been depleted comes the famine.
This is why the UK government was letting so much migration to happen over the past 5 years, it's an accounting trick to flood the market with bodies to create a high-capacity connected economy, however, this has failed as the vast majority of recent migrants from MEA regions are economic leaches which are draining too much money out of the public purse.
We can see this pattern emerging in Sweden, Finland, Spain, Italy, Netherlands, etc... the gamble that the migrants would help to float the economies has failed and it turns out the reason that MEA migrant's homelands are so bad is their people's cultural faults. This is why the UK gov gave Hong Kong people visas and tried to get more Indians in now, as these groups are more economically beneficial and culturally stable.
It would appear that the next big cash cow for Capita and Serco will be increased security contracts, and the removal of migrants, as the public will support this, therefore being a billable item is easier to swallow.
The difference is, ASOS carries a lot of third-party brands as a retailer, and this gives them market position power over Boohoo and Shein.
Boohoo and Shein will fall out of fashion, however with Asos carrying lots of brands this always has something in trend.
Also, Boohoo has one family in control that is not trustworthy, making expansion to foreign countries difficult, and Shein is operating out of China making their customer relations outside of China limited.
Also, a lot of fashion brands have moved to direct-to-consumer, or they want a big retailer like Asos.
This is because Asos act as a distribution partner, able to hold stock and pay the fashion brand vendor upfront, so the fashion brand gets money in the bank rather than waiting to sell to the consumer.
Asos use this position of power to get better pricing and increase revenue.
Things do not look good for Darktrace when their main value add proposition (i.e. AI) is now becoming ubiquitous with their rivals.
Alongside that within B2B world, Darktrace are hitting a plateau with growth slowing quickly.
I would expect some pre-ipo holders to dump soon, if that happens this could drop a chunk fast.
looks like a lot of government contracts are getting pulled due to financial concerns.
these contracts have penalty clauses, however, this cost less than keeping the contracts.
As the UK Councils are basically been run in a mafia way for councilors to filter money into their mate's pockets, this has created big black holes in the public purse which the next years the government will need to plug, meaning fewer new contracts.
shave off about 15% of this share and we will find a new floor.
the past 20 years have been cheap debt with the base rates being so low.
now that has gone, the economies have been shocked as the realisation that little actual money or profits are in the market systems.
the banking sector will get another shock within a few months as the housing market collapses.
looks like the initial drop all the "cheap" shares got purchased, and then sold over the whole day at 20%, hence why the share was locked at around 100 from 10.30am.
Looking at the forecast for Tech Shares, we are due to another major crash.
The problem with the tech sector is that its way over-saturated nowadays, and most major updates to tech infrastructure got done over 2020/2021 due to business operation changes.
Between now and August, we see more massive layoffs and profits warnings.
Why Asos will be the dominant fashion retailer in the UK/EU and growing the USA:
1) Death of the high street. Rents are too high due to overbearing landlords. It only appears to be money laundering operations now opening stores (barbers, American candy, etc... you know what i'm talking about).
2) Fast fashion is here to stay. We had a moment of some ethical consideration, but the truth is people would rather look good (especially in the age of social media), over actually helping people/environment.
3) Customer engagement and product distribution networks. The digital age and modern 3PL have the best consumer traction and fit to on-demand lifestyles.
4) Market and trend flexibility. Being able to pivot to the latest trend to ensure desired products are stocked, and out of fashion is not dead stock with overproduction.
5) Asos is now a legacy well established brand. With a massive integrated customer base, and the first place people go to look as a marketplace, Asos have a very powerful grip as a reseller of brands and now their own Top-Shop lines.
The fact is since the 1950's the consumerisation of the public has been the biggest paradigm shift in culture.
And Asos has become an institution to this, just like Mcdonald's, Starbucks, and Netflix.
saga is turning the ship to better waters, looking forward to the annual report on the 4th April.
Looking at web traffic they are doing very well, and if this reflects in holidays and insurance then expect a nice jump from here.
good call from @KarlTaylor, bang on the money. Liking your thinking over on the saga share too.
@Grimrip44, maybe an apology is in order?
surely this is a takeover target again with the price down then?
BEAR HUG
BEAR HUG
BEAR HUG
bail out confirmed, bounce inbound
everyone is getting played with this current "crisis".
time to take that shirt off your backs
the whole banking sector is either so toxic that it will also implode.
OR
the whole banking sector is over populated with complete morons, as banks fail more than any other industry
Karl's crystal ball was working well:
To quote: KarlTaylor on the 24 Feb '23
"thats what i'm saying, there is a big dip is coming, the city (LN/NYC), are about to drop the whole market, be ready "
oh, this is a great time to load up and make an easy profit.
Saga is getting great revenue, within lockdowns spanning 3 years, the over 50's and retirees are flocking to holidays to make up for the lost time.
the company has confirmed they will be in profit and have a solid business.