Member Info for utterlyclueless

Thanks for clarifying. Will be interesting to see how things unfold.

I would imagine asos would be obliged to comment on this due to regulatory reasons, right?

Yes, I imagine the direction will be higher today!

I agree, short selling should be allowed, it's part of an efficient market. Think Theranos, Wirecard, WeWork, Enron, short-sellers help identify fraud and poor companies earlier and improve the allocation of capital. It's actually much harder to make money on the short-side than the long side. Just hope they are wrong with boohoo!

Well, I guess if you have less inventory you need less warehousing.

Good point Newby, net debt has reduced this half.

Yeah, the rise in debt is a concern. It's difficult to be massively positive based on these results in the near-term. In the longer-term if they can turn profitable, then may be reasonable. For example, a net income margin of 3% on 3.5 bn revenues = a PE of 4.5 at today's market cap.

Yeah, maybe a few buys will come in as bet before tomorrow's RNS!

Tbh, I was somewhat surprise, they didn't short after the delay in the announcement. I took this as a positive.

Thanks for the link

To be honest, I haven't done a load of research on Unilever for a while, so interested in your comments. But just looking at the top line numbers a long-term profitability, I think just an average CEO can keep the cash coming in. I have a reasonably sizable proportion of my equity portfolio in Unilever, and don't expect to sell any of it in the next five years. If i had a load of spare cash now, I would likely add to my Unilever holding based on current valuations. Though, I should probably do a bit more research.

I guess that's the same for all large corporates. I like Unilever as a long-term hold. They have strong brands and pricing power. I just think at these levels they look good value for the long-term. I think the bar is pretty low for the new CEO, so opportunity to improve productivity and growth.

Yeah, I think ultimately, he wants to own more of the company, which is a positive.

Providing that the share price is below the strike price that is.

Also, if Frasers want to buy shares at the current price without disturbing the market. The can write an at the money put for say a month's time, they get paid for volatility and interest, and guaranteed a load of stock at that price. So this actually makes sense. The question then is whether the November put which is 4% of the market will convert into actually shares.

The downside loss is only unlimited on writing naked calls. The downside loss on writing puts is limited to the strike price x the number of shares

If you plan to acquire a stock. It can make sense to sell put options. If the strike is higher than the price at expiry then you get some extra income, otherwise you get some extra stock at the strike price, which is presumably a price that you think is worth paying for the company.

Here's the first result on google.

Audit testing's primary goal is to examine and confirm the efficacy of a company's controls to record its financial transactions. It tests the financial accounts and finds any errors, omissions, or significant inaccuracies.

https://www.wallstreetmojo.com/audit-test/

@Knowbodyyouknow

I had the same question. I hope it doesnt mean testing to see if asos is a going concern, that would be a concern. I guess it is a fairly generic statement so as not to give any information. Here's hoping its just due to increased rigour from the auditors in light of their past failures, and asos will be given a shining bill of health.

Yep, evenly balanced between bulls and bears. That's what makes a market!