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!!

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!

Willfagg, I am sure all the readers on this board will second that! Good idea that one. Disappointed as I am, your comment still made me smile. Don't know why so many people have reacted so quickly to just one person's view. Don't they do their own research?

This is what Yahoo Finance has to say -

Shares in celebrity-focused internet retailer Asos (LSE: ASC.L - news) have risen 15 fold this year, but as a result the shares are now just too expensive says the Telegraph.

Asos may be lower-cost and more cash generative than most retailers but it can still misjudge the consumer mood like any clothing chain.

It remains an interesting play for those who like high-risk stocks but most should avoid until the shares have calmed down.

Any comments?

Yes, rohitjairaj, I unfortunately agree with them i am sorry to say. I am happy that everyone has done well, but the fundamentals don't stack up...

They probably will go higher but I can't justify taking the risk. I watch this everyday and curse the 40p i left it after buying at 7.75 and 8p!!