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!!

sandrew

exactly my position!

capa

what is the timescale of these waves? is it linked to the results?

JJ

107606

I am no chartist but I know someone that is.

His view is that for the chart to behave perfectly the 5 will be reached by September next year. The waves are equidistant so 1.40 by Feb the next wave takes us to May/June and hey presto !!

Stepping back for a second you have to realise that this scenario depends upon results being great, and all other things being equal (interest rates/terrorism,stock market crash etc etc).

It also takes a great leap of faith to believe that ASOS can be valued at 300 million by next September, if you cannot see this being possible forget the 5imo.

What would need to happen ?

Profits before tax of say 6 million for the year end accompanied with a trading statement so upbeat it makes you swoon.

Broker estimates of say 15 million profits for yr end 2006 and then the market to re-evaluate favourably.

Far fetched ? Who knows, but I remember an out of town retailer not so long back called Matalan.

capa

Eric - Hurry up I can't hold AZM back any longer. Feel like the boy with
his finger in the dyke.

capa

Thats dyke as in the ones found in Holland in case any of you with filthy minds get the wrong idea :-)

capa

capa, johngtudor

Thanks for that, capa. Done CFDs for ASC and AZM this morning. The problem with the sp ramping with both stocks its a real problem being out of the market for effectively 3 days. There seems to be no alternative with blue index though otherwise their service is fine. I had freed some additional funds but decided to go directly into ASC at 92.5p rather than take the risk of waiting for Monday, although I could then have made the funds go three times as far. Probably best to take the CFD thing a step at a time. We are getting pretty close to the interims and I see the price going through 1 early next week in anticipation. What a great share!

Eric

well done to all asos holders that kept their nerve... my beloved BNH have bounced back to over a pound again!!!

I don't like to talk negative on bb, but ASC is on a p/e of 100+... any bad news (not that i assume there will be) with a company on that sort of p/e will drop off potentially.

Disagree legend about the p/e. For it to be 100+ the eps for the year would be around 90p. I think this will be beaten come the interims


capa

Just added 4000 at 87.5p. Definately my last purchase.

capa

legend

Reasonable concerns and the chance of companies dropping off is always there. However, you do need to take a total perspective rather than picking out a particular figure. A pe is historical and, in the case of ASOS for instance, virtually meaningless. If you want to follow this through, look at my post 760 in which I try to assess the target price for first quarter next year (essentially the finals) and arrive at a figure of 150p. capa then comments that a chartist has arrived at 140p as the figure for the first of three waves of expansion. Interesting that the conclusions are so close: the fundamentals and the chartist view. If you have any concern about the price movement, i.e. you are wondering whether to hold or buy, then have a look at that post, together with the last finals and subsequent trading updates and do come back with any provisos or different views.

The 150p projection is essentially based on the ASOS as we know it: the fashion internet business targetted at internet savvy young people, primarily females. Having formed a reasonably well researched view, I almost take the movement to 150p as read: I will be mightily surprised if there is any significant hiccough, although I don't deny the possibility. The question for me is 'where from there'? With the extremely rapid expansion of the internet market, it may be that they concentrate on broadening their customer base, their range of offerings and do more of the same. capa's third wave, if not second, (post 761) must be dependent, I would have thought, on an expansion of the business, possibly by takeover, possible by generic growth which draws far more buying (presumably fashion) onto the internet.

Shares mag. this week might give a clue. In an article on Inflation, Timon day gives his 'naps' - what to avoid and wahat to buy: these include selected utilities and high yielders; "Buy retailers like ASOS and Ideal Shopping (IDS), which are cheaper than high-street outlets Like M&S that charge too much. Thus ASOS is a retailer which benefits from (a) market leadership in a specific sector; (b) quality reputation; (c) extremely low overheads. The low overheads, together with convenience, will drive consumers to the Internet (and digital TV) buying. How will ASOS exploit its leadership role; what markets will they espouse - in other words, how (not whether) will they tackle phases 2 and 3 of their expansion?

Eric

Eric:
Did you get my email???

Seymour Pierce has recently upped ASOS from buy to outperform which may have helped the recent rise.

capa

capa

Good news re the Seymour Pierce 'outperform' guidance as they are the house brokers. Confirms the confirmation of confirming news at the interims!
Don't believe that that was your last top-up! Your still light at under 50% aren't you!

Eric

Eric

LOL, yes, should have put "probably" my last top up.

Done some quick calculations and ASOS represents about 35% of my holdings.

capa

capa

All the respectable people, like johngtudor and EWR, have 50%+. Sandrew is excused as she is a major shareholder in PET. Even AZM doesn't let you off the hook! Good to see finally become probably.

Eric

SEADOG

Not arrived yet but may be coming via sea-mail!

Eric

Afraid I come in at a measley 23%....not a patch on you guys! Anyone with lots of spare time on their hands and good with charts and the like?? Couldn't do me a huge favour and have a quick peek at DFD for short/med term. Humour me please.....I'll put the kettle on.

Eric
Sent via moneyam private email yesterday pm

Sandra

4 hours and no reply to your question on DFD. I hope the kettle hasn't boiled dry; almost time for the afternoon cuppa! johngtudor is your guy for the charts; we know he is tied up with his FTSE program but, as your computer wizard, you can no doubt get him directly. Not a chart guy myself, but a 'fundamentally good' fellow so I'll give you a reaction from a quick perusal.

First, they come across as 'fundamentally good'! I like the bit about the rehabilitation of those suffering from debt. We've seen the attitude now being taken to comapnies who fleece those in debt and DFD are the opposite. As legislation takes effect and makes companies put their house in order, a company like DFD should prosper. The chart shows a breakthrough to new levels. Curentt trading is up 63% and results should be in line with expectations - this news has sent the already rising price up which is surprising in one respect. There is clearly a delay in the process of recruitment and bringing new consultants on board. So company prospects are clearly good, they are expanding rapidly and good get the reputation as a leading 'white angel' in an avaricious market-place. The question I would have would relate to the cap. of 37.5M at 125p. which seems to accommodate a lot of growth. 63% growth will still be under 7M and they are probably honour bound to keep margind reasonable. At 15% we would have a pe of something like 35. Probably a good long-term investment but not overweight (like ASC or PET)! perhaps good to put some ill-gotten PET profits in!

Eric

sandra

DFD looks interesting but not sure that now is the best time to get in. In a few weeks, I believe the lock in period following float is due to expire which could mean some sellers.

Erring on caution it may be better to leave for a month before buying, assuming a PET holder could ever be cautious.

capa

sandra

have held DFD for quite some time. Currently over 70% paper profit. Less than 80% held outside founders/family. Have heard institutional interest awaiting sales after lock out period expires in December. Am unsure if this will affect the SP downwards or upwards. Anyones opinion welcome. ...Also hold ASOS and PET and am regular reader but not contributor to BB's.