George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Treacle - get your point re selling as probably will dip a little but with everything going on right now - I am just going to stick and wait for the continued rise over the next 9 to 12 months - I'd prefer a slow and steady rise though as we know H1 will be loss making !
I’d be surprised if a dilution occurred in next 6 to 9 months given what they said, and the chairman buy ( unless they called cash once the price is a lot higher ) but if it doesn’t go to plan then maybe a cash call then
That’s why you have the name… I don’t have the luxury of sitting on the sidelines but whilst I agree with everything you say, the points you outline below will not necessarily directly impact Asos target audience as much as it will others, and my point is the focus needs to be on efficiency to drive margin - revenue is large and sound but to not make a profit on £4bn is criminal and I think they have scored an own goal by ruling out charges for returns
I think all of this negativity and bad news is priced in after Wednesdays results - they have already said loss making in H1 and also taking a write off to square the books. Seriously, at this price versus revenue it is a steal for a corporate who can improve the operational efficiency quickly and therefore the margin - that needs to be Jose and team, or they should move aside and leave it to the bigger boys - don’t read too much into todays drop - linked to wider economy I.e retails sales and political carnage
Great post Simon and I share the frustration with everything you said - but I like you are holding on in here - but seriously, Jose is CEO of a FTSE 250 company and whether you like it / him or not, of course he would know about lean / six sigma - seriously !
Agree Lean is about operational costs but not just staff cuts - he talked at length about inefficiencies in the business. I also don’t think there will be any cash call soon - again he said multiple times about ample room financially to execute on his plans - we should either buy into this plan and support or if we don’t think it is possible maybe sell up and try to recoup elsewhere as plenty of other opportunities - after yesterdays analyst call, alongside the detail and write offs owning up to - I’m going on this journey for the next 12 months even though I am multiple thousands down here - just my view
Let’s just wait and see - I think there has been learnings all around and admission of wrong focus - the banks clearly buy into the turnaround plan. I say this is last chance to turnaround before a cash call or even worse but I genuinely believe a line is being drawn now and shorters will move (they’ve made fortunes) and now everything is out it may well even attract more investment or even an acquisition target - let’s face it everyone needs clothes and always will and the high street will only go one way. I’m a believer just only wish I was more sensible in the past and not nursing a hefty £19 average
I genuinely think this is bottom and shorts will start to close - if we see director buys and maybe even so fund top ups, it should push higher, and as you say, as inflation declines and we hopefully see an end to the war, we can even push higher again - next 12 month recovery play to £15 imo - who knows, given the conference to analysts this morning we may see 12 month broker upgrades too