I think it all hinges on the ability of sales to recover, you’re right if sales don’t come back then it will be hard to recover from. If the talked about VAT holiday transpires then hopefully that will have a positive impact. Will be interesting to hear how sales are holding up... if we get some guidance that they’re pretty strong I think a lot of the risk factored into this stock disappears.
On a positive note ASOS share price responded positively to a placement earlier in year.
Coupled with a strong plan could be good news, but would like to see what they want to do with the company. Also, my assumption would be they will use the money to pay down debt, but would like to see this confirmed.
Will investors throw good money after bad though? Doesn’t matter how much it’s discounted if the company is failing. Surely they have to give some idea of 1) strategic plan 2) what they’re going to spend the dosh on? Otherwise investors won’t pony up.