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I am merely giving a reason why the share price has been in free fall. It is industry leading on returns, it has to be given the amount it gets. Lost a lot of money on this when it looked to be the future but based on what I witnessed, I have made far more than I lost by following it down from £20 using IG Index. My last position is set to close at £3.25 and unless they issue something positive I am pretty happy to leave that in place.
A disaster but predictable if you look how their main demographic use them. As I have posted before, my daughters and their friends use them as a changing room. Order large amounts and return almost all. The end of year prom was typical, between them they ordered several thousands of pounds (pretty well all from ASOS now) and returned every single one and bought their actual outfits on the High St. That business model can not work and has been reflected in the share price for a long time.
Just when you hoped the era of dire results was behind us, along comes this set. Even leaving aside the inevitable kitchen-sinking of a new CEO, they are pretty awful. Next thing we know is that some bright spark will suggest a share consolidation to make the price more attractive to the markets (look how well that worked for Diversified Energy and Renewi, to name just 2].
Admire your bravery. Did exactly the same many years ago with Marconi, the industrial giant “too big to fail”. Ended up losing far more than I could afford at that time and have never chased a dramatically falling price since. Hope your fare better than I did,
Agree. Holder for over 20 years and think I will attend the next AGM and ask the Board to provide some evidence that any of their actions since the Carlyle bid (£20 plus in todays terms) was rejected have been in the best interests of shareholders. The share price and dividend policy suggest the market thinks not.
Worya,
With you on this as did fair amount of research before investing. Unfortunately when I see an RNS like that posted this morning, my mind goes back to almost identical releases from the Board of former FTSE100 company, NMC PLC following a collapse in share price. Still scarred from that experience which never got the coverage it merited due to Covid but this board was full of optimists to the very end.
In addition, Next is a much better run business than ASOS, with both High St presence and a good online offering and not burdened with a demographic that orders large amounts only to return most of them.
Only about a year ago someone was posting to sell both BP and Shell and buy these Shares as a lower risk option. Wonder what his view is now. I have got all 3 and wish I had got out when they announced the share consolidation as it has never worked well for me. Divide both Nat West and Renewi by their consolidation multiples and just seems to provide an option for bigger price falls.
It is their business model that results in this behaviour which is absolutely their responsibility and a major reason why their shares, once over £60 are now struggling to hit £4. The model has a major flaw that they should have foreseen.
Getting my seasonal reminder of why this stock continues to struggle. Daughters and their friends once again ordered a large amount of items to try on for Christmas parties. Every item gone back. You can not run a sustainable business on this behaviour from you key demographic group.
“Come back in 12 to 24 months”
I remember someone posting exactly that comment a couple of years ago. Anyone following that advice would be in for a nasty shock.
Their business model has looked flawed for years. As I have posted several times before, I watch my daughters and their friends buying hundreds of pounds worth or clothes in various sizes and colours, trying them on and sending almost everything back.
Lost a lot of money on this a few years ago when it did look like the future but sold, took a big loss and then followed it down from £20 using IG index and made far more than I had lost. My last position closes at £3.20 which now looks distinctly possible.
Bit like deja vu from Carlyle bid in 2010. Share price fall shows exactly what the market thinks about the Board’s ability to deliver value over and above the Macquarie bid which seems to be off the table. Good luck with the AGM, if you are lucky enough to get to ask a question the answer will be waffle about what they plan to do. History suggests it will be a long time before £7 is seen again unless another bid emerges.