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!!

maybe this is just a bout of profit takers? I would have thought its as cheap as it can go, but what do i know? i thought it would break a 1 today!!

Lets wait as EW says until 1200 when the analists have a briefing. the price is slowly moving back up !!!!

Ealier this year we saw a similar collapse in the price which soon recovered. As EW says, lets wait until noon for encoraging news.

Sellers are 750K buyers 530K at 0927 so its not a one way street, an opportunity to top up ????????

I don't want understand why investors are pannicking selling. Read this:

Nov. 29 (Bloomberg) -- Asos Plc, a U.K. retailer of clothes,
jewelry and shoes, posted a first-half profit as U.K. demand for
Internet shopping rose.
Net income for the six months ended Sept. 30 was 126,000
pounds ($238,000), or 0.17 pence a share, compared with a loss of
283,000 pounds, or 0.42 pence, a year earlier, the London-based
company said today in an e-mailed statement. Revenue surged 72
percent to 4.7 million pounds.
Asos, which sold shares to the public for the first time in
2001, said the number of people registered to use its Web site
has increased 14 percent since August to 419,000. British
shoppers are expected to spend more than 3 billion pounds in
December, Asos said, citing a survey by National Statistics, the
government statistics agency.
The company is looking for a new warehouse and plans to move
operations by the second quarter of the financial year. Until
then ``interim measures have been put in place to cope with the
Christmas peak,'' Asos said.
The stock slumped 11 percent, the steepest drop since Aug.
6, to 73 pence as of 9:33 a.m. in London, giving the retailer a
market value of 51 million pounds.
``The warehouse issue hasn't affected distribution in the
first half and it doesn't seem to be complex,'' Iain McDonald, an
analyst at Numis Securities in Liverpool, said in an interview.
``If there's a bad thing that people are looking at in the
statement, that may be it.'' He has a ``buy'' recommendation on
the stock.

Topped up at 69p - owe this some loyalty as original purchase was at 10.13p!

SEADOG: I would not buy back the shares yet....intraday movements are often tricky, but we are flirting with the 50day ma which I suggested a few days ago would be my re-entry point, but the chart signals are not yet suggesting a SP rebound. We may see more positive reaction later today after the Analysts briefing at 12:00 or so. From a fundamental perspective all the statistics are very bullish, and so I see no problem on that front. No, as always we need to be patient and wait. Hope my comments are useful. John

Im with you jj50 I bought at 10p , 41p and just tooped up at 69p. Lets hope we are right. Now 35% 0f portfolio

buys just in front of sells so why down 11% on the day????????? My goldfish could be an MM! There certainly arent any brains required

IVE GOT IT!!!! new bloke started this morning and>>>>>>>> HE'S COLOUR BLIND!!!!

willfagg: Brilliant...spend more time studying your goldfish! I have given up tryting to work out MM's movements, but there is normally a reason behind these moves ... and sometimes we find out what they are and sometimes we do not! Could it be a tree shake, or some profits being taken, or indeed some derivative activities taking place. Let's wait and see. John

johngtudor:
Agree wholeheartedly. I use Metastock and Supercharts and from these all the signs were that the price was toppy. MACD 25,40,25 crossed down on 24th the 5,35,5 macd (american guru Chris manning uses this as it responds quicker) crossed down on the 10th Nov And the stoch crossed down on the 18th so the signs for a correction were there but the 21 day RSI is still above 50 which is still a good sign, roll on 1200 hours as buyers now outnumber sellers. thank you for your advice. Seadog

Good buying volume at moment with total buys up to 2.1 m with sells at 1.6m. Price may need to rise this afternoon to keep profit-takers interested. Well done, buyers at 69p!

No visible reason for selling other than profit-taking plus perhaps, with respect to jgt and sd, chart followers. The warehouse is no reason as they state that they have satisfactory arrangements in place over Christmas. What's a warehouse in contrast to 50 retail stores?

A reading of the financials. Key figure is overheads, where ASOS have their largest advantage over the high street retailers (together with stock investment). Last year, second half 'admin expenses' were up just 7% over first half. Lets suppose the figure is 14%. Annual gross profit, up 80% as indicated. of 6.9M. Administrative expenses of 4.6M. Operating profit after Goodwill of 2.1M. Ignoring potential tax rebate, earnings of 3.1p per share. pe of 25. I reckon that is low by 1/3rd which implies a price of 115p. So the share is definitely a BUY. Seymour Pearce are bound to repeat their OUTPERFORM. So carry on stacking them higher, folk!

Eric

John, SD

Interesting that this is the fourth time in six months that the sp has reached the MA50 chart and it rebounded the previous 3 times. I always tend to look for a trading reason why the price should fall with a balance of buyers or vice versa. This seems to be typical in that the price was taken down quickly on early selling, presumably profit taking and closing of positions; there is much less reason for it to rise as quickly when the pattern of buying and selling is established and the difference between the two is not that significant, i.e. the MMs aren't caught short or long. Nothing sinister, but embarrassing if you have geared your holding through cfd's! I'm still a buyer and still looking for 1 before Xmas.

Festive cheer to all! Eric

hope you are right.Having topped up again at 69P i am ever hopeful the 1 will be reached soon

Hi folks

Here are the key points from the analyst presentation today

Monthly Sales: Fluctuated between 600k - 800k April to September vs 300 - $500k range in 2003. More importantly JUMPED TO 1 MILLION MONTHLY SALES IN OCTOBER

FOCUS ON SIGNING UP BRANDS: Miss Sixty will be kicking off properly in Q1 05, ASOS have bought 400k alone of stock. Negotiated a deal to sell stuff cheaper than Miss Sixty do in their own shops!! This is core to the strategy - brands are warming to the internet and Robertson is targeting them before anybody else and where possible signing them, exclusively if possible, to ASOS

ASOS is ranked No. 2 in Hitwise, with a 4.6% share of the market second only to Next

Massive step change in customers in October / November - 750,000 unique visitors in October. Currently 55-60k people visit every day. This is a step change from 500-600k range in Jan - September and has continued into November

At the moment ASOS are taking 2500 - 3000 plus orders per day
Average shopper is ordering over 2 items per order

Average basket is moving up. September - November saw a range of 32 - 36

6 key departments: Womenswear 68% of sales (55% acheived margin), Menswear 13% (53%), Jewellery 7% (65%), Hair & Beauty 4% (46%), Gifts 4% (48%), Acessories 4% (60%)

Reiterated that summer months are slow for retailers and the interim period only accounted for 36% of sales.

Amazon.com and gift vouchers have been put back until the new year as IT/logistics issues became too much.

Nick Robertson stated that they are UK focussed for the foreseeable future. At this time the management have their hands more than full with the UK. International sales through the affiliate schemes are still growing although the UK and Amazon is still going to happen.


Cheers

Baheid

baheid

An absolutely brilliant post! Thanks a million! Ties up pretty well with my figures in post 830. I quoted gross profit there but it implied a turnover of 8.5m in second half. So they did need to do 1M in October. But the volume is building up very well indeed. One is also really confident that they are coping. A good example is Miss sixty. they are already geared up for the launch in January and that will help to keep the momentum up in the New Year. Extremely significant that they can sell at a lower price than the Miss Sixty shops - why should an orgainisation build up their own shops if they can sell more effectively through ASOS. amazon.com and gift voucehrs can then also play their part. Its right too to concentrate on their home market rather than dilute themselves.

The SP is certainly not over-cooked. As I mentioned above, the fall today is solely the effect of opening profit-taking and subsequent buying volume has not been able to offset that. I certainly wouldn't be surprised if the trading chart tomorrow is not the inverse.

Eric

I searched for the analysists report but got nowhere, well done that man!!!

Lucky old willfagg - right on the ball!

Perhaps worth clarifying my point about 'inverse trading' tomorrow compared with today. There will be a lot of favourable press comment tomorrow based on the analsts presentation. They will pick up on the internet story with the build-up of sales for the Christmas season. They will pick up on Miss Sixty because it demonstrates how ASOS can beat the retail shops because of low overheads. And it will not just be the 'serious' press but the Mail, Express etc. who target these young ladies and who have featured ASOS in the past.

So there will be buyers around in the morning and the MMs may mark up the price as a precaution. The price will jump back into the 80s. This will bring back all those who want to take profits; anyway, if you were in at 10p, why stick around for the last 50% or so? But the price will stay above 80p and will move a bit either away depending on the preponderence of buyers or sellers. So what to do if you're a buyer? Get in at 8:01 but don't chase the price up as it should come back as there must still be sellers around who would have liked to sell today but didn't like the price. By the time the buy recommendations come in from the weeklies and Sunday's, the sellers should have gone away to spend their proceeds at ASOS, the buyers will predominate and the price will move elegantly into the nineties. You could say that the statistics will be good; the shape of the curve attractive! A round pound before Xmas; no doubt about it!

There it is in a nutshell. Really sexy!

Eric