Member Info for Treadstone

Thanks your post. This seems a more civilised board than most, where some interesting peripheral stuff can be discussed without attracting a lot of agressive comments. If I can find out more on this company's activities I will post, other than that my main arguments in favour of this business have been said. I have two books to recommend to you that someone gave me last Xmas. 1) The snowball Warren Buffet and the Business of Life by Alice Schroeder published in 2008 updated in 2009. 700 pages and a damn good read. 2) The Essays Of Warren Buffett Lessons for Investors and Managers. A bit dry but equally good Get a hold of at least the first book you won't be wasting your money. In the meantime I better get some food in me and thanks again.

I see from todays Investors Chronicle that ASOS has opened a new distribution centre in the north of England and a new website in the USA. IC believes that continued annual double digit growth is a strong possibility but points out that the present sp represents a p/e ratio of around 35 times and needs such growth to justify this high rating. Therefore the magazine argues that if there should be a slight downturn in trade the sp could pull back. Admittedly the sp has had a meteoric rise this year, but as I have said before IC has always damned this company with slightly faint praise and fussed about the p/e ratio. This business was founded at the end of the dot com boom and grown year on year and has just about the biggest growth in sp on aim. Something even IC has been compelled to point out. You cant get better than that. Now its attempting to make its presence felt in the USA a huge market with massive opportunities if they get it right. If the Americans give this company the same welcome Body Shop received on opening in New York the future looks promising. Distribution could be the biggest problem to conquer, but I am sure that proper planning for such needs has already been well thought out. As for a realistic value for the sp its difficult to guage, the market must decide is really all I can say on the matter. Yet if the company continues to grow successfully the share price will reflect that eventually despite temporary setbacks, profit taking etc. This is a basic tenet of Warren Buffet, because this is his type of company with a basic easy to understand product we all need, with visible tangible growth in sales, revenues and profits. If you hold it for a long period of time the compound growth in the sp can be staggering. The profits are also real unlike say some of these oil exploration cos. or trendy clean energy cos. where share prices rise on future expectations but profits are non existent. As I have explained in an earlier post I nearly bought this for 17p back in 2003, but thanks to lack of information I did'nt find out enough to make the right decision. How dumb can you be ! It could have made over 50 times the investment with compound growth like Buffet. So for those who are prepared to invest long term in this company I still think this has still got a long way to go Good luck all !!.

ASC if it keeps growing at its current rate will double in under 2 years, though I can't see it growing at 50% year on year every year. However, many more young people are being attracted to its website and buying cheap copies of celebrity clothing and accessories by the load. More of their friends like the stuff and head for the website to buy for themselves etc etc. This must be whats happening to get its sales growing in the teeth of tough times. That and hiring good clothes designers to expand the range, maintain good quality, speedy delivery and good price to the customer. No going out to the shops, just sit at home choose and wait for the post. Everyone likes to get a parcel so its a feel good business. I see that International sales are growing. This could be the key to double digit growth annually for the future. There are so many millions living in Europe, USA etc all on the internet and willing to buy if they like your products. ASOS are obviously getting most things right and I don't think there's a similar business rival out there doing what they do. So all looks good for the future so long as the customer demand for their product continues rising. In my day it was'nt celebrity clothing, it was Carnaby street and bell bottoms. If the wind got in those you could travel the length of Oxford Street in about five minutes but that gives away my age. I personally would be pleased if ASOS reached the Footsie 250 as it would bring in some institutions and a further fillip to the sp. However sometimes a business can lose its way when it becomes too big to manage or it gets sold to a bigger outfit and loses its identity entirely.

Sadly we've all lost money on shares at one time or another. A few years back I bought Highbury House with about £5k when Kelvin McKenzie of The Sun fame joined it investing millions of his own money in it. It went bust and delisted taking my bucks and KMs disappearing into the ether. He thought he could help turn the company around but failed. Like Elgin you lose your marbles sometimes. Its just an experience from which you hope to learn. Next time an idea like this occurrs to me, I will enter a dark room and lie down until it passes away. In a choice of two stupid thoughts I always choose the one I have'nt tried before. Like buying Petra Diamonds in mid 2008. A little voice said to me who needs diamonds in a recession? as much as a fish needs a bicycle said a second voice. But he bought Petra diamonds did'nt he, because they were cheap and low and behold I gifted the market £18K when I sold. Jackass.!! Panic, ignorance and greed shall rule the market sayeth the lord, and if you want to know what God thinks of money, just look at the people he gave it to say I. Perhaps I need a drink and calm down. A full bottle in front of me or a full frontal lobotomy that is the answer but what is the question?

Well you are correct in your analysis, but without access to a computer back in 2003 and assuming the ASC website was already up and running I might have learned more about their operation rather than using the FT and Stock brokers who could'nt care one way or the other. That's my fault for living in South Africa for 18 years and avoiding the real world living in the bush growing avocadoes and lychees wearin shorts,boots to keep the snakes off and cotton short sleeve shirts. No ties in 35degrees C and computers not compulsory for survival. Just a landline connection to a Jo'burg broker to make extra penniesand cold castle beer. Re clean energy shares take a look at AFC and Riddlers posts. Also their website. Moni is one acorn I've been looking at but it has already moved up . You bought at the right price. Having raised more funds at 20 odd pence I don't think the sp will fall below this level so you are safe. As you say the media has endorsed this share as a potential muti bagger but bringing it to everyone's attention is'nt necessarily a bad thing. What is a bad thing is the lack of info on how this company makes its income. The investors Chronicle claims the banks will pay a fee to Moni for each new customer it signs up for mobile banking transfers but thats all. I suppose actual mobile transfers of money are free then? I can't find out anything. I know there are vast amounts of the unbanked in India and other parts of the 3rd world but their currencies are'nt exactly top notch either. What about the competition as well. Moni can't have a monopoly on this and this will keep prices down. Re ASC the biggest laugh is the IC has often advised this over the years as a sell because its P/E is too high or its another reason they give to consider getting out. Mind you they did point out that it is one of the best performers on AIM. Trying to have it both ways IC?. All the best to those have held over the years.

Buying and holding a share in a company long term, because you believe it has a great business model and hold it despite the ups and downs of the market because you think it will continue to grow, is every investors dream if you get it right - rather like Warren Buffett. I came back from abroad in 2003 after being away for 18 years and plunged backi into the market here using a stock broker and the FT ie no computer then. I headed for the AIM market and found ASOS at 17p with a low for the year of 5p. I talked to my stockbroker and got no enthusiasm or real info on the company. I kept thinking this may be the future of clothes retailing but maybe not then the sp moved suddenly to 21p and then 25p and I thought it was too late. 5p to 25p was perhaps too far too soon. Lack of real info caused me to make the worst investment decision in my life. I was going to invest around £10,000 plus. I could have made 57X my money over 7 years by buying an acorn no business journal cared to look at that has grown into an oak tree which is still growing. Using the web means unlimited access to all markets that matter. So why should ASOS not continue to prosper?. Looking at todays sp makes me want to kill myself or just laugh at human folly. So much for stock brokers. They know as much about stocks as Gordon Brown knew about what the Banks were doing. All they do is reach for research notes and boy can they get their predictions wrong as I know to my cost. I'd be better off using a witch doctor..This is just to comfort those who like me are frustrated with trying to know what to buy and above all when. This is still a great company, but I still hanker for another acorn because the multiplier effect is a powerful aphrodisiac. After all every additional 20 odd P could have doubled my original investment. Staggering when you think about it. Works for Buffett but its its return to go for me. Good luck all !!