Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
For me ASOS is so much more than just clothes. It's about ethos, integrity and innovation. Appointing an outsider (despite more experience) could cause a culture shock within the company. Future growth in this sector is so heavily contingent on ESG. My exposure to the new CEO comes from the Capital Markets Day. I've listened to a few interviews from the previous CEO and Jose has very similar characteristics to him. My view is purely qualitative, however I feel confident that the new CEO will preserve the integrity of the brand. Future growth will be helped by macroeconomic conditions, however in order to have a successful business for the long term is heavily impacted by ethics in this sector.
I have full faith in the new CEO and sector for the years to come. Would look to add to my position if we reached the £8 mark again.
Could pose a risk to earnings. Retail numbers are still strong, however if demand falls ASOS runs the risk of having to write off stock, impacting margins. Supply chains returning to pre pandemic levels.
Yes, I actively manage my portfolio. I'm currently up ~35% on my initial investment. I'm looking to rebalance capital to other opportunities at the moment, as the risk is too high on this investment at this current time.
Low liquidity, high volatility. Locking in some profits and going short. Macro uncertainty is high, esp with NS1.
Fixed Income is pricing rate cuts by the end of H2 and inflation to have peaked already. This is exactly the kind of situation I like to buy into. However, there will be bumps so I will buy into fear.
Retail sales were positive for fashion items. WTI falling will help to cool inflationary pressures for producers and will ease the pressure for rate hikes for Central Banks. Tax cuts on the horizon from Tories which is a tailwind for UK Business. More reasons to be positive than negative here.
Thought I'd weigh in with my thoughts about the share price. First of all the shorters do not hate you guys, I've been short Boohoo since March and this is purely a play on higher inflation / rising costs of living.
Second of all, I see lots of negativity here and I'm not sure why. You have the opportunity to buy a good business trading at a discount to intrinsic value. Retail numbers show that fashion has remained strong despite inflationary pressures. Inflation is largely supply chain driven and will trend down with time. Demand destruction will hurt risk assets, but the business is well placed to manage demand with product mix. Opportunities in the US mitigate lost revenue in the EU / ROW. Added to the mix, the current political situation appears to be throwing tax cuts into the mix, providing a tailwind for UK business.
This is the time to buy guys, keep an eye on inflation and interest rates but I'm looking to move from short to long here and average into a long term position.
Thanks. Keep an eye out for the US attempting to cap Russian oil. Could result in retaliation and oil going even higher.
The issue with oil in the UK at least is a refinery one. We can import oil, but lack the infrastructure to refine it as we have outsourced it. Therefore, even if oil falls, supply chain bottlenecks with refineries and market structures cause me to doubt if oil (at the pump) will decrease in the near term. As for the refineries, many were hit extremely hard by the pandemic and have used cashflows to simply remain afloat. Investing in oil refineries isn't exactly the most popular policy given ESG and the sector suffers from underinvestment.
On ASOS, I like the business and I have a position around the £8 mark. Although the consumer may struggle, ASOS can leverage their existing product mix to mitigate demand fluctuations and I'm happy holding for the next 5+yrs. When the Pound and inflation returns to normalised levels, I'm confident that the SP will rerate to fair value.
In order for energy to fall demand destruction has to occur (unless OPEC increase supply / Russia - Ukraine conflict ends). By the nature of supply issues easing the consumer will be adversely impacted. Is this simply a zero sum gain for ASOS?
How does Crude Oil correlate with ASOS?
Currently doing due diligence with the view to open a position. Can shareholders elaborate on this question, 'To what degree does product mix / brand differentiation protect BOO from cost of living fluctuations in demand?'
Thanks for any help