Member Info for RobertoLarcos

Profits are not ahead of estimates, they are within the range.

Analyst estimates of £4.40 and £4.85 imply limited upside.

You have been fact-checked by Larcos :)

You pay back more than that within a year (£37m effective interest)

I missed that point... that might be a good thing depending on the discount

Do you think that the £180m doesn't include inventory? They just sold the IP?

£330m (less the value 2 other brands) and £180m are the comparable numbers

What you just said doesn't make sense. Especially the part about repurchasing old debt.

You borrow 250m, your debt increases by 250 and cash by 250 (less fees!). The rate on those is 10% and matures at a premium of 20% (effective interest 14-15%)

You use (say) 150m of that to repay old debt (at 0.75% interest but maturing in 2026). Cash reduces by 150m, debt reduces by 150m

The ONLY impact on net debt is the cash from top shop sale. Sold for an enterprise value of 180m when bought for 265m a couple of years ago.

Desperate but necessary moves to buy time

A short position is a bet against the share.

In order to do that, you borrow the shares from someone for a certain period of time (say 3 months).

During that time, you sell the share and pocket the cash.

In 3 months time, to close the short position, you need to BUY back the stock (at whatever price it trades) and give it back

If the price went down during that time you make a profit.

So to answer your question, the large sell can't be a short position closing as it doesn't work that way

Let’s be real – ASOS is still in deep trouble. They are now forced to sell assets bought just a couple of years ago, slashing inventory to free up cash. All that highlights is how badly they’ve mismanaged things. Sales are tanking in double digits, and they’re still bleeding money.

Active customer numbers dropped 14% year-on-year. That’s huge. They're just squeezing every penny out of existing customers while competitors like Next, Shein, and Temu are eating their lunch. Good luck trying to maintain that "convenient delivery and returns" when you're being forced to slash costs just to survive.

And speaking of slashing, they’re pulling out of international markets because they’ve been throwing good money after bad for years. Yeah, cutting costs sounds great on paper, but it’s short-sighted. What happens when the US market – where all the future growth is – starts picking up again? Oops, too late.

Then there’s the debt refinancing. Higher interest rates? That’s a red flag. Lenders clearly don’t trust ASOS anymore, and who can blame them? This company’s performance has been dreadful. Sure, selling off Topshop/Topman brings in some short-term cash to help cover the higher costs, but how long can that last?

ASOS might have some long-term opportunities if they can survive, but right now, it's looking pretty grim. The competition is closing in, the debt load is getting worse, and the company is scrambling to cut costs while trying to grow.

I'm not convinced they’ll come out the other side in one piece.

GLA DYOR

Sudden drop at close?

Celtic I don’t think you are in a position to judge. You take advice from what journalists write ffs 😂😂

Now you listen to analysts?

Market reacted well as Asos avoided bankruptcy which was imminent. A small window to get out now as it’s not going to end well.

£37m annual interest is a steal and priced for distressed equity

Signs are all there

It means £37m of interest per year just on the £250m. If that’s not bad then I don’t know what is

A great one off opportunity to sell now and cur your losses

The terms are really bad, the devil is in the detail

Read carefully

GLA DYOR

RLarcos

Suddenly the broker/analysts are not 'clueless' ?

Whatever suits the narrative lolll

Do you agree that 15% effective interest rate is extortionate? That's junk level territory.

That's for the Topshop brand, can't you read?

Roberto the fakenews-buster!

Facts are facts whether you like them or not

Busted. I like calling out fake news. That's my purpose on here.

Bust the liars and state the facts