Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I'm with you KBK and Savvy I'd rather not sell and go 12-18months for the bigger prize (hopefully turnaround) but if £17-£20 lands on the table now possibly yes thanks very much :)
Agree with KBK the 20-30 age group will still spend and holidays is the number one on the list for all ages and the spend on clothing is still here and happening. (they are in the process and changing their time of the year wardrobe)
Whilst out yesterday I visited a large shopping complex and it was packed but the offering by most stores wasn't great and sizes limited, yes there were sales on but my wife looked at certain items then commented I will but it online when we get home??? Add to that so many empty-closed stores and predominately the age group on average shopping were 40+ so highlights the younger generation love online. One more point to add and I know the returns is an issue but watching yesterday 70% plus customers I watched used the changing rooms and on average don't buy all the items they try on...we have to get a bit real on this one.
Agree with the comment earlier that the events after close today will spark a lot of press over this weekend but I still stick with my take on this that unless the offer is £15-£20 not a chance as they want the long term share price value out of this. I do think a certain shareholder here will create negative press to get his way on the price so kind of expect a bit of noise here for a bit.
Time to sit back over the next few months and watch your share price grow.
Also said “credit insurers withdrew last week” which didn’t happen last week, I think MA has made the article about his him and it’s all about piling pressure on getting this company. The negative press centres all around one individual and it stinks.
If and a big if that when that offer of £12 was made had they been in distress and not worked out a sensible plan they would have been at the table talking so lets get real here.
does it have short term issues yes but long term this can be sorted and if there are companies that want this cheap they aren't coming here to lose money are they so they can see the opportunity so I don't blame them taking £12.
Good article HH Nick Sleep is part of the new set up that could help sort this business out and maybe bring back an old face at the top seat? additionally they could strengthen the board with more muscle and skill set.
TT pretty sure cant see a MA/Camelot synergy but can see Polv/Camelot and Nick Sleep synergy not sure MA is part of the plan??
Clothing in the high street apart from a few like Zara H&M the rest is dire and expensive for what it is, the UK love value/quick and kick it back if it is not for them, look in your street where you live its littered by online deliveries hourly in some cases so the UK love of online is here to stay and bricks and mortar whilst will still be here will shrink in its footprint just like the grocery sector. I would be more concerned with an over SQ footed retailer at this moment in time and a labour government on its way to depress it further (it will) mind you not sure the Tories have a good look at the moment :)
TT the amount of companies that are currently trading now and the last 2 years with limited supplier insurance is bigger than we think, also you have exaggerated that it is all their insurance (which it isn't) also they have so much stock they aren't in a rush for more(which isn't a bad thing as stops them overstocking and being lean and pushing what they have) their website done properly (which is what the company was built on) will steer their customer on to the stock they have and further incentivise them with discounts to clear the wrote off product as well boosting the margin. These are not mug retailers they just took the wrong turn and paid a high price and now need to get back to reality that customers have again realigned since pandemic and the high street reopening.
Remember.. they picked up new customers during pandemic (still shopping with them probably and a new audience) also the high street has poor stock levels and lack of inspirational stores such as House of Fraser a proper mess of a once fine department store or a Sports direct on steroids /unattractive proposition in so many empty units and the UK who is more into leisure than shopping these days and working from home for a majority of 2 or more days a week (need casual wear not business dress) so many dept. stores are on their backside (John Lewis prime example and just lost £400m just like that and looking to take on private equity) the high street is in a mess FACT.
ASOS is realigning itself to the current marketplace and with a £4b cash revenue no large rents/high staff levels this business can be tweaked so fast and the debt in my opinion will get settled quicker than we think so no fire sale to take place here at £5-£7 sit back for the £15-£20. MA in my opinion is not built for online on scale as NEXT and he would be dire in this space as he is a market trader of retailing(just my thoughts)
My thoughts are that with their will be a bigger spend in summer clothing due to holidays on peoples priority list/the stock wrote off in previous RNS will be sold through or to other and this will be bottom line 100% profit on its return to their stock inventory (just like other retailers)
Also when you write off the previous amount of £290m last RNS their will be the biggest cost cutting exercise this company has ever seen especially with new money going in, the taps that can be turned off and additional savings in non essential payroll through them closing other buildings will again save.
The next RNS will give us a great shape of what is to come and yes my thoughts they kitchen sinked the last one and that's why we will see the current investors not look to sell out but hold for the bigger prize long term and a return to a bigger share price, the current big holders don't have a reputation of a fast buck and also interesting that MA into AO now another holding of Camelot...could this be a grudge especially with all the negative press popping up????? I wonder?
I think MA is disrupting the whole thing over the last few days and agree we will get an ok update and a build back to normality...the big shareholders want to return this back to an organised business and a strong share price...they not in this for a quick turnaround is my thoughts.
Personally still think he wont buy this but if the long term turnaround and kicks in (£15-£20 per share) he makes a lot of money and gets a platform for his products.
Camelot are the ones to watch here and they invest for long term not fast bucks.
I reckon we have some individuals disrupting the space in the media (causing trouble) possibly ones that have an interest in being left out of the ASOS party and want to be in big time. mischief by potential buyers.
One thing for sure there are some big buys going through this morning not much longer at this price that's for sure.
The next RNS from the company at worst will be flat in my opinion and I do think they will be looking to deliver a very positive message as other have mentioned we got the kitchen sink one previously, if you can please bottom drawer this and come back 12-18 months this could be a life changer if you have a reasonable amount in investment here. Sadly most can't and watch too closely (I'm the same:)
If this gets a buyout anything less £12 won't cut it and my opinion is the current big holders are in this for the turnaround and big prize.
Camelot and Nick Sleep aren't fast buck merchants and just can't see them getting involved otherwise.
THG went up 40% in one day alone on an RNS that they had an offer in writing.
This is likely to jump 20% tomorrow on nothing confirmed or denied also very interesting Nick Sleep coming into this....could get messy if bids start.
Current debt will still not put off those who are seeing £4b sales/established client base/customer data or n spending /convenience to shop where they always shopped/ and a business not damaged in its customers eyes if they don't watch the share price.
Not that I am a fan but MA business is the perfect synergy for ASOS and he has the money so he is a huge one to bet on if it gets taken over.