Asos Share Discussion Threads

[farrugia] 08/4/2020 07:10

Shorters will be toasted here. Not only have the achieved an placing price of 1,560 pence but it was the existing major shareholders of ASOS that have taken 95% of the placing shares which shows their confidence in the turnaround. And they've now shored the balance sheet with an additional GBP247 million.



Placing Shares have been issued at a price of 1,560 pence per Placing Share (the "Placing Price"). The Placing Shares being issued represent, in aggregate, approximately 18.8 per cent. of ASOS's issued ordinary share capital prior to the Placing.

The Placing Price of 1,560 pence represents a slight premium to the closing share price of 1,559.5 pence on 7 April 2020.

ASOS consulted with its major shareholders prior to the Placing and approximately 95% of the Placing Shares have been allocated to ASOS's existing shareholders. This includes a pro rata allocation to ASOS's largest shareholder, Bestseller United A/S, the co-ordination and placing obligations in respect of which are being undertaken by Numis.

The following directors and executive management of the Company and their close associates have agreed to subscribe for the number of Placing Shares opposite his/her name as set out below:


Number of Placing
Name Shares
--------------- ------------------
Adam Crozier 12,820
Ian Dyson 3,205
Mai Fyfield 2,000
Karen Geary 641
Luke Jensen 4,000
Nick Beighton 6,410
Mat Dunn 3,205
Robert Birge 3,846
Sarah Holland 6,410
--------------- ------------------

[phattrader1] 08/4/2020 07:08

SP will rocket today. They did the placing at rock bottom prices.

With margins restored to H118 levels and UBS only expecting H1 20 profits of £14.1m (£30m were actuals), extending of debt facilities and this placing, we will see £20-22 today.

[martinthebrave] 08/4/2020 07:06

Placing at 1560p which is last nights close. share price going higher today IMO.

[hotaimstocks] 08/4/2020 05:53

top up at £11 or Lowe today then. not looking good

[darrin1471] 07/4/2020 22:07

20-25% drop in sales during last 3 weeks was not announced before market closed. Market may have factored this in or worse. Others here were predicting increased sales while clothing shops and Next were closed.

[darrin1471] 07/4/2020 21:40

So clothing retail stores are shut along with next online and sales over the last 3 weeks are down 20-25%
Why 20-25% ? Which is it 20% or 25%.
Is that range by region or by date? 20% week 1 and 25% week 3 or 20% in US and 25% in UK ?
I would be watching the analysts webcast at 8.30 for the further details.

[christh] 07/4/2020 21:13

UPDATE: ASOS Interim Profit Rises Sevenfold, Plans Equity Placing

[hotaimstocks] 07/4/2020 21:04

£75 target for 12/24 months then.

[farrugia] 07/4/2020 20:47

is it my impression of they've stated they restored their margins?

'-- Improving underlying cash generation; EBITDA margin restored ahead of HY18 levels (H120 excluding IFRS 16 impact: 4.9%, H119: 2.8%, H118: 4.7%)'

If so this is key - once of their issues in the past was that margins were going down. With most retail stores closed down and no competition from Next they have an opportunity to grab market share. People who used to go to stores will try buying online and will likely keep buying online in future. These clients won't mostly go back to offline retail.

[bennya] 07/4/2020 20:43

It's an interesting one and I'm not invested by the way but l think this has a lot of upside, I wish you all good luck tomorrow

[hotaimstocks] 07/4/2020 20:30

all good news priced in = tomorrow a mass exit ladies.

[sh1984] 07/4/2020 20:04

Shorters will get toasted.. ref my previous post it’s already priced in

[balaura] 07/4/2020 20:03

Equity raise which is already paid for and 200M added to the MC by the time the shares hit the market!

[sh1984] 07/4/2020 19:55

Exactly and they think I’m stupid, it’s going up and only up!

[hotaimstocks] 07/4/2020 19:54

equity raise after close of £250m

[balaura] 07/4/2020 19:53

Who cares? Shorters often cause spikes in share price when panic buying

[hotaimstocks] 07/4/2020 19:50

we had some more shorts opened before close today.

[balaura] 07/4/2020 19:39

The rumors are they are raising 200M. Meaning the MC will also increase by 200M! To sell about 15M new shares (18.8%) for 200M, the average price obtained per share should be 13p.

A total of 100M shares and a new MC of 1.5 billion (1.3B + 200M) gives a share price of 1500p after dilution.

No wonder people started to buy again after the dip at 4pm!

[martinthebrave] 07/4/2020 19:32

Looking at the chart the share price went down after the Placing was announced but then bounced back to 1560 for a 34% rise. Results were okay. Strong pre Covid with an initial 25% hit to sales post Covid which is recovering quickly. Balance sheet will be much improved. Berenberg issued a "Buy" target of £25 after both the Placing & Trading update were announced. It will be interesting to see what the Placing price is & I am not hazarding a guess but I am happy to hold these.

[paulof2] 07/4/2020 19:23

Profits are rising 7 fold against a very weak comparator and everyone already knew that would be the case. It’s still actually a low figure.

Im still unsure on this, I do see value in the long run but a 20% dilution in such uncertain times is big and although they’ve not explicitly mentioned it when they’ve spoke about liquidity testing it must be looking at close to the bounds of what they could handle or they wouldn’t make such a large dilution just for ‘safety’.

Going to be watching this all day tomorrow, interesting.

[greco600] 07/4/2020 19:21

That's fair enough I hold 600 shares.Yeah your right the market hates uncertainty hence where it currently is.The market new about this today at 4 possibly earlier and it made it wobble but didn't just drop down it held. Good luck tomorrow Steve

[haveapunt1] 07/4/2020 19:17

Yes I’m invested only with 5k, long term I think they will be fine but depends on the details. As we know market doesn’t like not having details do expecting a big mark down until clarity, and then maybe a bounce

[greco600] 07/4/2020 19:15

It's a maximum. But also don't forget profits are rising 7 fold.The market will look at a longer term which there are alot of positives. Also don't forget that cash raised isn't gone they have it the business .We could debate it for ages, let's see what tomorrow brings. Best of luck.Are you invested here btw.