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That 1 million buy at 16.35 looks like a short closing.
Prior to that there where 4 companies shorting Asos : Gladstone Capital 1.11%, Polar Capital 0.87%, AHL Partners 0.81% and AQR Capital Management 1.69%.
According to Shortics.com, 5% of all shorts have now closed since last year when they where 9% at there height.
However, such a bid would be below the GBP70.50 that Asos shares touched in late February. While investor confidence is currently being rocked by profit alerts, long term Asos is in rude health. There may well be some bumps in the road, and while the juggernaut that is Asos might well be slowing, it remains on course to reach GBP2.5 billion in global sales. Asos is an appealing target and, while a bid can’t be ruled out, either from Amazon or another company, for that matter, it seems unlikely right now.
So I guess this is where the takeover rumour stems from :
UBS has fuelled the flames of a takeover bid for Asos. This time the suitor is Amazon. Not for the first time, it should be said, the e-commerce giant having looked at Asos’ books two years ago. At the time Amazon acquired Zappos in an effort to expand into fashion. Amazon is not the first to show interest either, with eBay also rumoured to have looked at Asos to expand its fashion credentials.
With Asos’ share price tumbling following its third profit warning in seven months in September, Amazon might have concluded that offering USD50 a share now for a stake in the online fashion retailer would be great value for money. Asos is an established business with an efficient supply chain, excellent retail operation credentials, technical capabilities and strong logistical presence.
Although international, Asos' global footprint is relatively immature. Recent ventures into China and Russia are creating numerous challenges, not least heavy investment in improving logistics. While Amazon might be dissuaded by the fact that Asos’ global infrastructure is not yet fully established, in leveraging its IT and logistical capabilities, Amazon would boost Asos’ profitability as it expands globally.
However, such a bid would be below the GBP70.50 that Asos shares touched in late February. While investor confidence is currently being rocked by profit alerts, long term Asos is in rude health. There may well be some bumps in the road, and while the juggernaut that is Asos might well be slowing, it remains on course to reach GBP2.5 billion in global sales. Asos is an appealing target and, while a bid can’t be ruled out, either from Amazon or another company, for that matter, it seems unlikely right now.
UBS has fuelled the flames of a takeover bid for Asos. This time the suitor is Amazon. Not for the first time, it should be said, the e-commerce giant having looked at Asos’ books two years ago. At the time Amazon acquired Zappos in an effort to expand into fashion. Amazon is not the first to show interest either, with eBay also rumoured to have looked at Asos to expand its fashion credentials.
With Asos’ share price tumbling following its third profit warning in seven months in September, Amazon might have concluded that offering USD50 a share now for a stake in the online fashion retailer would be great value for money. Asos is an established business with an efficient supply chain, excellent retail operation credentials, technical capabilities and strong logistical presence.
Although international, Asos' global footprint is relatively immature. Recent ventures into China and Russia are creating numerous challenges, not least heavy investment in improving logistics. While Amazon might be dissuaded by the fact that Asos’ global infrastructure is not yet fully established, in leveraging its IT and logistical capabilities, Amazon would boost Asos’ profitability as it expands globally.
Cont
Hopefully the recovery will get under way today. A lot of investors use the 3 day rule where they give the company 3 days after a profit warning before buying in. Let’s build some momentum :)
3 days to make sure the price has bottomed out.