EVIL SAYS SELL !!!!!!!!!!!!!!3 Jun 2011 22:54
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9th May 2011
My attention has been drawn to the fact that a US broking firm, Gilder Gagnon Howe, has 7.3% of ASOS (ASC). Its website, www.gghc.com/AboutUs/what.aspx, suggests it aggregates small orders on massive leverage. I cannot understand why this approach is adopted. It may be that GGH has only to put down 10% margin whilst charging its clients 25% margin and that this is beneficial to GGH's cash flow. But that such a firm should clock up 7.3% of ASOS (or, given ASOS's staggering capitalisation of GBP1.7bn, GBP124m exposure) is very remarkable - it can't be investment that is on its mind. In the light of the very odd transactions in which Americans engage, I think ASOS has changed from pain trade (i.e. awaiting the vertiginous collapse) to outright short.