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!!

Thanks lowercase, anything more other than Nick Robertsons, "Trading very strong" in last weeks Shares mag ??SD

I'm waiting/hoping for a Mar/Apr trading update with year end figures any day now. Hope we don't have to wait till June for finals.

sd

Welcome back SD; you do well to overshadow sd. Pretty sure that there will be a preliminary statement early April; ASOS tend not to keep you waiting, particularly as the news should be pretty good. Its a bit difficult to say what the market is expecting. sp has been pretty stable for a while and I think there is little hot money in the share.

Eric

SD: The piece in Shares last week was entitled 'Retailers suffering from winter's chill'. Brent of KBC Peel Hunt emphasised that 'retailers with newer routes to market, such as on-line specialists like Ideal Shopping are still trading well.' This 21st century trend bodes well for ASOS too. 'Chief executive Nick Robertson confirmed to Shares that trading was 'very strong'.' Piece by John Marshall who implies that he sees shares as cheap despite their high relative rating. I am hoping that the results will bring in another tranche of investors. After all, the projected pe measure then takes in another year.

Eric

It's a bit of a relief to come back to this thread after all the excitement on CHP and KMR today.
Saw AZY (?) got a good mention in Money Week in an article about Biotechs last Friday.

sd

Some of us live contentedly in a dull old world - heart can't cope with excitement. AZM moves at a nice slow pace: taking a three year view; mind, probably a 10-bagger in that time! Suspect ASC will only be a 3-bagger, though DGT and SEO could be 5-baggers! Sweet dreams!

Eric

Quite likely end of year profit taking for CGT purposes. Next year the third doubling year in a row?
Eric

Very interesting - traditional heavyweight retailer joins up & coming new kid on the block:

ASOS plc is pleased to announce the appointment of two new board directors.
Robert Bready formerly Head of Merchandising at ASOS is promoted to the board as
Retail Director. Rob joined ASOS in July 2005 from Arcadia where he had
previously been Head of Merchandising for Miss Selfridge.

In addition, Peter Williams, former Chief Executive of Selfridges, joins the
board as a non executive director. Peter joined Selfridges in 1991 as Finance
Director and was made Chief Executive in 2003.

Nick Robertson, the Chief Executive of ASOS, commenting on the appointments
said: 'We are delighted to welcome both Rob and Peter to the Board. Rob has been
instrumental in building our retail team and Peter is a highly respected retailer and financier. Both will bring a wealth of commercial, strategic and financial knowledge to the board'.

Took a little profit today as I've been concerned by the soutwards SP drift of recent weeks but have maintained the majority of my holding.

Suspect the drift south is lack of news. Thought there might be a trading statement before the close period which has presumably started; so unlikely to be any news until June. sd will probably confirm that the chart is a flag preparing for the next push north when there is reason for it, hopefully with results and trading statement. The other question is: what is the next ASOS move. Why not the US as their formula would suit and the entry costs are probably not that high. Note their sub-contrating of distribution.

Eric

Eric, 'fraid not. I think the cahrt shows a downward trend since the peak of 105p in early March, followed by successive lower lows and a lower high. In fact with the 20dma runing below the 40 dma and the SP having crossed below 95p previous low is a short signal which many may have taken advantage of, thus exacerbating the problem - or encouraging the MMs to lure shorters in further before pouncing back at them!

Given a 2 year view on good earnings growth and low PEG, with high liquidity, growing Margins and high ROCE, who cares abuut today's price, unless you are planning a little shopping spree in the market.

Would have been comforting to have a pre-close update, but does not alter fundamentals.

sd

Suspect you are right re the chart. In other words it is now in a definite downward trend and will need positive news to get it to re-assume the upward trend. It would be good to buy and tuck away for a year or two. Assume finals will be June which should also give prospects and certainly any new business initiatives. Could be that the high of 105p could be tested in advance if there are significant bulls around; the share should be held now by quite a number of institutions.

Eric

2 seperate newspaper write ups over the holiday period should see another up day 1/was vague bid talk 2/ the paper that said sell half way up the trend now admits he advised to sell to early now it is at near a 52 week high HE SAYS BUY.LOL

There was also a piece in the Times on Monday commenting in the price rise last week. It claimed that reasons included: (a) trading and prospects ahead of expectations; (b) Amazon planning to enter fashion market and presumably utilising ASOS as a vehicle. All looks good ahead of results.

Eric

eric roll on the results

Is that 'roll on the results laughing all over' as in RORLAO?

nice one eric

Just thought I'd bring this back to the top of the list with the following RNS issued to day.

In spite of being some 600k operating profit less than forecast due largely to spreading of the insurance claim, the numbers are pretty exciting. Operating margin has grown from 6.2% to 8.3% and will probably hit 10% plus this year. PE is high at 45, but the PEG at 0.50 is totally respectable for a growth story. Return on capital is a very impressive 37%.

This year, with turnover 74% higher and margin at 10% gives an operating profit of 3.34m, more than double last year. With interest earned of, say, 100k, and tax, at 30% after deduction of carried forward losses, of 0.96m, PE reduces to about 30 with PEG at a quite acceptable 0.6. Return on capital will be 38%, as good as last year.

There was net cash on the BS at 31st March 2005 of 2.06m. This will have been nearer 3.72m at March 2006 and over 6m by March 2007. What will Nick Robertson do with all that lolly - no doubt the question of dividends will be uppermost in his mind, to fully develop this company into a classic growth story to hold for the next 2-3 years and maybe beyond. Thereafter, who knows how he will choose to expand the business.

sd


RNS Number:7039C
ASOS PLC
10 May 2006


FOR RELEASE 7.00 am 10 May 2006



ASOS plc

(" ASOS" or "Group")

A leading Internet based fashion retailer


Trading Statement for the year ended 31 March 2006



* Despite the previously reported impact to the business resulting
from the Buncefield Fuel Depot explosion in December 2005, ASOS.com
sales up 42% and profit expected to be not less than 1.6m

* Insurance claim proceeds phased over two accounting periods -
further 0.6m insurance monies due during 6 months to 30 September 2006

* Strong start to new financial year - ASOS.com sales for the six
weeks ended 7 May 2006 up 74% year on year

* Confident of another strong year of growth



Nick Robertson, the Chief Executive, made the following comments:


I am pleased to report that, despite not trading over the Christmas period
following the Buncefield Fuel Depot Explosion which caused damage to our Hemel
Hempstead warehouse, ASOS.com recorded a 42% increase in sales and profit before
tax and amortisation of goodwill for the year to 31 March 2006 will be not less
than 1.6m. The profit is less than previously advised due to the phasing of the
Buncefield Insurance claim proceeds. Further receipts totalling 0.6m will be
accounted for in the 6 month period to 30 September 2006 rather than the year
ended 31 March 2006 as previously anticipated.


I would like to take this opportunity to thank our insurers, Fusion Insurance
Services Ltd, for their continued support and assistance.


Encouragingly, sales since the year end have been particularly strong with
ASOS.com recording a 74% year on year increase in sales for the six weeks ended
7 May 2006.


With the continued growth in online shopping and the increasing awareness and
popularity of ASOS amongst its target market, I remain confident about the
prospects for ASOS and look forward to a strong year of growth.


Final results for the year to 31 March 2006 will be released in the first week
of July.

stockdog thanks for update what is encouraging today there has not been a sell off on the news at the time of this post.

My thoughts too - thought there might have been a bit of a sell off from at least the short-term johnnies, but the price held up well on higher volume than the last 6 weeks.

If we can consolidate around the 105p mark for a while we should take off to nearer 120p as the next leg up.

This is no longer a share you need to watch on a daily basis IMHO (just try and stop me!) - it's a good solid hold unless there is bad news. But having survived Xmas trading 2004 with too little warehouse space and Xmas 2006 when there was a massive fire, I think the news would have to be pretty bad to stop this one in its tracks.

Speculating further on 50% increase in turnover for 2008 with an improved margin of 11% and interest earned of 150k, fully taxed at 30%, gives an increase in net profit of 60% and a PE of 19 and PEG of 0.32. Allowing a PEG of 0.60, suggests a PE of 36 which suggests an SP of 199p. Can't possibly tell where it will be by then, but the scope for further growth in SP is certainly there and all being equal we could see another 50% rise over the next 12 months and the same again the following year.

All the above statistics are greatly improved by stripping out the cash on the BS and looking at the enterprise value instread of the market cap. The real test of the management is what they manage to do with their surplus funds in the next year or two. I have confidence that they will pass the test. Equally we must surely have a great safety net in terms of who might want to acquire ASC - M&S, House Of Fraser, TESCO, even ASDA?? That would have to be at a decent premium to the current SP.

Dreeeaaaamm, dream
Dream, dream, dreeaam . . .

sd