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Honestly, Asos has had much higher valuation when the revenue was probably 1/8th of what it is now. It has now expanded internationally delivering revenues of £4bn albeit short term pressures on cost and profitability exist. Markets are controlled by the rich few, who swing the price as they want (both upside and downside)...
One day we will wake up to the news that ASOS is swallowed up for £15 at this rate. I will not be surprised with that considering that it is only 100% markup on the existing price. It will be a disappointment to be honest considering the huge potential that this company has. Very much possible with 27% owned by Danish billionaire. But long term holders who has much higher averages will be shafted. Look at Micro focus, it was trading at £20 a few years ago and now it got bought for £5 odd.
Im sure that pressure will now come to shorts to close their positions, given that takeovers in the UK market are now on the radar again considering their lowly valuations..
Dont do anything stupid buddy..Its only money, you can earn back...
https://www.wsj.com/articles/regal-cinemas-owner-cineworld-prepares-for-bankruptcy-filing-11660910944?mod=newsviewer_click
Not sure of the authenticity of the article though...
It's a utter disgrace to accept this offer for 110p. BOD will definitely know more about the business, but this is unethical. Why did they reject offers for 130p and 138p earlier, which i believe was undervaluing the business. Absolute **** show.
Not sure why people call this an over-reaction. If auditors have raised concerns, that actually means what's reported thus far is cooked. What confidence does anyone have that debt position remains the same. We've heard the same with NMC Health a FTSE 100 company which has strong regulations and governance going bust in a short timeframe. Hence i would be cautious here. Its your hard earned money at the end of the day, it's your risk.
I have taken a position of 4,100 shares at 186.2, thinking it was a market overreaction. Solid company with debt being the problem, but i guess with the FCF they are generating it should be manageable. Also company pays dividend which is a big plus for me in the current market situation. Time will tell, if my assumptions were correct.
This does appear way oversold on the face of it. EBITDA reduction from £140-150mn reduced to £120mn doesn't warrant a 48% drop IMO. 120m ebitda guidance and come in at 100m.A 10x multiple gives an enterprise value of 1bn. Currently 650m + 140m debt = 790m. So a 25-35% potential to get to what looks a conservative valuation.
What a disaster this has been. Just when i thought it may not go lower, it always tests lower lows pretty much every other week. Clearly markets have lost confidence in the management after their disastrous acquisition of GRUB (brought at $7bn odd 18 months ago and trying to offload now at $1bn as per press and still no takers). A solid case study on absolute destruction of shareholder's wealth.
What a disaster this has been? Testing lower lows every month and it appears that market has lost confidence in the management to deliver the outcomes. The macro economics and inflationary pressures are not helping either.
Blackrock i suspect definitely knows more than all PIs as they own a sizeable stake in the company before which they have reduced earlier this year at 195p. Is it not a conflict that they now short the company on the otherside proving the theory that share price will fall. Some people might call it hedging, but not sure how this can be legitimate.
For the record, im not shorting shares and havent shorted any shares in my lifetime. I am just reading the market conditions - with increasing interest rates, families tightening belts, i suspect next quarter results will be even more bad and there are not triggers here in the short term except a suitor wanting to buy GRUB or iFOOD. The share has reached my predicted zone faster than i thought it would.