Member Info for RobertoLarcos

In the past year, the maximum return one could have is c.15% if they managed to buy the bottom. The rest are down up to 50%. If you bought more than a year ago, then that's more than 50% loss.

Now the turnaround plan seems to be 'working', but the value of the company remains unchanged. Why? Maybe because that's what it's worth even if the turnaround plan works out?

They have c.£300m net debt + market cap of £440m at current price, an EV of £740m. So question is, how much do you think the equity value should be worth if the company makes say £150k EBIDTA but spend £100k+ on capex each year?

ASOS among the worst performing stocks in the past 3 years on LSE. A staggering decline of 90%. But everyone on here appears to be happy.

Does anyone know the date of the next update?

Who knows when is the next update? I know it's supposed to be in March but do we have a date?

This thread has not aged well... 😂

Why is it undervalued? Have you done a valuation? What are your assumptions?

How did you arrive at the £1.4bn figure?

This thread hasn't aged well........

Forgot your meds again??

Oh god KarlTaylor is on shrooms again

AHAHHAHA KarlTaylor..... you live in cuckoo land

Evraz are you high? You can't even spell please go back to bed

Agree with CWWX. LOL

The company had a £350m facility because it needed to. You can't operate without cushion and ability to draw funds were needed, and manage working capital. So when that was reduced to £275m they had to plug the hole somehow, and the did it by tapping on to shareholders. Furthermore, loan facilities have covenants, such as minimum liquidity. That means your cash balance cannot fall below a certain minimum otherwise you're in breach. The good thing about the new facility it's that it's covenant light, which helps management focus on delivering rather than managing the bank.

How is that relevant to what I'm saying?

Better position compared to what? If they re-financed the facility at £350m they would be in exactly the same place without diluting shareholders with a £75m equity raise. If they were doing well they would have been able to refinance the whole facility. Obviously that wasn't an option.

ASOS is navigating the most challenging period and that's reflected in the share price. It now all depends whether they deliver H2, and the market is clearly not confident about it. So, people should understand that they are placing a risky bet investing in ASOS now, high risk / high return.

Not sure how I can make this more simple for you. The cash in ASOS's bank account is no different before or after the fundraise / re-fi. The only thing that changed is the capital structure, there's £75m more equity and £75m lower debt. People here are under the impression that ASOS now has £75m more cash to navigate through H2, but they don't... they used that to pay down their loan.

No, that's not true. Asos had a £350m facility (loan) expiring in November 2024. That was replaced by a new £275m facility (with lighter covenants) expiring in April 2026. The £75m cash raised was used to repay the remaining balance of the old facility. Whilst this gives more flexibility and extends the horizon, it does not mean that now there's more cash in the business. It's that simple.

Why doesn't anyone on here understand that the £75m raised were used to pay down the existing debt facility? No extra cash has gone into the business from the fundraise. Furthermore, the amounts the Chairman and CEO bought in are so immaterial (especially the CEO's!), it means nothing.

@mountainous what on earth are you talking about?