Member Info for JonHarris

I'm sure there will be further attacks on this share price, however seems like their is no major sellers left, and big potential for massive buyers looking at the state of acquisition and takeovers at the moment.
This share is the lowest since June 2010, and a whole lot has changed since then, with a whole generation only knowing online fashion now.

Putins head is on the chopping block, all of his billionaire entourage are global pariahs and looks like they will step in to remove him. Russian history repeats itself a surprisingly large amount, and everything happening at the moment smells of October Revolution again.

Secondly, the thing that is destroying the economy is the increase in energy, and the UK, USA, EU governments are about to step in an curb this raise as it's draining moment out of the economic systems which in turn damage all other industries.

Simon, I have a number of friends in senior positions working in fashion chain supplies and trend forecasting, trust me when I say everything is mid-cycle for high street brand fashion currently, with the 90's and Roadman aesthetic being the bread and butter. Broadly the fashion industry keeps a trend live when the overall economy is down as it's too risky to start pushing new styles that could miss the mark of the public's imagination.

High fashion (aka haute couture ) pushes more for drastic overhauls every season because that is their key selling point and they sell small volumes meaning having that kind of churn is fine for them.
However High Street fashion has a longer cadence over years, with staples (jeans, t-shirt etc...) always in trend. Look at Levi's, very little change in 100 years. Or look at Next, they might changes some colours or materials, however basically their style has remained static for decades.

Also, within high street fashion there is now a trend for the unusual lines of staple brands (Nike et Al), which the youths are hunting. What this means is you can hold stock of traditionally dead lines for a while and they will be bought up as the item will now be seen as unique to current shelf stock. That is why there was a massive growth of Nike Air hunters etc...

With regards to the shorts. Once again, when the majority of that 5% was established the share price had a long way to drop, and the shorts were correct as it did drop. But looking at the volume if trades and the individual size of orders, it is apparent that we have hit the floor. As such the shorts would be looking to close position to realise profits ready for other investments.

Simon, I think you fail to contextualise Asos and their stock in the paradigm of the current fashion trends, which are mid cycle with the embrace of the retro 90's and roadman aesthetics.
As such, Asos are relatively safe in holding the merchandise they have for at least another year, as looking at fashion cycles we won't see any major changes for a while.
Yes the shorts have their claws in, and they sunk them a while back when this share had a long way to fall, which it has, so makes perfect sense for them to close position to realise bet profits which they can flip into shares that are down ready for bull market. Also the short position is on 5%, which tends to be par for the course so nothing if major concern.
Yes Mike Ashley tends to snipe companies when they are on their knees, however once again context is everything, any he has just bought 4 other online businesses, plus looking to cement the Fraser Group, as such using this moment to acquire a serious rival in the form of Asos and consolidate the market would massively be in his interest. He has already acquired 2.9%, so has already carved out a chunk of the company.

Overall I see this as a golden opportunity, the whole market is in dire straits, so really once the market switches to positive there will be a lot of profit to be made, and of all the retail companies Asos are one that I can see make rapid improvements and rocket.

The whole fashion retail space is going through another consolidation, with less major players, and therefore a refined selection of companies to invest in.

There are ONLY 100m shares, so a small free float. Any hint of positive news and this could jump in price easily.

Time to dine and recline, floor reached.

And there we go folks, no majors left to sell, the shorts are now pinned. A few big buys and this will start to easily move north.
Doom and gloom has been overdone to this share.
Looks like National Revolutionary Army in Russia is gonna kill Putin and end the Ukraine war within months.
Energy companies in the UK have fleeced the public by increasing costs and making record profits to pay dividends to share holders and this has left a very bitter taste in the mouths of the public, and made it very dangerous for the BoD of the energy companies as they are now seen as the enemy of the public putting which could be physically dangerous.
Tory party have general election to think of now and if they don't stop rampant price gauging by companies using inflammation BS they will lose so need to sort out.

This is a repeat of the First Barons War, and the BoD and Tory party need to fix the issues or head might roll.

Looks like tree shaking at this point.
Surprised they can even get any sells.
Considering the size and revenue for ASOS to have such a low value is insane.
Good news is with port closure Asos will be laughing as they have merchandise to hand in the UK to sell and their rivals won't/don't.
Also now fashion sales switch to autumn and winter, plus you have all the Uni students getting their clobber ready, and looking cool at uni is more important than grades, which is reflected in the decline in grades with A Levels yet the mass stampede to get into Uni still.

Asos in better position than Asos.
Mike Ashley has bought 2.9% of Asos in recent times, which is a great indicator of belief in the company and that the share price is cheap currently.

Time to watch the shorts rush to buy

Mike Ashley's holding company called Mash Holdings is the listed company.
He bought this holding in July by the looks of things.

And to be honest (I know I'm the minority) would be happy for Mike to acquire Asos for circa £2.3b

Looking at the lead time for fashion production and merchandise bottlenecks, it's was a wise decision for ASOS to front load their product warehouses and spend so much money to continue supplying consumers.

Lots of fashion retailers are out of stock, and this is driving more customers to Asos as they can fulfil orders. Secondly to this, it looks like Asos margins have improved a bit by stopping time wasters with their minimum orders threshold.

The market is looking rough. And with Asos limiting their physical retail space it puts them in a strong position with lower overheads.

Mike Ashley buying a 2.9% stake of Asos is a very big nod that this sell off has been too much.

And the shorts have now started closing positions, and with 5% of the stock short that is a nice amount of shares to be bought back for them to realise profits.

Also traditionally August is a bad month for the stock market.

So come September and moving into H2 2022 from this current price there is a ton of room and reasons to make alot of money on this share.

They are recruiting over 200 roles at the moment, with a lot being posted in the past week, this is a great sign and shows they have strength financially and pivoting to increase growth

Well a some point the shorts will break cover as alot of them will have a lot of profit and now risk a price tally that damages that.
Mike Ashley has traditionally bought failed enterprises, however maybe he's looking at Asos as a way to go global which is in with give his son in law those massive targets.
And can already hear the Tory leaders clearing their throats ready to say they have gotten the energy companies to put a cap on costs to house holds.

All in all, Asos is looking like a good buy and hold to double money from here over a few months.

It's clear this is what the government will do. They are currently on holiday and squabbling about who should be leader.
Expect both donkey one and donkey two to both come out and say reducing energy bills is top priority.
Whoever wins will do that (and their Tory overlords will make sure the energy companies follow the party line) to make themselves hero's to save face with the next general election campaigns already coming into sight.

The whole market is getting screwed.
The really big issue is the increase in fuel/energy costs, however the government will step in in September to fix this to look like hero's.
The fact the fuel/energy companies can put up prices and recorded record profits and dividends to utterly shameful and going to bite them on the ass soon.

Yes generally the cost of living has increased. However the real issue is fuel/energy and just like in the 1970's with OPEC crisis this will be resolved soon, as the money makers will want the markets to turn bull to make more profits.

Otherwise if the cost of fuel/energy is not sorted by end of September this will start a more serious market crash that very potentially for the UK which is alone (due to Brexit et Al), will literally mean the end of Britain.

The UK market is made of consumers and services.
The lack of primary and manufacturing has put the country into a very seriously bad position.

Don't worry when the daughter and her friends get on onlyfans at uni they will make plenty of money to buy the extra push up bras and knickers from Asos to help us all out if this hole

Dogger69, are you touched in the head.?

There are record numbers of students about to go to uni, and guess what is traditionally their biggest purchase for the next few months.... That's right clothing!

Get with the times you old fossil, Asos are a sleeping giant

I just topped up again, amazing how cheap this is now.
Autumn and winter clothing sales plus Xmas to come.
Mike Ashley bought 2.9% of the company.
And shorts need to cover 6.4m shares.

Looking forward to the massive payday in a couple of months.

Is it crazy if this share does tank to the 500?

True.
The real question most will be asking. Is this a time to buy?

I've got a pocket full of cash and debating loading up more on this and forgetting for 6 months.

Third day in a row of more buys than sells.

But as usual the stock market makes no sense as its one big Ponzi scheme and the price has dropped. FML