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!!

I agree with the shorters. Posted my reservations earlier on the thread while they were in a strong uptrend but warned against going against the flow.

My fundamental opinion : they sell crap , no barriers to entry , short term fad and the market cap is a joke.

Just my opinion but wouldn't be suprised if these were sub 30p in not too distant future looking at the technicals and lastly I have no position at present.

Dil - whether or not what they sell is crap may be an interesting debate, but misses the essential questions:-

1) Do they sell it? Answer: yes, lots of it.

2) Are more people going through their internet doors whilst those visiting high street stores diminish? Yes.

3) Are the %age increases in the usual number impressive? Yes.

4) Does cheap fashion sell? Yes - remember Gerald Rattner?

5) Will the central warehouse facility be a profit-improving investment? Yes.

6) In spite of no barriers to entry, are there other similarly successful entrants? No.

7) At whose expense is the market cap joke? Yours, I suggest.

If you don't like the share, don't buy it - no problem. If you don't like the people who have bought it - that's your problem? If the SP falls to 30p that will be Mister Market laying claim to his prerogative - not yours.

No offence, just defending Master Eric's front gate - it's in my nature to do so.

SD

Excellent post, stock dog. Now I know what your job should be, even if it isn't at present. 2 people in Europe? I have one dog guarding my front gate at preent, Honey. Now, with you, I have two.

Puzzled, Dil, why you bother with the post or is it just sympathy with we sufferers of the decling share price. Yes, I did sell out in the 70p's. Yes, I have opened 4 CFD in the 60s and will, no doubt top up, if I have a chance, at current levels. sp is well below the appropraite value on the basis of fundamentals. Will explain that - if you are seriously interested.

Eric

Speaking of crap, Diligent research has revealed that a few years ago, elephant dung won the Turner prize and thousands queued to see it. One man's crap is another's work of art.

Well, squidd, strictly it wasn't one man's crap, was it now!

SD

stockdog , no offence taken , debate is healthy.

Eric , just posting a contrary opinion , one I have held through the rise as well as now. Best hope imo is they exploit their "first mover" advantage and keep evolving along with changing fads.

Squidd , I wasn't one of them :-)

Good luck I'll leave you to it from hereon in.

Nice little mention in Sunday Times Money section today.

Interesting that Simon Cawkwell is reported as saying that he is still encouraging shorts in ASOS. Good price rise today. I have a wee bet, if there are any takers and there is anyway of proving it - Evil Knievel has closed his short! Why! Because he was telling others to keep their's open, so he can close first at the lowest price! lol! No fool, that man, nor is he lovable, except by himself!

Eric

http://www.timesonline.co.uk/printFriendly/0,,2-529-1501870,00.html

SUNDAY TIMES

We asked leading fund managers and stockbrokers to pick their favourite AIM shares.

Asos

WITH a market capitalisation of just 42m, the internet fashion retailer is still a tiddler. But Nick Raynor at The Share Centre, a stockbroker, thinks it has the potential to grow into a star of the future.

He said: Asos is the real growth story among retailers. It performed superbly last year and still has further to go.

He believes now is a good time to invest. Since hitting a high of 89p in November last year, the firms shares have slipped back more than 30% to 58p. It made its first pre-tax profit of 126,000 in the six months to September 2004 on turnover of 4.7m.

Good one, marketmaker; I saw that. Moreover the assertion is very reasonable. Good day on the market and hopefully the start of the recovery. Going into March we are only a month away from good trading figures: the hitwise figures (post 1124) continue to be good (double last year). The future is good; the future is ASOS!

Eric

Feeling cheerful about my buying more at 58.25 on Friday. Today has been 85% blue with a good strong lift off the bottom with reasonable volume of nearly 2% of issued shares traded including a good 300k protected buy reported at near end of day. Pressages more blue tomorrow, I think.

As you say, Eric, only 31 days till we should get a TA before the close period up to results.

SD

Here we go, nice firm start, solid blue in good sizes - up we go again!

SD

about to light fire ....!

when are trading figures due to be released Eric??

End of year is 31st March - imagine there couuld be a TA any time the first week of April
SD

Always operating on the basis that someone, somewhere knows more than you...and usually that 'something' is reflected in the SP, we were clearly on the right path when we exchanged notes on this BB about the Wharehousing issue, and then the flirt with the 200 day ma concerns. I suspect that the SP has some consolidation to do for a while before we can determine a good buy-back price, meanwhile the 'Big Bad Bears' have it! John

Oh ASOS! as you might say.

Still after the initial mark down on the disappointing TA, we seem to have recovered to a tad above where I bought in last week at 59p bid price. Nice two way trade between believers' buys and shorters/institutions sells - the latter lightening the load now that they see the share has last momemtum for a while.

Shame about the warehouse issue, but at least they can announce the new one at the same time. Logistics will always be the name of the game in any mail order business.

So, onwards and upwards from what now seems proven as a good solid support level of 60p ish, alas bounded I fear by a developing level or resistance at about 67p. Ah well, 1.00 by Xmas still seems possible.

Eric, hope you have managed your 60's CFDs well - I'm sure you have.

SD

I wouldn't buy back yet, the price closed at below the 59p mark. This gives a TA guide for lower (so someone who knows a lot about this tells me) are we also sure that the warehousing / supply is the only problem, sales may be up but if you sell items cheap, at a drastically reduced profit, then they always will sell.

Hi, folk. Away from home and just popping into Chichester librry occasionally. So picked up the news this morning - reaction was to buy some more, long term, on my wife's account. Just sticking with the cfd's, stockdog: not a problem with some good margins on SEO and GMC, I'll just sit back and wair for the recovery. Good to get this news out of the way. As jgt says, this has been in the price for a while: one clue was the drop in margin over the Christmas period; another clue was the indication of warehousing problems although they were making light of it. Could they go lower? chart-wise, yes a bit with a support level around 55p and a pe of around 35 at that level. Q1 likely to be taken up with sorting out warehousing. Then they should get quickly back to the trend line with overheads being relatively static against sales. Should get indication of trends in April but it may need the prelims with 1st quarter trading before we start to really move again. Happy to rebuild my position at these lower levels.

Eric

Hi Eric, thought you'd been a bit quiet on all fronts. How's Chichester?

I agree with you that SP is going to hover around where it is now 58.50p ish for a while forming Cerberus' otehr shoulder in effect.

Then where - anything sensitive could send it down to 50p ish before finding support again.

But results no worse than now indicated at prelims stage with positive news on warehouse and margins could start the steady climb again.

No doubt the momentum has been lost to large extent - it will be a more stately progress from hereon in. Although it must be said the SP proved remarkably resilient today. As jgt would advise, let's see the EOW close and sleep on it over the weekend.

SD