Member Info for Franalex

I am just telling you how it is. Have a look at the value of intangibles, read up on impairment review and give me a good reason why they can justify them to a suspicious auditor. I thought at the time they were over-paying and am now convinced they did.

Over a long period of time, research has consistently shown that most acquisitions do not add value. Suspect they may have merely supported this. The intangible assets relating to this in the balance sheet look increasingly difficult to justify. At some point expect a big write down. Not saying this justifies to current price but never assume money spent on acquisitions is well spent.

I fear that on the 15th they may be forced to say something about the carrying value of the intangible assets relating to the acquisitions. They may well be asked to carry out (or have already done) an impairment test and it is difficult to see how they could avoid a sizeable write-down. Whilst not a cash issue, it would reduce the asset base which can have other ramifications. This may of course be already built into the current share price.

L2, I have and most have not ended well.

Judging by the number of posters who claim to have “doubled down” at various points from £2.50, there must be individuals nursing huge losses. At IPO I thought fair value was £2.00 and bought when it hit that, and only a couple of thousand shares. Have been caught out once before buying more when it looked as if the bottom had been hit. Unfortunately, the bottom for the once huge Marconi was zero so never again. Hanging on in hope more than expectation.

Roharps even if cash is unaffected a balance sheet adjustment can have huge implications and one of the biggest issues will be the supplier base. If I was the CFO of a supplier, these announcements would have been sufficient for me to withdraw credit facilities and insist on cash in advance. Why would you take the risk of being an unsecured creditor in an administration?

I would like to agree. I went into this share at a horribly high price because of what I saw from my daughters age group. From what I see now, I would not go in even at the current price, indeed at any price. The only reason I still hold is in the expectation that something may arise that I can not foresee and that the falls when they have arisen have been so steep that I have hoped for some sort of bounce that had not really happened.

Jon, Daughter and her friends about to go back to Uni. They have been ordering clothing from ASOS in different styles, sizes and colours, 90% has gone back, how do you make money out of that?

Jon, did that at 2000 and it has not worked well. Falling knife stock and I have zero intention of averaging down again.

High staff turnover. Vacancies do not imply growth but equally not cost cutting as easiest savings are not to replace leavers. My big concern remains what I witness from my daughters and their friends, just huge amount of orders with most being returned.

Accept your point but mine was that despite what you say these boards still had huge amounts of posts saying they were oversold, due for a massive rerating and could not go under. Anyone who suggested otherwise was rubbished. You can still see some of what have proved to be ridiculous comments on some of those businesses boards.

CJ39, that comment is so very true, these boards were full of posters claiming Carillion, Debenhams, Thomas Cook, NMC, Infosys, Intu and many others were oversold and going to bounce back strongly. Individuals should always do their own research and make their own informed decisions, not rely on what are just opinions.

If this is as bad as it looks, then the CEO will carry the can and I would be surprised if he survives regardless of his shareholdings. There will be some pretty heavy conversations going on with the major institutional investors.

CFO only appointed in May this year and may be the reason this has emerged if she asked the auditors to look in detail at certain aspects. If that is the case more likely that CEO will go but suspect there will be demands for far more heads to roll including NEDs.

Not just mates and charities. A lot of staff bought shares at the IPO price and are less than happy at how much money they have lost.

Not that bothered about those given shares but a lot bought at the IPO price, are sitting on massive losses and are not happy.

Yes one of many posts that has not aged well over the last year.

Focus on revenue alone is dangerous in any business. As someone once said, “you can sell an awful lot of £20 notes for £19.50”.

Learned my lesson many years ago on Marconi, the huge multinational that could never go bust, it did. Continually averaged down waiting for the recovery and lost more than I could afford at that time. I am underwater on Boohoo with an entry price of 80p acknowledging it was a high risk share but certainly will never get into the “trying to catch a falling knife” game again.

For second day running another large Boohoo order arrived for my daughters. They tried them on, did not like any of them. Again all returned at no cost and another order placed. How do you make money with this model. Probably explains the price as they are the Boohoo demographic and all their friends do the same.