Member Info for simon1367

I concur scallop. Only ourselves to blame. I notice Citadel have entered the shorting fray taking the total to 3.64%.....a fairly ominous sign. No doubt they're expecting disappointing news and to profit from it. But it may be an opportunity to buy in cheap.

Transferring to the main listing often involves more transparency and governance, and that can stop the volatility in a share, but not ASOS it seems. I unfortunately bought at a high price. I either have the choice of abandoning the share on an occasional 10% rise day, or wait for a low point to average down. I'm in two minds, as I do see good medium term prospects. Patience will be required for a few years. It's is frustrating that this share seems so aligned to the boohoo share price. If boohoo have bad news, you can be sure as hell that Asos drops in sympathy.
I hope those who have commented here today about the challenges faced, don't get the insults I endured a couple of days ago when I basically highlighted the issues. I merely comment as I see it. Shorters up again to 3.18%. For those who disagree, rather than criticise, please tell me all the positives that you see in the next eighteen months.

I'm sorry to say this but with the shorters still above 3% of the stock, I can still see this going back down again given the ridiculous rise today on the back of Motley Fool comments. Motley ''Fool'' is exactly that. I've monitored their recommendations over the years and it is not exactly impressive, and is often BS.
I'm well down on this stock and even a 10% rise today, whilst welcome doesn't come near to my 'get out' price. At the moment I simply do not see the positives. What is going well for the likes of Asos and Boohoo? Higher turnover does not necessarily translate into higher profits when everything else (inflation, logistics, wages, other costs = lower margins) is negative. Don't get me wrong, Asos (not Boohoo) will come good but not yet. Profit taking tomorrow. When the next news comes out, it better be good otherwise the trend downwards will continue. I wish I'd stayed away from this volatile stock. I thought 10% swings only happened on AIM. Now we're seeing it on the main listing. Crazy.

Short positions creeping upwards in anticipation, I suspect, of negative news . In the short term I simply can't see where any positive news is going to come from (unless there is takeover lol). I'm invested with a big loss on paper, but I'm not tempted to average down yet, as I now see it going lower still.

This looks precarious. Last week 4.77% of this stock was being shorted. Today it is over 6.5%, one of the highest shorted stocks on the market. Several hedging companies see this only going in one direction. Be prepared for a tough couple of weeks. I still see an entry point here below 50p.

I'm pleased for those who bought cheap and who can make a quick buck. I'm surprised in the jump. Sales growth is encouraging but unless the margins increase and inflation reduces and other costs reduce, this share is going to struggle.
I'll certainly buy if it drops to 50p-ish in the next few months. With shorters holding 4.77% there's a fair chance this may drift down again.

Grimrip44. Thank you. However I was merely responding to another persons post and link on this thread, so there was no need to be so sensitive to my criticism of Boohoo when I assessed their governance compared to ASOS.
I stand by my comments. My reservations are shared with many others on here. I think you are completely naive in thinking that a majority of shareholders wouldn't accept anything less than the average price of their original purchase (you've plucked a figure of circa £2.50 out of the air). It happens all the time.
You ask me to get my facts right. Nothing in my last post is factually incorrect. Today the boohoo price is down another 8% to about 0.82p. There are better opportunities elsewhere. People are now prepared to cut their losses. The recovery will be slow IMO, and the only hope in the short term is a takeover (which in itself would be an opportunist deal) or a private buy back. At 0.82p with the share price roughly back to where it was ten years ago AND the risk of having to wait a long time to get back to say 2.50 I would be willing to bet that many (institutional and private investors alike) would bite your hand off if someone came in tomorrow and offered say an 90% premium to the present share price. The FACT is, as in my original assessment, there are too many dubious factors about Boohoo in comparison with ASOS. My previous assertion was that ASOS is a better run company. I am still confident that is the case.
I would add that I am an ASOS shareholder and suffering significant losses myself. Their prospects in my view are much better, but even now there is a good argument to sell up and invest in another opportunity which has better prospects in the short to medium term. All this reminds of keeping to a ''stop loss'' limit in the future!!!

Thanks Peakybinder for post.
It wouldn't surprise me at all if Boohoo went back to private. Screw the small shareholders and buy back on the cheap.
ASOS will not follow this route. Their future is in the FTSE.
All the time Boohoos governance issues remain, as well as some other dubious issues, their share price will be subdued.

I'm concerned that major shorters still see money to be made in this stock. Those with over 0.50% of the whole stock have increased to 2.66%. in the short term, despite ASOS fairing relatively well given this year's challenges, I can see continued volatility and an opportunity to buy in at a lower price in due course.

Admittance to main market does of course have pros and cons. More chance of shares having to be bought to satisfy certain investment vehicles. But more regulatory requirements. Company's performance in my view is good, given these testing times. However, I think the shorters will still continue to see opportunities here over the coming volatile months.

I admire your optimism Claire. Either that, or you have bought in at a higher price and are hoping to talk the price up.
Increased volumes (even substantial ones) do not automatically convert to increased profit. Their business plans are good. It is a well run company. It will withstand pressures more than some. However, in my opinion, there is more likelihood of a further profit warning than there is of a report of a great last few months through to xmas. Margins will remain low, and inflationary and logistical factors will hold the share back in the short term. That's not to say the share won't rise a bit....it's clear this is a volatile share where the price seems to vary up and down by at least 10% each month. I think being on AIM is more susceptible to market manipulation.

Marshall Wace have been shorting this stock for ages. They're having a great time. Having closed out on about half of their exposure recently, they are now back to 1.60% of the stock. Being the major shorter, they will do whatever they can to get that price returning to around £22 at which point they'll do the same again at about £27/£28.
ASOS, in my view is a very well run company with a bright future. In terms of quality and governance it is, again my opinion, well ahead of the likes of Boohoo. However, it's margins are under tremendous pressure due to the present logistical problems, increasing costs (including inflation), and increasing competition. Black Friday is a disaster for these companies. Turnover isn't everything. Discount days cut margins even further. Heavy Xmas discounts will continue this year. It has been said that the high streets are dead. Some are....some certainly aren't.
I am concerned in the short term. With the news of some Covid restrictions being re-introduced, I was quite expecting the price today to rise today by a few points but instead it dropped by a few despite the rest of the market rising. This is uncomfortable territory.
I think if people hold the stock and are prepared to wait a year or two it might reap rewards. If you're looking to make to make quick money in that £22 / £27 range then maybe you'll be in luck.....that is if you can get in to deal on AIM when you need to. My entry point has been revised. Presently there are better opportunities elsewhere.

In October, Marshall Wace was shorting 0.67% of this stock. They had closed out some positions when the support level of £22 was reached and they took profits. Then we get some positive vibes from the company. The price goes up to £29. Marshall Wace gradually increase their short position again to 1.60% of stock in readiness to make another killing. The price goes down 6% today. It will probably head towards £23 whereupon the same will happen again. A day traders dream.

Interactive Investor have today notified me by way of corporate action that these shares are deemed WORTHLESS. I knew that already, but would like to know how the cowboys behind this company have got away with it.
Also am I able to offset this loss in any way?

Hey Arnold: I agree. Lower margins, bigger discounts due to the competition will lead to a tough few months ahead. These are following Boohoo down if the results don't exceed expectations. The figures due next week do not encompass present challenges. Marshall Wace and Gladstone have been manipulating these shares for a while. They may have closed out on some bets last month, making a tidy sum, but they are still shorting about 1.3% of the stock. Even with substantial growth, future rising profits are under threat. Expect £22 if results are anything but impressive.

Chloe : I suggest that Boohoo and Asos have done well over the pandemic not particularly because of 'resilience' but because of the circumstances that prevailed.
Common sense would tell you that they have benefited from more people ordering online during these times. Yes, these companies are still growth stories and turnover will continue to increase. The main issue will be lower margins due to costs out of their control, plus the other factors I mentioned yesterday.
I still consider Asos to be a more 'quality' stock with a stable future. Boohoo, I have my reservations about, not least because of the founding owners and their extended family and rumours about the way they have operated. These rumours still hang around. I'm sure their is a quick buck to be made from Boohoo in particular, but both companies have 'tougher' times ahead, and I believe Asos are better poised to survive any global downturn.

My entry price was originally going to be sub-£29 but I fear this has further to go. The trend is continues downwards. It's unfortunate that so many negative factors have subdued this share all at once. The margins are reducing due to higher costs, inflation is rising due to energy prices going through the roof, and I suspect there will be more heavy discounting at Christmas given the competition with their rivals. Buying the old high street names in my opinion was also risky. The October results will unfortunately (I know I'm stating the obvious) be historic and new factors have subsequently come into play. On top pf that the shorters haven't completely gone away, Gladstone and Marshal Wace took some profits but between them are still shorting by a total of about 1.3% of the stock. Added together, despite increased turnover, this does not look like a stock I should be investing in.........yet.

I find various target prices 'bizarre'.
How can RBC today reduce their target price for this share from £73 to just £72. For goodness sake, let's have some realism. The price is currently under thirty quid and has been drifting downwards for weeks. Margins continue to be squeezed, inflation is predicted to be 4% within the next six months, and other competitor's results show similar trends. It doesn't matter how much the turnover increases by. If the costs are creeping up, this share will continue creeping down.

Interesting. It took me two minutes to buy this stock on my Interactive Investor broker account.
I suspect someone at HL doesn't know what they are talking about, or has fobbed you off.
The London Stock Exchange says there is a service which allows the issuers of ''Regulation S category 3'' stocks , to use the electronic settlement service through CREST. TBLD is classified as a Reg.S Cat3'' stock !!!

I'm mystified why HL don't deal in this stock. Interactive Investor do. There's been a lot of underlying interest in this stock. There are risks of course but at the moment things look positive for this growth stock. Early days but this could also be a takeover share a couple of years down the line.