Asos Share Discussion Threads

[market sniper1] 20/10/2015 12:38

ASC As Seen On Screen

Results this morning (below) well received by the market, the stock looks to have plenty of upside as long as discretionary spending does not get hit by economic matters in the future.





Broker Cantor: HOLD

Final results were broadly in line with our and market expectations. Pre-tax profits in the year to end of August rose by 1% to £47.5m vs. CFE Research £48.0m (Company consensus: £47.2m). Gross margins were reported to be up by 20bps to 49.9% (CFE Research -8bps) recovering strongly in the second half as a result of a strong full price sales mix in this period. Gross margins, however, declined by 230bps in Europe to counter adverse currency exchange movements. Costs were up by 21% impacted by higher payroll and warehousing charges offset by lower marketing. Net cash was much stronger than our forecast at £119.2m benefiting from working capital gains. The current year has started well and the company are guiding toward sales being up by 20%, gross margins being down by 50bps and operating margins being in line with the previous year at broadly 4.1%, which implies earnings growth of c.20%.
Following this update, we are retaining our FY2016 pre-tax profit forecast of £58.0m (EPS: 53.7p). The stock, which has declined from a high of £42, has started to recover from September’s low of £25. The company is now of a meaningful size with sales forecast at over £1.3bn in FY2016, has relatively strong cashflow and a ‘state of the art’ logistics infrastructure. Earnings, however, have declined over the last two years and although they are set to improve in the current year, the improvement in momentum, we believe, is priced into the stock. The departure of Nick Robertson as Chief Executive, who was the ‘guiding light’ of the business, is an added concern. The stock remains highly valued at 54.5x our FY2016 fully diluted earnings forecasts. We are reinstating our recommendation as HOLD from Under Review and our TP at 3000p from Under Review.

[liquidkid] 20/10/2015 10:31

The initial open was negative, the turnaround from short covering as 'the market' doesn't just change its view in half an hour. Barclays the '£100ers' ramping it again a few days ago has also contributed.

[harebridge] 20/10/2015 08:18

Pretty decent looking results, although a comment by a number cruncher like Paul Scott would be appreciated.

[moorsie2] 20/10/2015 08:04

The lack of growth in EPS is a major worry as the risk with this sector is big turnover little profit due to fierce competitors and low barriers to entry and the fact that your brand is seen as a fashion itself so will in time go out of fashion of the 20 somethings...

Not a share for widows or orphans..

[bobsidian] 20/10/2015 07:58

Difficult to tell in which direction the share price will go today.

Much depends on the time horizon being adopted by equity market participants.

[harebridge] 12/10/2015 12:56

A decent recovery over the last several trading sessions.

[admin900] 06/10/2015 10:33

Full year results on 20 October. I see no reason for 3000p plus.

[cleverclog] 22/9/2015 13:41

These falls are nothing for those who have stock from 80p.

I know some who purchased 5K at 35p, made a million at the top.

[tomboyb] 18/9/2015 09:23

"skinny bearded rainbow stovepipe kettle"

-

[liquidkid] 18/9/2015 09:20

ASOS,
I ordered a skinny bearded rainbow stovepipe kettle set of trading statement
and it hasn't been delivered yet. If you don't deliver now and wait until FYI
on 20th October I will have to cancel my order. Following I shall relate my
experience on to the appropriate social media and then get some results.

[admin900] 17/9/2015 14:30

From 4000p to 2500p bad don't buy untill result there me be reason behind it CEO jumping ship.

[dlku] 16/9/2015 16:11

Best to wait for Robertsons shares to flood the market


probably duming already

[williemanjaro] 16/9/2015 16:09

cottlet sold but I`m still obsessed with them :^)

[mbmiah] 08/9/2015 20:42

Best to wait for Robertsons shares to flood the market

[cottlet] 06/9/2015 18:29

has willie sold?

[moorsie2] 04/9/2015 21:38

weekend press could be instrumental on the sentiment here on monday

[salpara111] 04/9/2015 09:29

Nearly got into this at £35 but really struggle with the p/e multiple.
It now looks like £25 could be a real possibility but until the new guy is in place and has his first market update out we will not know what is really going on.
I am keeping an eye on this one but not invested yet.

[moorsie2] 04/9/2015 09:25

it has a lot more to fall - and then a takeover will happen at a premium as a fire sale.

My prediction - fall to £15 and taken over at £22

[saturn5] 03/9/2015 22:54

With the low price now is the time for a full takeover

[liquidkid] 03/9/2015 10:02

That is one big butt ugly glitch in the chart yesterday with an over 10% intraday move. Anyone care to explain the technicals or do you just strike it off as an outlier

Beaufort However, his success as the CEO is yet to be seen.
However, results were seasonal fare wait if growth is a long-term trend.
Furthermore, ASOS is currently facing stiff competition from growing online competitors.
In view of the above uncertainties, we retain a Hold rating on the stock.


"We do not anticipate any sudden change in strategic direction," said analysts at Liberum, retaining their "hold" stance.
"ASOS clearly has momentum in most of its key regions. We remain wary of the high rating but the market appears willing to accept this as long as the sales growth ... continues," they said.

[telbap] 03/9/2015 08:14

Moorsie.... He has been on the board since 2009. I expect he knows what's happening. In any case, it's all for show. Once things calm down and turn around.d nick will be back. All IMHO.

[moorsie2] 03/9/2015 07:52

if a shareholder - be afraid!

Never immediate resignation without issues - new CEO is unqualified to lead this business :(