Member Info for JonHarris

Major sells dried up and they are still trying to buy available free stock. Enter the FTSE250 so will see a rush of funds taking position.
Looking good for a return to 10's by mid next week, easy money from this current point.

The worst of both the news and market has already done all the knock down to the share. However Asos moving into a far better commercial and strategic position with a market dominant position.

Fair value on low estimate is 12 with a high potential of 20.

Look at the buys and sells. No major sells, and lots of topping up and consolidation.

There will be some funds that have waited weeks for this moment to massively average down.

Last chance to buy here, the market has done it's worst already and yesterday was a final kick by the shorts.

Major holders now hold 65.85% of the shares, and with the price so low could see this topped up to 70% to consolidate both their prices and the available free shares.

This is getting very exciting, as the drop yesterday was an extreme knee jerk to a share price that had already levelled out to the fair market value in the mid 12's.

The next week will be very interesting, and easy to see shorts lose the chance to buy the share so low.

When the price is the lowest it's been since 2010 the incentive to buy chucks of the company to sit on for mere months to make massive profits is obviously

Massive opportunity here, the shorts could be in serious trouble with days if the majors start loading

Asos know who all the time wasters are, and they are working to put better guidelines in place to stop these time wasting shoppers.
Alongside this they have done great work on their Marketplace, and growing their "vintage" division.

Overall Asos are in a very powerful position and without doubt the most important fashion retailer in the UK with a very fast growing US business.

In terms of the US Asos are head and shoulders above their competitors. The main reason is that US fashion retail is still stuck in the 70's and have not moved with the online times. The US youth are more inclined to shop online and given the large geographic areas of the US, shopping online is the only option for millions of Americans.

Get ready because Asos are about to gear into their next age as a mega company

Speaking to some senior people in Asos, what they are saying is that alot of the returns tend to be low income households and fickle people, essentially removing pointless business:
As such:
A) Asos new minimum order threshold has only just come into play and is already starting to stop needless purchasing and returns.
B) by stopping needless purchasing and returns it also means Asos themselves can be better at forecasting and buying product, making their whole system more lean and better responding.
C) it actually improves relationship with customers that spend and keep, as by removing time wasters Asos can focus on real customers.
D) Asos already starting to see improvement in their margins due to the overall decrease in wastage

The issue the shorts face now is they are an easy target for other funds to attack. By raising the price this forces the shorts to close or they have to continue paying premiums and not realise profits.

Considering the market conditions, having free cash for the next year will be a massive concern for the shorts.

All it takes is one hedge to buy a big stake and the shorts will scramble to buy what they can be the rise.

The fair market value of the company is closer to £12 a share even looking at the worst profit situations

The shorts will be desperate to close with 2 factors: a) before the other shorts close and rise the price, b) close in a way to stop a spike.

However looking at the sales data the shorts are actually in a sticky situation, considering only 1% of the stock traded yesterday and it dropped so much, with a 2% buy the stock will jump back to 11.

As such this will turn into a scramble by the funds and shorts to close before they get locked out of this share being so cheap at the moment.

Add to the fact that there is over 6% of the stock that is now in over 35% profit, there is a massive incentive to close those shorts positions while the stock is down before the rise back to 10's

Talk about a kicking!
And to think from 2010 they have gone from niche to one the most dominant fashion retailers.

The company could be bought for a song and in a couple of years be worth £6b again very easily.

Exactly @sharbel, all the sell are weak hands and the scared, no real money sold told as they know this is way over done

I kind of what an acquisition to happen just to burn the shorts

Yep, if man city stops wages for a year they could afford to buy Asos at this price.
I expect takeover sharks to enter the water, hover this up and wait for a couple of years to come out of recession.

What a massive joke this drop is.
Asos now only worth 3 X the yearly wage if Man City squad, how is that even possible!!!!

Only 2% of shares traded and it dropped 30% in a morning, this is on adding to a fall of 45% that had happened over the past six months, making a total 6 month fall of 64%

Utterly ridiculous

The things is, valuing asos on the margin predict is pointless. The true value in this company is their massive client based and infrastructure.

Keep in mind, Asos really one of the few power house fashion retailers now, and hold a very strong position.

And even in a recession people still need clothing, so revenue will be locked in.

The pull down is clearly market manipulation for the shorts to close out. This is ridiculous.

I feel sorry for all that panic sold or have their autos triggered, this should bounce hard with the shorts closing position while they can as they can't guarantee the price will stay down here long

Corrected autocorrect:

The wild things is the RNS said they will still be in profit, also they said they had had alot of returns, but that was already anticipated, as their minimum purchase threshold policy has only just come in action which is in place to stop needless returns.

As such looking at post summer, and back into the autumn winter sales period, they in theory should track higher profits than they are suggesting if growth is still in line.

The wild things is the RNS said they will still be in profit, also they said they had had alot of returns, but that was already anticipated, as they minimum purchase threshold has only just come in action which is in ace to stop needless returns.

As such looking at post summer and back into the autumn winter sales period they in theory should track higher profits than they are suggesting if growth is still in line.