Asos Share Discussion Threads

[festario] 19/10/2016 15:16

Yet today, it's one of the biggest risers.... it really makes no sense.

[moorsie2] 18/10/2016 18:05

Hosede - I have to agree

The valuation makes no sense..

Boohoo and Zalando are making great progress in this retailer space and Amazon are always there - so the myth that this will back huge profits in the future to justify such a multiple is fantasy

Jefferies have downgraded to a £40 target - but more brokers need to get brave and value this correctly

[hosede] 18/10/2016 17:44

Prce 5000p profits 29p :Fourth consecutive year of declining earnings: there seems to be a factor of ten missing somewhere here. Surely someone must twig - eventually!

[telbap] 18/10/2016 17:00

Liquid, you lost me in para 3! Bottom line appears that they have either got clever and been burnt on fx markets, and are.now rolling up their positions hoping the rate plays out their way, or, they got clever and won!?Which one are you of the opinion of?

[liquidkid] 18/10/2016 10:20

It is not sheer coincidence that the FX losses are occurring on the expansion of the US market.

Colour it this way - To sell the wares in the ecosystem of the Tech Mecca of the world, ASOS has to hedge at the time of sale.

This is where the suspected page is turned on the accounting sorcery book over to the section on the dark art of cash and magic margin management.

The FX contracts mature in a 24 month period from now so it is booked at a MtM loss in 2016 and the cash is held in the margin account of the counterparty. It is still ASOS' cash on the books but is earmarked for settlement later.Technically speaking these contracts could be rolled and rolled out to far far away dates.

Hedge accounting
of course FX sales are more> than FX costs so that is where the sails are unfurled to head for a tailwind of weak sterling.

More benefits is the losses become a deferred tax asset of 13mn so is a benefit.

[liquidkid] 18/10/2016 08:02

Read that as a BOTTOM LINE LOSS of £43.1 million.
From a comprehensive £40.8 million Profit last year.
What went wrong?

[hosede] 12/10/2016 13:30

Henry
agree with most of what you say, but profit growth in the last few years has been meagre to say the least. cashflow per share has though been much better

[isaready] 10/10/2016 13:45

Henry,

I have been looking at liquid shares, shares which if you have cash, to trade in and out of.

This has always been an active stock. I'm thinking whether the stock allows me to say buy 50k sterling in shares which is piddly, allowing me to make 2/3/5% on the trades each week or month.

[henryatkin] 08/10/2016 10:22

How do you expect to be treated when you are as thick as two short planks, have no qualifications & no skills. Give them an inch & they'll take a mile types. I'd think its probably similar at Amazon.

Great things about this company:

I'm up 42% year to date.
13 straight years of sales growth.
11 of past 12 years cash flow per share is greater than EPS.
No debt.
No Pension deficit.
13 years of growth in net tangible assets with growth of 47,000%.
ROIC 40%
EPS growth 50%
Would be the fastest growing company in FTSE 100 if it swapped its listing from AIM to main market.
High P/E keeps foreign predators away and ensures I get to profit from gains in future growth.
Very liquid to trade with £25k EMS.

[kaka47] 07/10/2016 22:28

Just seen BBC report on ASOS how badly they treat their workers shame on you ASOS

[isaready] 05/10/2016 17:03

If I find out one day I will let you know.

I am not in these at the moment, was thinking of doing some bigger trades with some cash as its a very liquid stock to try and make some money on trading ranges.

SOU, not in that either, well done.

[telbap] 04/10/2016 18:43

Isa.....let's hope he sold, or down to about £8 million now!##:#*@I am sitting on about 400% profit in sou. Waiting on a drill to take us further, thought that was extreme luck, but compared to this, a mere bagatelle!Hope you are still in from a nice low point.

[isaready] 04/10/2016 12:00

telbap £19 shares. Imagine those who said, should have held the £2 share.

I knew someone, no longer in contact, who had 150K of shares at 80p. Imagine what he made in terms of profit. IUf he sold at £70, that's 13 million profit.

Come to think of it, I think I will try and contact him and see if he made the 13m profit.

[bulltradept] 30/9/2016 19:30

MPs to investigate Asos working conditions

MPs are to investigate working conditions at the online fashion retailer Asos.
It is after an investigation by Buzzfeed News revealed workers at its warehouse near Barnsley said they were "treated like machines".
Some claimed they had to go without regular toilet or water breaks.
The company calls the accounts "inaccurate", "misleading" and "out of date".
The three-month investigation heard claims of exploitative contracts, difficult targets, pay being docked and intrusive security searches

[hosede] 30/9/2016 15:18

Telbap
Yes - an extraordinary anomaly. Profits have not really increased significantly for years and there's no dividend. But someone once paid about £1 million for a single tulip bulb: seems quite similar to me.

[tonyrcarr] 30/9/2016 14:47

Break through the 52 week high - onwards and upwards

[tonyrcarr] 07/9/2016 18:06

Heard a rumour that ASOS is providing the GB kit for the Paralympics. Should be a nice PR boost

[telbap] 03/9/2016 01:43

Asos is such a weird anomaly, no way to second guess it. Should Have held my 19£ shares, ho hum, such is life.

[tonyrcarr] 02/9/2016 11:48

The market doesn't seem to care or were expecting much worse.

[umitw] 02/9/2016 08:19

Is it 24 p per share reduction in value?

[harebridge] 02/9/2016 07:53

That's £20 million down the toilet then. Bet that doesn't include court costs & legal fees, taking it to over £50 million.

[donaferentes] 05/8/2016 18:10

See Note 19 to the accounts for a detailed analysis of currency risks, hedging and effect of 10% +/- value of Sterling - exc. China - now discontinued - seems broadly neutral against $, € and Aus$.

[hosede] 05/8/2016 13:34

sadly analysts simply tell people what they want to hear

[dangersimpson2] 05/8/2016 09:19

Why? I wouldn't just take the Daily Mail thinks so as a good source! Overseas $ earnings will be higher when converted to £, € slightly higher, UK earnings will be lower due to higher input costs. Would've thought broadly neutral impact with 39% turnover in UK. UK is lower growth but still the largest market so will reduce in importance over time but this is over the very long term.