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!!

John Marshall writes, "Online fashion retailer ASOS has again underlined its ability to shine amid the retail gloom after unveiling another incredible hike in top line growth. The London-based firm saw sales soar 90% in the 12 months to the end of March, while the trend has continued since then also, up another 80% in the last four weeks.

This is a staggering performance when drawn against the beleaguered trading backcloth experienced by many retailing companies. It also implies that the company will post pre-tax profits of around 6.9m for the year to March, after factoring in 1.1m of one-off costs, a stunning 38% higher than the 5m or so analysts had originally forecast.

Such a stellar trading performance speaks volumes about the retailer's savvy online fashion strategy. Investment continues to be ploughed into the company's
website, while ASOS is also striking an increasing number of deals to sell third-party branded products, including French Connection and Kookai.

This will also bolster confidence in the company's ability to hit taxable profits of around 12m to 13m in the current year, which runs from the start of April through to the end of March 2009.

Analysts at stock broker Numis remain among the more optimistic, believing that pre-tax profits could go as high as 13.3m this year, implying earnings of around 24p a share.

House broker Seymour Pierce remains a little more cautious with a current full-year profits estimate of 12m pencilled in, although there is a very good chance of this figure being adjusted upwards over the coming weeks and months. Share price targets for the stock are currently pitched at around 390p to 400p level, roughly a third higher than the 300p at which they currently change hands.

Shareholders will also be encouraged by talk of dividends. ASOS has remained off the dividend list so far due to hefty financial commitments to fuel the firm's growth strategy, but CEO Nick Robertson admits that talks are now taking place at board level about dividends, although a maiden payout looks unlikely until next year at the earliest."

Shares says: NICHE RETAILER SHOULD CONTINUE TO PERFORM WELL, ALBEIT AT A LESS DRAMATIC RATE IN FUTURE.

Yes. Probably only about 1/3rd rise in the sp per year from now on. Boo-hoo! Mind that's compound implying 700p in 3 years time. Could just about live with (off?) that.

eric what do you make of the rns today
PLC
02 May 2008


FOR RELEASE
7.00 AM
2 May 2008

ASOS plc
A leading Internet based fashion retailer
('ASOS' or the 'Company')

Change of Nomad and Broker


The Directors of ASOS wish to announce that JPMorgan Cazenove has been appointed
as sole Financial Adviser, Nominated Adviser and Joint Broker to the Company and
that Kaupthing Singer & Friedlander Capital Markets Limited has been appointed
as Joint Broker to the Company, both with immediate effect.

I've never seen a reference to "Financial Adviser" in an RNS re appointment of NOMAD/Broker before. Why do you need a Financial Adviser? Perhaps, merely to fend off the takeover offers!

Any views when this current minor retracement will bottom? Trying to get, my timing right for once.

stockcdog thats was my first thought.with the retrace there is support between 2.50-2.75.

I had just taken the appointments as adding a bit of beef. They are coming onto a lot of institutional radars. Joint brokers is interesting: you would tend to think of fund-raising; the only reason for that might be a move into Europe of, I wonder, US.

The retracements tend to have been about 40p. The last one was really just a move with the market generally. I think ASOS is likely to be the focus of positive comment and institutional investment. Its more likely therefore that the sp moves ahead of the game. This is probably just a bot of profit-taking with relatively low volume.

Eric

taken from another b/b old shares chartist
Zak Mir



Reged: 28/06/07
Posts: 142
Re: ASOS ASC [Re: Malcolm Stacey]
#419733 - 01/05/08 08:25 AM Edit Reply Quote



The shares look as though they are in a "settled" ascending price channel, with decent upside yet to come. Above the floor of a July 2007 channel at 270p the upside is the 2007 resistance line projection at 350p.

nice rise today

tree-shake, or genuine double top/h&s? any views?

stand to be corrected but reckon just a retracement. There is too much good news together with buy recommendations for this to fall. (Nothing wrong with a trailing stoploss though

sd I don't see a double top, rather just the vagaries of trading: the time period is too short. Re Woodie's quote of Zak Mir, I can see his point about a July support level of 270p but but not his resistance projection of 350p. Taking one of Zak's favourites - that a major price revaluation takes place in three equal steps - we have had two 50% steps: from 120p to 180p and from 180p to 270p. On that basis the next step takes us to 400p. For that to happen we probably need an analyst concensus, possibly following the annual results and trading statement, that the current rate of growth (say 80% p.a.) will continue for at any rate not less than three years. Not an unreasonable projection.

NEXT results RNS shows ASC in comparison. Unfortunately their internet operation is consumed, I assume, by NEXT Directory. Its somewhat surprising to see their aggressive expansion of high street shops considering the level of competition from the internet; they certainly don't seem to be changing their emphasis.

Eric

Eric - just feeling a little sensitive. Currently swapping my ASC holdings out of my trading account into my SIPP. Decided to buy the SIPP, hope for SP rise to cover dealing costs then sell the trading account. 297.50p of my break even, being greedy now for a quick profit. Of course, it is safer to sell first, then hope for a small dip to cover dealing costs before buying the SIPP, but then there is no upside. ASC currently therefore 25% of my portfolio instead of the more sensible 12.5%. Will we get to my initial next target of 360p before I need to sell half? (School fees, summer holidays, house subsidence - that sort of thing!). We've recovered 2 days in a row to 300p by EOD - a sign of strength I feel, with the daily dips by MMs trying to shake out some loose stock to replenish their near empty coffers.

sd check out kenz and hms for your sipp---long way to go and in the best areas.

thanks

sd - I certainly would do it the same way. If you did buy for your SIPP at 297.5 then you already have covered your dealing costs. Its a matter of trusting the charts, reflecting a level of demand to add ASC to portfolios. The run would only stop, I suspect, if either news was not as good as expectations, perhaps in trading report at the AGM (unlikely), or analyst views move to a consensus that the sp is looking too far ahead. Current broker sentiment is strong - 10 brokers on Hemscott. Incidentally, www.hemscott.com gives good free information and financial analysis. Good luck and many juicy bones.
Eric

A good post, but didn't deserve two entries!

eric here is zaks reply notice the change in wording "of at least"
"zak out of interest how do you arrive at 350p & is this still relevent? tia"

"Drawing a resistance line projection from August through the last highs of 2007 gives a target of at least 350p"

Thanks Woodie. I'll take 350p (at least) as next port of call and we can then set our sights on 400p!

from todays ft.
from todays ft.
Brokers warm to Asos flair
By Peter Garnham

Published: May 13 2008 03:00 | Last updated: May 13 2008 03:00

Asos , the online seller of celebrity-inspired fashion, was in focus yesterday after Cazenove initiated coverage of the stock with an "outperform" rating.

The broker said the speed of growth at the company, which is the UK's second largest online clothing retailer, was "staggering".

Based on the company's ability to convert sales into cash, the broker said Asos shares were worth 387p - 32 per cent above last night's closing price of 293p, down 2.3 per cent on the day.

Shares in internet retailer ASOS (ASC) rose 2p to 295p as Daniel Stewart reiterated its 'buy' stance and 390p target price for the shares. It said it is forecasting compound earnings growth for the company of 56.5% during 2007-2010. It added that its price target is based on a PEG of 1.1 times for ASOS, which is below the peer group average of 1.4 times