The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
It's a shame the management couldn't foresee the threat from amazon. Towards the end they were selling stuff at rock bottom prices in the mothercare.sale but it was too little too late. At least Boots chucked them some sort of lifeline
I agree, sentiment around this stock is poor for us traders and investors, however the customer base do not give a dam about any of those issues. Customer demand is still strong and growing, especially if you judge it's potential for growth by online metrics such as search volume, social media engagement, app usage which are all steadily growing steadily.
*Not sure why I wrote Debenhams. Asos acquired Topshop, Topman & Miss Selfridge.
Support for the last 5y looks around 3200p, look at the 5 year chart, even during peak covid panic (March 2020), the share price quicky bounced back to ~3200p. I think we have bottomed out now. ASOS has drastically changed within in the last 5 years, it's picked up good brands like Topshop, Debenhams and others, it's also expanded into other markets. Pre-tax profits have increased by 4 times from 2019 to 2020, at the moment the P/E ratio ~22, well below the 5 year average of 57.7. Google search volume & app usage for ASOS.com has remained steady, despite the highstreets opening up after lockdown.
Anyone buying today is getting a great deal. The fundamentals are solid.
So why has the price bottomed out? I think it all began when Nick Beighton sold shares on the 14/06/2021. One month later he announced: "Uncertainty, particularly around changes to travel rules and hence the ability of people to book holidays, means that customers are finding it difficult to plan their lives and wardrobe choices,” - He also wrote: "in the four months to June 30 but were “more muted” in the latter three weeks of the period. This statement created the panic and shook out the weakhands and plunged the shareprice by 14% in one day. This sudden capitulation, created further anxiety in the market and we have seen a steady capitulation all the way down to 3200p.
We are now at the anger -> depression stage of the market psychology cycle. Once we come out of this, you will see management buyins and a steady increase in share price. If you don't need the money urgently, just be patient.
If you look at the Google Search volumes, the app usage and the year-on-year growth on pre-tax profit you will realise that this company is solid on fundamentals. In addition, the brands they purchased - Topshop and Debenhams are are starting to gain traction, in terms of search volume, since their administration.
The fundamentals are solid for this company, from 2019 to 2020 Pre-Tax profit increased 4 times the amount (https://www.sharesmagazine.co.uk/shares/share/ASC/fundamentals). Granted, some of that is may be due to lockdown, but maybe not as much as people think, check out the google search volume:
https://trends.google.com/trends/explore?date=2020-01-01%202021-09-03&geo=GB&q=%2Fm%2F03gvmw7,%2Fg%2F11dd_swcrg,%2Fm%2F06cm4q,%2Fm%2F044_xs,%22Clothing%22
To be fair, the weather in the UK, at least where I am from has been very inconsistent. However, I do not believe the ASOS CEO, he chose his words very carefully - WTF does 'muted' sales, even mean when you saw UK sales rise 60% in the four months to the end of June! It's almost like he wanted to inject uncertainty into the market, I suspect we will see management buy in again once the dust has settled.
Nah, I don't agree. Customers tend to be young women, who are quite fickle and price sensitive. What they preach on social media, doesn't reflect what they secretly buy.
The same women who go preach BLM, are the same women who buy from the Boohoo sweat shops.
We've hit the support around ~3600p, there is no reason why this shouldn't pump back up to 5000p in the next 3-6months, after the correction the shares are now trading with a PE ratio of 21, compare this to Boohoo which is trading at 42.
This is what the times had to say about the appointment of the new non chief exec -"The appointment represents something of a coup for Quintain given Mr Rucker’s reputation as a big-hitter, particularly when it comes to mergers and acquisitions.He certainly knows the business inside out." I am sure with his expertise on the board, these shares we see a steady rise.
Why such a drop in 2 days? I think one big sell order for 700,000 had something to do with it. Once people seen the price dropped they may have panicked, I think tommorow will see a rise, i'm quite tempted to buy big in the morning and watch it rise throughout the day. The price drop is very adverse to the recent good news the company has had: TT planar resistors are rated from 5 to 40kV http://www.electronicstalk.com/news/wel/wel159.html Electronics Talk - Sep 17, 2009 Precision planar resistor family rated up to 40kV http://www.ukprwire.com/Detailed/Technology/Precision_planar_resistor_family_rated_up_to_40kV_51652.shtml UKPRwire - Sep 16, 2009 TT electronics name 'Emerging Company of the Year' http://www.emsnow.com/npps/story.cfm?pg=story&id=40518 EMSNow - Sep 14, 2009 TT Electronics Finds in Taridium ipbx a Dream Solution to PBX Nightmare http://pr-canada.net/index.php?option=com_content&task=view&id=124319&Itemid=65 PR-CANADA.net - Sep 11, 2009