ASOS have dropped quite significantly in the past week for no particular reason and I view this as the perfect opportunity to invest as I can see them bouncing right back up to the 5.50p mark in the next 2-3 weeks. STRONG BUY!!

http://www.lemminginvestor.com/ASOSq3tradingJan21.html?1106330764343

The 10k shares sold was after the 100k option taken up at 4.5p ???
Eric , plse send your address by email I have two copies of a magasine you may be interested in. I will post to you.

SEADOG::The 10K sale was I suspect to pay for the 100K option...normal practice...no risk to holder! John

Very good article posted by elrico above. Refers to ASC as 'infinitely scaleable' and can't see a limit to their growth at the current rate.

Having said that, the break S is a bit scary. Decided to sell 10K first thing and got them out at the overnight price (before 08:00). Not negative about ASC, of course, but had to have a stake in the supersonic NLR rise.

Eric

Having decisively broken the 70p support, the next support line seems to be about 60p last seen in September, or even as low as 45-48p from August, IMHO.

No point in selling now (unlike what seems like a bunch of probably well-satsified investors deciding to put their profits elsewhere after the recent stagnation in the price) , but would you buy more at this lower level when we get there?

Any views?

Like I warned last week I knew of someone that was selling 200k shares he bought at 8p along with me. If anyone had of listened then well done and could have bought back at a cheaper level.

Woodie and Eric,

As for asc been overvalued then people are allowed their own view. I apologise to anyone if they disagree and perhaps you see different. I hope you are right to stick to your stock. You will most probably know more about it than me.

The last thing i would want to do is insult anyones stock picking.

I am no chartist and wouldn't even try to comprehend the charts but doesn't the graph show sideways movement over the past few months rather than an uptrend??

Anyway as for the value comment, the market will always determine the true value in the end!!

legend, stockdog

Both very good posts and appreciated; by me anyway. legend: well done for avoiding a bit of crowing: by the way, I remember saying that part of the profits should be taken on BNH so I suspect we are even! In fact, I have taken my own advice, plus taking into account yours and other remarks, and my holding in ASC is down by 50%. I think I have been learning that there is a significant diffence between the company with its prospects and the value of its shares with associated trading. If you have any doubt about the prospects for ASC I suggest reading the reference in elrico's post above (I'll come back to that when I have a moment). But the charts are the charts and technical analysis is technical analysis. The charts have broken S from a converging triangle and that is a sell signal. I suspected the dam was going to break this morning and sold 25% of my holding - redirection into NLR and BTG has already paid off.

So, stockdog, where from here and what action to take? First, if you are in for the long-term and don't trade a share until you come out, then have no fear, read the elrico quote, and stay for the duration. You have a more successful internet trading company than lastminute.com and you hold a stake in it. Second, if you are a short-term trader, then its still a sell until it hits a support level and that is clearly 60p. That then could look like a head and shoulders and there would be a question as to which way it would break from 60p. From a TA point of view it could be downwards. Therefore its still a sell and a buy back at lower levels. Third, if, like me, you are a curious mix of investor and trader (I invest my wife's half of the funds and trade mine - both have been heavily into ASC), then the situation is more complex. I am running my CFDs strangely enough and will add to them at 60p. I am still switching investment funds out of ASC but with the objectives of: (a) reducing exposure to a single stock; (b) taking some really strong opportunities elsewhere (including SEO, MLS, NTR and BTG, so far). So what's the difference between an investment and a trade? you might well ask! My point is that the purchases on my wife's account are made on fundamentals, backed up by the charts for the timing of the purchase, even though I may not hold them for long.

I hope that is helpful and doesn't confuse you as it would have confused me only a short time ago! What does my guide and mentor, johngtudor, think? Are you there, John?

Eric

Hi Eric: I think you have summed up ASOS pretty well. What we are looking for now is a 2 day close above a potential support level...it could be around current SP levels. I am monitoring it closely now and will comment as appropriate. John

john

Thanks for that. Beginning to see the sense of your 2 day rule! Strong market today, so the break S from the 70p support level has not been taken up (yet!). Suggests that the fall, as suggested by legend, is primarily profit-taking and not being interpreted as a sell by traders.

Eric

Eric: A couple of points: 1) EOD pretty important as it will confirm whether or not we have seen a 'Bull Trap' by the MM's which will have shaken out the shaky holders yesterday. That's another reason why I always use a 2 day close to confirm a change of sentiment UP or DOWN! Still the MM did have an excuse to lower the SP given the recent option exercise. 2) Someone may have been reading our BB exchange and discovered that the mega BULL EWRobson has sold down his holding!! Joking!

John

johngtudor,
It had not gone unoticed here either, but I failed to switch into NLR so far !!!! still holding SD

john

lol! :-) Positive close today. Tomorrow should be decisive regading future trend. Have been trying to locate the ASOS of 2005; i.e. the newly emerging company. Need also to have a company which is: (a) consolidating its breakthrough; (b) moving on to higher ground. Found it - the name is ASOS!

Eric

legend no offence taken the market is about different views if everyone had the same view there would not be a market.the stock over the last 2 weeks has caughtme with 2 views.my spreadbet was stopped out at 69p & 68p with regard to my long term holding iam still holding the growth story has not stopped yet.the 70p level first mention by me on this bb or before shares mag highlighted IS STILL KEY IF IT CAN GET ABOVE IT AND STAY THERE ON WEEKLY CLOSE WILL BODE WELL FOR SP.cheers woodie

WOODIE: agree, despite the scurrulous abuse cast at me on this column! Took out another CFD today to prove my loyalty!

john: reading of the chart? Possibly the next significant move will be news driven, which almost certainly implies up.

Eric

Eric: There is no precise chart level that you can hang your hat on...but it is for sure around these levels that ASOS must find support or fall further. I recall we agreed on 70p some time ago..it could be lower around 63-65p..but key is for SP to bounce from somewhere in this price range. Right now the RSI and MACD are still falling and there may be better places for your money right now! As stated before I always find the closing price on Friday (EOW) to be an important close so await that price with interest. Good luck with your new CD!

John

john

Thanks for 'professional' technical analyst viewpoint. Strong write-up by John Marshall, my fundamentals guru in good write-up on Internet stocks. Nothing really new, although reports that sales in January 100% up on last year. Seymour Pierce believes that total sales this year will be up 80% and JM assumes they will revise profit forecasts up from 1.55m in 2004/5 and 2.25m in 2005/6; the latter I guess to 3M or 3.6p per share (pe of 18). Costs will benefit from the move to the new warehouse. He believes there is still scope for substantial growth.

So ASC are quite likely a sell on the charts, although Shares hedge their bets, but a buy on fundamentals. Having taken good profits at around 78p, I have taken out a further CFD today. It feels like a nil cost because the money wasn't there yesterday: arisen from gain on SEO. OK the price could go lower as more buyers at low levels are shaken out but any buy at around this price will prove good in my view; always difficult to hit the bottom.

Eric

So what price did you pick these up john????

Where do you see sp going from here???

IMHO - I think the 70p support level is where we've just come from in a volatile sort of way, not where we're about to end up which is back on the more solid 60p level. This, after a shake out of a large number of happy profit takers, will provide a sound basis for the next growth line, but at somewhat less than the 45 angle we've seen over its first exciting year.

I can't see much likelihood for any further announcements until the week after the 31st March end of year. So expect life to be relatively boring until then, when we shall see whether they have improved on market expectations or not.

Anyway, what do I care? I'm in for the duration.

stockdog: good way to look at it. 45 degrees depends on the scales! But if last year was 45%, say doubling in the last six months; then this year is probably doubling in the year from a 60p base or half the gradient. Good to have that sort of banker in your portfolio. The real excitement is elsewhere - more and more convinced that SEO is the ASC of 2005! Worth reading recent posts.

Eric

Thanks Eric
I'm with you all the way on SEO (and a number of other stocks I see you posting on).
SD