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!!

SDADOG

Excellent post! Splendid way to start life outside the FTSE350 to invest in ASOS. Just reviewing my performance this year which is somewhat better than breakeven. Have lost on PET (presumably), YOO, EPO and one or two others. All this more than wiped out by ASC gains. The charts are still very positive,my Kahn reading says!. Now, if I had put all my eggs in one basket!

Re the gambling or investing point. My point is that it is more a question of degree rather than kind. Your CFD example is a good one. If I buy ASC shares at 80p and they rise to 100p I gain 25%. If I put the same money into a CFD with 3:1 gearing than I gain 75%. I am EMPLOYING my money more efficiently. I am speculating/gambling (there is downside risk) in each case, but based on skills honed as an investor in each case. Perhaps the language doesn't natter too much.

Eric

ASOS CHALLENGE PORTFOLIO

Everything gets into better perdpective from abroad. Marvellous place, Vancouver! Easier to bear the disappointments of the vagaries of the stockmarket!

company_________ EPC pp(p) issue-m shares price val. cap-m gain% gain wk

Broker Network H BNH 77.5_ 15.065_ 6450__ 126.5 8159 19.1_ 63.2_ 6.8
ASOS____________ ASC 56___ 67.97__ 8900__ 84.5_ 7521 57.4_ 50.9_ 1.2
Stanelco________ SEO 4.5__ 782.225 111000 6.0__ 6660 46.9_ 33.3_ 9.1
Civilian Comtent CCN 16.25 41.883_ 30700_ 16___ 4912 6.7__ -1.5_ 10.3
Sterling Energy_ SEY 17.25 822.712 29000_ 15.75 4568 129.6 -8.7_ 3.3
Yoomedia________ YOO 22___ 163.313 22700_ 19.75 4483 32.3_ -10.2 -4.8
Marchpole Hold._ MPH 33.75 120.455 14800_ 28___ 4144 33.7_ -17.0 -1.8
cybit holdings__ CYH 1.82_ 988.952 275000 1.4__ 3850 13.8_ -23.1 0.0
CFA Capital Gp__ CFP 0.7__ 619____ 714000 0.45_ 3213 2.8__ -35.7 -18.2
Petroceltic Int_ PCI 15___ 484.975 33300_ 8.75_ 2914 42.4_ -41.7 -12.5
Petrel Resources PET 124.5 58.625_ 4000__ 42.5_ 1700 24.9_ -65.9 -57.5

total__________________________________________ 52123_____ -5.2

Reuters posted a report yesterday that said that the two Iraqi contracts had been awarded to Turkish and Canadian countries. All is confusion as denials from the Iraqi Oil Ministry and the Canadian Company has denied a bid. The market has assumed that PET have not won a contract. The price ahs fallen back to the trend line. Its a wait and see situation.

Added to the general situation with Oil shares and the lack of positive drilling news from PCI and SEY, this makes the portfolio look distressed (not only the investors!)

Is there good news elsewhere? BNH are holding on to most of their gains. ASC are forming a nice stable base before the next advance. SEO are brushing aside the negative situation in the law courts. CCN are recovering a bit of poise after several weeks of sliding. MPH are seen as potential acquirers of Feraud.

Of the others YOO have their EGM on Monday and a bulletin from Evolution is likely to painbt a very rosy picture. This may include significant news of a contract with ITV. Now much more of a heavyweight but they could enter a long bull phase if their leadership of the digital TV marketplace is confirmed. Worth watching.

That just leaves CYH, still in the doldrums after their results, and CFP suffering from no news! OK, portfolio performance is not good overall. But there could be some winners here for 2005. I won't give my own views this week, but why not have some suggestions from this list. The other question I have is - can you spot the ASOS of next year - a share able to double four times over? I suspect it may need to be less than 10m pound cap.

I an getting stuck into Kahn and will be trying to look at the ASC charts to learn some lessons. Quite a frustrating year as I have not enjoyed the net gain I should have done from the success of ASOS. Which is why I feel technical analysis needs to supplement my fundamentals approach.

Eric:
Thanks for the posts. Vancouver, English Bay is indeed a beautiful place, but try and get down to the Chinese quarter, the restraunts and chinese foods are excellent. The shopping is good too.
Don't forget to go walkabout on the return flight and avoid DVT !!!. SD

Eric:
Ref your penultimate para: I will nominate Caledon Resources (CDN). It has a great portfolio of gold properties in China and has made a strategic investment in Afcan, a TSX company. Afcan plans to bring a gold operation on stream in 2006.
I particularly like the amount of surface oxide ore CDN is finding. Anyone in the industry knows that that type of ore can be equivalent to a licence to print money at todays gold price. Downside risk is a significant strengthening of the dollar, having a knock-on effect on the gold price. My short term target is 10p.

iturama

The fascinating thing about iturama is the similarity of the chrat to that of PET. Another case of hype giving way to realism but a still very positve scenario going forward. Will give it a good working over! Thanks!

Eric

johngtudor

In addition to an update on ASC, need a Technical Analyst view on PET, TEP and CDN. Have you the time? Planning to post some questions re ASC based on Kahn - great stuff! I am redefining my position for 2005 as a Fundamentalist in stock selection and a Technical Analyst in terms of timing! Sounds good, anyway!

Eric

interesting article from the independent today. Take a look at the last line "listen out for takeover rumours".........

Eric, hope all is well and the mrs is feeling better.

Small Talk: Fashion retailer Asos beats bigger rivals in style
WH Ireland shines - Uruguay gains - Avanti advance - Anker debut - Toad mulls options
By Stephen Foley

20 December 2004

Small has been beautiful this year. As confidence in the stock market has been gradually rebuilt after the savaging of the bear market of the early part of the decade. More flotations, more trading by private investors and more corporate activity have propelled share prices higher across the board. But the micro-caps - the emerging companies onAIM, the junior market, or, on the full list, too small to make it on to the FTSE Small-Cap index - have outperformed their larger peers by a considerable margin. The FTSE AIM index is up 18 per cent this year and the FTSE Fledgling, which measures the bottom couple of per cent of the main market, is up 18 per cent, compared with a 7 per cent gain in the FTSE All-Share.

In what is likely to be a record month for internet shopping, it seems appropriate to crown Asos as best performing share of the year, with a gain of 1,400 per cent. The online retailer - floated in October 2001 under the longer name of AsSeenonScreen, and chaired by Lord Alli, the founder of Planet 24, the television producer - sells "celebrity fashions", the latest clothes and accessories to have been spotted on the rich and famous.

Whether it be the V-neck jersey dress in the style of Sarah Jessica Parker, Tinkerbell mismatch earrings in the style of Paris Hilton or, a current big seller, the fur/suede mix casual boot in the style of Kate Moss, no sooner has an item appeared on the pages of Heat magazine, then it could be available from the Asos website. More than 420,000 people are registered users of the site, sales in the six months to September were up 72 per cent, and the business is in the black. Next year, listen out for takeover rumours.

Eric:
A speedy recovery for your wife, she is in the best hands, Canadian hospitals are first class. Safe journey home.

Eric, take care and I endorse SEADOG's last commnets. Canadian medical facilities are really good.

As for Kahn does it talk about share liquidity (?)as I think you will find that the technical rules tend to work better on higher volume shares. Having said that I will run through your request later and post before you are up in Vancouver! The cricket has just turned England's way after a finely balanced session! Meanwhile I am still suffering from the PET drama's of Friday when my Broker did not honour the SL!! Be warned, meanwhile I have selected this quote for you Eric:

"As everyone who has ever played the 'Great Game' knows, golf is life. So is investing. The great challenge in golf is not how to hit the ball or how to line up a putt or come out of a sand trap. (re investment: be able to read a report and accounts; read macro). The great challenge is to control the golfer yourself. Its the same in investing: Know your capabilities and resources and play within them." (Eric my personal investment gospel).

I do like your new approach Eric and believe it will lead to better overall returns next year. Remember to keep your trading diary and you will soon see the improvement.

Finally, I do think ASOS will be a takeover target next year and do not think there is currently a premium in the price to reflect this possibility.

John

John

Eric: Re my interpretation of the ASOS Chart:

SP currently just below the median of wonderful uptrend. RSI/MACD remain in consolidation pattern. Try looking at Bar Chart rather than line as it demonstrates some great buying opportunities over last few weeks!

Re my interpretation of PET:

SELL.

Re my interpretation of TEP:

Assuming you are already a holder...take advantage of this bounce back and SELL.

Re my interpretation of CDN:

I note that on Friday it hit a 6.2p intra-day peak, which is probably the resistance channel for the time being. All indicators are starting to turn up, but always difficult to make any determination on these penny stocks. If I was a holder, then I would Hold, if I was a potential Buyer I would stand aside and see what happens over the nest few sessions.

Having made the above comments there is of course the fundamentals to consider plus the Xmas/New Year trading pattern, which is a mystery to behold! Best choice for me if I was looking to place some money on the table would be ASOS...no question on this reading of the charts. So take the painful hits on the losers and add to the winners at the right time.

Hope this helps. John

Eric:
I agree with johngtudor on all his interpretations, With CDN, this SP has been trading sideways since May between 4.1 and 6.5 approx with the odd spike to 7.0. My indicators have turned up but my RSI has not cleared 50 on the weekly chart, nor has the MACD crossed 0 but indicates we may see a short rally. The Stochastic indicates that we may have seen the bottom for a while. Personaly I would like to see the SP clear 7 and hold above it before taking a position.
In addition to johngtudors advice to look at bar charts also look at candlesticks, and weekly charts as well as daily charts.
Hope your wife is recovering well.
Have a good lunch !!! SD

Eric/SEADOG: I did not mention Candles to Eric, because I wanted him to get comfortable with Bar Charts first. However if he is 'gung ho' on Candles which has it's own language and MUST be used with some Western Indicators as well...may I suggest an excellent slim volume by Steve Nison, entitled: 'The Candlestick Course'. It is obviously written around a course and includes lots of questions at the end of each chapter to make sure you know what you think you know! I found the answers at the back of the book particularly useful...they told me even more! I bought it on Amazon and it virtually arrived the next day, primarily to add to his other volumes...but it is outstanding value for money and a MUST HAVE for anyone serious about applying this black art to trading. John

Morning all
I'm away today, Happy Christmas everyone,and a prosperous ASOS new year.

Morning Seadog,

Hope you did all your Christmas shopping through ASOS.. Have a good Christmas.

Chris

anyone see the happy comment in telegraph today"ASOS a stock to be avoided " They must be the only one on the planet to post a negative comment. It would appear investors agree because as soon as the price dropped to 80p the buying started up....hope i am right cos after PET et al from this week xmaS aint looking too happy!

Willfagg
Did they give any reason for their comments?

Probably written by a deramping spreadbetter who has put a big shorting bet on it. It's only one person's view anyway. Perhaps he didn't do much research. So maddening though, when we all know it's getting bigger and better. I'm certainly not selling anyway. This week's news is next week's fish and chip paper - or turkey wrapping. Wishing a great Christmas and prosperous (Asos) new year to everyone.

has anyone know the date of xmas update?

its frustrating to see the impact this one comment has made on the share price.I know where i would like to stick his newspaper, and believe me i would make it fit!