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!!

Really aggressive pricing by the MMs. Sellers brought back in, selling around 77.5p. and this has brought day's trading back to parity. Again shows how quickly the share will move when there is actually some good news.

Eric

Eric: Well how nice to be in Rye. We have spent many pleasant Sundays in your neck of the woods...but Car Parking can be a problem!

Re FD's; CD's...you are of course correct, the correct abbreviation is CFD but it is one of many Financial Derivatives around. The key thing to remember with CFD's is that you can increase your leverage many times over but at the same time the downside goes up as well. In the case of ASC, I am actually considering using a derivative, because I see it as a good one way bet.

Glad to read you had an early morning fix in ASC (as did I when the SP dipped this morning), as far as I am concerned it is not a problem to increase stakes in a successful investment, because you can reduce them at will, and that's one major advantage over the Institutions who have less flexibility. At the same time when the weighting approaches 50% of the portfolio it may be time to take a view. But at least you are running with the winner and maximizing gains!!


John

John

Just pursuing the idea of using a CFD. There is quite a good article on p55 of today's Shares. The lowest entry cost route, and perhaps the simplest, appears to be miniCFDs. The website ( www.miniCFDs.com ) seems straightforward. You need only a 10% deposit. Any preferences? companies like ifx (recommended by my brokers, Stocktrade) require a 10,000 entry point and are probably geared to the larger traders and probably have a narrower range of admissable shares, also 20% deposit as opposed to 10%. I see miniCFDs are part of finspreads which is now part of IFX Markets.

Nearing 60% so 50% must be OK! Two large sells have gone through of 200K and 250K, pegging the price back. Buying opportunity again but I have my daily quota!

Eric

Eric

I have used Finspreads MiniCFDs previously, don't really know if they are better or worse than anyone else. However, the amount of deposit depends on the gearing of the stock you are intending to trade. 10% guaranteed for all FTSE100, but may be more for non blue chips. A word of caution, I opened a position a while ago and also set a stop loss. I eventually closed the position and thought the Stop Loss would also be cancelled. This was not the case, the Stop Loss remained in force and acted as a 'Sell Order'. Fortunately I didn't have any funds in the account at the time, so didn't open a position I didn't want. So, just make sure if you do close a position, close any other instructions associated with the trade.

Regards

PTH

jgt, pth

Just following up the CFD issue. Spoke to miniCFDs only to find that they only trade FTSE 100 and 250. What are the options for ASC?

Interesting day for ASC with somewhat above average volume of 1.57m shares, somewhat distorted by the two sells totalling 450K. Not clear whether the price will settle around this level or continue to press ahead. Clearly a steady stream of buyers, but it depends what else needs to be shaken out of the woodwork. You can see from the volatility of the intra-day share price that it could well be attractive to day traders - couldn't get myself to sell though.

Eric

Grabbed some more at 74p

capa

Good morning Eric: Apologies for delay in response I have been adding some hardware to my PC setup and ran into some unexpected issues to resolve. Still all OK now. Re CFD's, I myself have not used mini's. I find spread betting OK for certain situations but you tend to get too large a spread. So CFD's are my instrument of choice if I need leverage. You need to go into all the details for your own circumstances but try Blue Index and Cantor (although I know that Cantor's need a minimum deposit of 25K) my choices. Both have good on-line packages that you add to your set up as required. They will also give you quotes on AIM stocks as well as FTSE Index constituents. Suggest you talk to them both on the telephone and discuss your needs. These are not recommendations...just pointers as to where to go.

As always have a really profitable day!! More later.


John

capa

That's a good grab at 74p: the offer price is already up to 77p. Must be quite likely that there will be a mark up on Monday with buyers in on probable weekend press comment. I'm going against a habit of a whole week and not topping up today, though - just can't convince myself that a weakest link exists in my portfolio.

Eric

Week-end report on ASC Challenge Portfolio

company________ EPIC price,p shares_ shares price_ value_ cap.(m) gain/
_____________________buy____ in issue______ 29-Oct 29-Oct________ loss

ASOS___________ ASC_ 56_____ 67.97__ 8900__ 74.50_ 6630.5 50.64__ 33.04
Civilian Content CCN 16.25__ 41.883_ 30700_ 21.50_ 6600.5 9.00___ 32.31
Yoomedia_______ YOO_ 22_____ 125.538 22700_ 27.00_ 6129.0 33.90__ 22.73
Petroceltic Int. PCI 15_____ 484.975 33300_ 17.25_ 5744.3 83.66__ 15.00
Sterling Energy SEY_ 17.25__ 822.712 29000_ 19.00_ 5510.0 156.32_ 10.14
Broker Network_ BNH_ 77.5___ 15.065_ 6450__ 80.00_ 5160.0 12.05__ 3.23
Marchpole Hold. MPH_ 33.75__ 120.455 14800_ 34.50_ 5106.0 41.56__ 2.22
Stanelco_______ SEO_ 4.5____ 78.225_ 111000 4.50__ 4995.0 3.52___ 0.00
CFA Capital Gp_ CFP_ 0.7____ 619____ 714000 0.62__ 4426.8 3.84___ -11.43
cybit holdings_ CYH_ 1.82___ 988.952 275000 1.57__ 4317.5 15.53__ -13.74
Petrel Resources PET 124.5__ 58.625_ 4000__ 104.50 4180.0 61.26__ -16.06

total_____________________________________________ 58799.6_______ 6.91
Smallcap index____________________________________ 55097.4_______ 0.18

Well, what do you know! ASC takes the lead, by a nose! A good week in which ASC has broken into new high ground, with the follow through from the figure of 85% sales growth in the first five months. Virtual competition above to guess the price at close of business on the 10th Nov. Prize is a mention in this column! CCN has kept in close touch after news of the film programme that they promulgate to complete the year. YOO has had further announcements - see the column as it is becoming clear that YOO is building a broad base to become a major force in the market (not necessarily in time for this competition!).

Interesting time too with the oils. Announcement that SEY is raising funds for a deal with the Mauretania Government: good for long-term growth but price may be held back by funding over-hang. PCI is awaiting results of drilling in Tunisia early-November which could be big for the share price - or a damp squib! Decision on PET's Iragi bids should be November after announcement by Oil Minister; several of us on column believe it to be down to final contract negotiations. If its a win, only one winner on this portfolio.

The others haven't been all quiet either. CYH have made a significant acquisition but the share price, as reported on the IC, is held back by their decision to stop taking revenue credit up-front; this means a one-time hit this year and may hold back deserved progress. pth took the initiative of writing to CEO of CFP (he is keen to win this you know - hush, hush) and got a most revealing and evidently sincere response - they are working 10-12 hour days and haven't had time for things like press releases; he apologises and will aim to do something about it; so keep a look out. Marchpole interims are 9th November and bb folk are licking their lips in anticipation. That's only BNH and SEO that I have nothing to say about, sorry about that!

Well, you know that I am unbalanced and irrational about ASC. Now up to 60% of my portfolio with 10% each in YOO, AZM, PET and CFP. With the benefit of hindsight we should have put 50K in ASC with 5K in each of the rest. Never mind, it is a virtual portfolio after all!

Eric

Good post Eric, many thanks for the update.

Regards

PTH

Eric: Thankyou for this eagerly awaited update. I must say you have made this a rivetting read. Sceptical followers of this BB with it's virtual portfolio may become believers when it is too late to get on board! Meanwhile for those of you with a money interest...good luck!! I do hope there is no weekend coverage of ASC and hence no mark up in it's SP on Monday, yes I am just greedy!!!!! Thanks again Eric and have a good weekend. John

Sorry John, having been a sceptic of ASC, but now converted, (by the excellent posts and posters on this board), I rather hope for news, news and more news, (all good of cousre). Good luck.

Regards

PTH

Eric
I can't help but think if you by anymore shares in ASC the board will think you're planning to mount a takeover bid. What is it again over 29% and you have to buy the rest? Sorry to scarper your plans ...but you're not having mine!!! Brilliant update as always. Really appreciate all the effort you put in for us every week....even if I am coming last! (hopefully not for much longer)

Sandra...as I recall you wanted ASOS but found it taken and went for PET instead! Never mind, all to play for but look after those finger nails! Like Eric I am also hugely overweight in ASOS and very happy to be so. Xmas will be nice and I think I will win all round, the investment grows and the 'girls' will be happy with the goods provided by ASOS. This is a true story of how it is possible to still be successful with the right Internet project and product.


ptholden: There is plenty of time for news on ASOS sales as we move towards XMas, lets have a few more weeks with the SP in the 70's...allowing me to move money around and top up...such a lovely feeling!!


John

Thanks folk for kind comments. Hey, is that work? I though I was just having fun with my hobby! If its work, perhaps I should try doing a bit more of it. Do I get paid for that as well? What are all these crocodile tears, Sandra? we all know you are an even money favourite (you might be the odds-on favourite if we had the pleasure of actually meeting you)!

Eric

Ahhhh..... I feel better already.
Have a lovely weekend gentlemen.

Forgive me but I have visited their website and could someone please tell me what barriers to entry face any other would be competitor ?

Looks like another lastminute.com to me ... what am I missing ?

Eric, Thanks for a super update, but with so many goodies i am spoilt for choice, sold a bunch of shell on thursday +30% I will top up on ASC next week maybe monday if the price is not too inflated, Many thanks

Dil- Last minute have never made a profit and have grown by taking over companies and increasing debt---therefore only for the brave. ASC have shown good growth on sales and marketing alone. They appeal to the kids with cash-or the would be kids as well! cheap very fashionable clothes etc. No barriers to competitors at all but they are first on the case and now well established---just remember NEXT (that's one I was too careful to buy and watched it rocket) ASC in my opinion have very much the same long term potential even if someone decides to enter as competition. DYOR this is only reasons for buying--but want to add lots more so need time before sp rockets!! enjoy the weekend everyone-this thread is almost as enjoyable as SEY!!

My daughters have pointed out to me today Handbag.com...a free supplement with today's Torygraph..has anyone else seen it! Will be interesting to see what Xmas marketing is coming from ASOS. It's good branding but ASOS have aimed for a much broader based market with their exposure in the Mail and Sun.

SEADOG: There may be better buying opportunities than Monday for ASOS. The markets will be a little unsettled this coming week due US election. So watch the charts!

Eric: Does the smallcap Index value you quote go back to the start of our game?

moneyplus: Thanks for answering Dil. This barrier to entry issue also applies to Pizza parlours...we had Pizza Express and them looked what happened. There is plenty of space and a good management team is spurred on by the competition just like NEXT.

Finally does anyone plan to attend the MoneyAM Xmas do by London Bridge...we could meet up and swop stories??


John