RE: We've seen this movie18 Feb 2025 14:06
I've given clear predictions and explanations, but you're just burying your head in the sand.
First of all, look at the title of this thread. I predicted that the sudden rise would be short lived.
Second, I've written multiple times in this forum why this share is a d0g, but let me refresh your memory:
1) Intense competition in a crowded market (SHEIN doing what ASOS does but better and cheaper)
2) Revenue going backwards, failed US expansion, ASOS falling out of fashion
3) Very high operating leverage and thin margins (further impacted by intense competition)
4) High capex
5) High debt with extortionate interest rates
6) Incompetent management (particularly CEO who was part of the 'problem' since the beginning)
7) Maximum potential if turnaround works is to cash breakeven or a very low CF yield (hence even if turnaround works, the upside potential is very low for the level of risk)
On top of all that you have a weak economy, squeezed household income, low consumer sentiment and 4 more years of labour government
You're welcome