RE: Good day5 Sep 2024 17:27
I'm glad the share price went up for you.
However, the devil is in the detail. Povlsen have saved Asos. It's only a short term band aid. Asos have to pay back a £500m bond at the buy price and will have to do the same for the £250m bond whilst paying 10% to 11% interest for its duration. Will they default on this second £250m bond? Who knows? Asos are still in a dodgy situation. They have got a bit of money from selling Topshop. I said Asos would have to sell Topshop to survive. This is exactly what they had to do.
Asos are still a struggling business and had to sell Topshop at a loss. Royalties are worth bu**er all.
Povlsen have saved Asos short term.
The mistakes Asos, Boohoo, Revb, THG made was acquisitions and paying too much for them. Asos was Topshop. Boohoo was a failing Debenhams, REVB was Medichem and THG was too many acquisitions for too high prices.
It's all about investigating everything and it still is. Asos have got a short term reprieve however will it last.
The huge mistake Asos and Boohoo did was buying Topshop and Debenhams. This takes you away from focussing on your main businesses.
Plus, Asos and Boohoo should have copied Shein and got their stuff made in China, posted direct to the customer. China can do upmarket fashion as well as fast fashion. This is what the CEOs should have been doing and not buying Topshop nor Debenhams. Waste of money. Waste of time away from the main businesses.
Good CEOs buy profitable businesses at a great price.
Asos, Boohoo, Revb and THG have all too much debt with their acquisitions and lack of learning to copy Shein and get onto a level playing field.
Companies with too much debt are high risk shares.
Asos isn't out of the woods by any means.
For me, if I'd been holding Asos today, then I'd sold at the highest price close to the 453p. You can always get back in when the price goes down again.
Shares are all about learning on a daily basis and we all need to be open to learning every day.