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Asos worked out nicely for me overall. Personally, I buy at a level it’s previously bounced from, and if it continues falling, the trend is gone and I get out and stop the loss. I don’t stick around kidding myself with “it’s only a paper loss”- once it’s gone, it’s gone.
Had you realised the “paper loss” when you were £10k down, you’d have been in a better position now, would you not?
Same can be said for Marstons. The debt has killed its SP, and the same is happening here.
Rights issue is a real possibility here given the size of the debt, and the ability (or lack of) to service 6-7% interest rates.
I’m not sure if you’re aware paddy, but turnover is irrelevant. 7% gross margin would only just cover the interest on the debt, never mind all the other costs. Hence why the SP is tumbling.
I’m not going to get into tittle tattle about JSA, medical help, claims of multiple accounts etc, save it for the playground.
Paddy, you talk about insanity and say I need medical help etc.
The definition of insanity is doing the same thing over and over expecting a different outcome. There has been no reason for the direction to change, but tell me what you’ve been doing on every drop? I suggest you seek medical help yourself.
I called it right all the way since 120. Will be sub 80p by the end of the month.
Oracle,
There’s a bottom at which HB’s can break even, but there’s no bottom at which house prices could fall, although I think 15% will be the max. That’s why PSN SP is falling fast, as it’s highly likely prices will fall further than it costs to build this wiping out the margin.
It isn’t affecting new buyers as badly because they are buying a smaller house and using it as a bargaining chip to get a cheaper price, which does affect HB’s
Gleeson only operate in yorkshire where property prices are much more affordable, even on these interest rates.
I can’t see it dropping to £4, but I think we’ll see £6 in a few months. It should be in the 7’s now to be on par with Bellway if we look at price to book value.
I thought we would see some resistance at £10, but no, it went straight through, and continued falling. Will be interesting to see how much further it has to fall. We should know the bottom Q1 2024.
Yep, agreed £5-£6. Just not worth the risk at the mo.
You did well there being as they’ve fallen since you bought- you must teach us your wisdom. I’m not going to refresh your memory every 5 minutes about my asos purchases. Go back through my history if you struggle to remember. Made a very tidy profit here having been short since 120. Your loss is my gain 😉
Just read this and it’s a bit of a sobering reality check:
https://www.msn.com/en-gb/cars/news/sports-carmaker-tvr-scrambles-for-cash-injection/ar-AA1djMXf
I’m currently 53% up on AML, but I’m reluctant to profit while it’s still going up
Paddy, please explain to this MCG board why you’re so obsessed with Asos? Yes, I bought it at £7 on three separate occasions, each time with a stop loss at £6.30. Made about 35% the first time, 10% the second, lost 10% on my third time- overall, a tidy profit. Everyone has losses, but I never lose more than 10% on an investment. You must be over £30k down here so far?
Anyway, that’s enough deflection on to Asos, you still haven’t told the board what could change the direction of the SP here? Even if the results are amazing this month, it’s will go up for a day or 2 before continuing its fall, just as it did last time.