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

If you're wondering why I didn't mention PGI on Friday, apologies - well truth is the last two stocks I got into (PSG, FAO) I did start a thread for them before I bought, but there were no responses, so I kind of thought maybe I'd breached protocol (being only a puppy at this game) so I was reluctant to do it a third time. Still plenty of fun to come in PGI I reckon. I was only alerted to it myself after it rose from 18p to 41.50 where I bought with scant research - moreorless hunch and a belief in the tipster (thoroughly bad way to invest I know). Never expected it to take off so soon. Hope there will be dips a plenty to add for me and you.

SD

SD

Accept that! Enjoy your bone. Had a look - quite a juicy one but most of the action has probably occurred. This is a good type of situation to pick up, though, where company has been under-performing in a traditional role but then gets into action which is complementary in a financial way. Worth a good 'ROFL' which you pups like!

By the way, have resolved to do some more topping up on ASC as CFD marging becomes available. Cap. down to 45M! I reckon that is projected pe of 15 in year commencing April. pe of 30 later this year (dropping to 15 following year) implies price of 125p. Anyway, thats my target. double-bagger and 8-bagger via CFDs. Yeah! I'll have a bit more of that!

Eric

Eric

Erci

Another one I did try to get you all excited about on the BFC board before it took off was close relation DOO at 160ish mid Jan - has now risen from 180 to 420 (!) over last 10 days. Again a very desultory response apart from andy and hlyeo98 who actually had the cojones to start a new thread last week - no one else.

Sorry to persist with the point, but I do want you all to know I do give where I can as well as take from this site. What I receive from you all is far more valubale than holding back on what I know.

Back to business - I agree with you on ASC, hoping it stays where is is for a few more days whilst I bring up reinforcements from the vault.

SD

No problem, sd, you're a good fellow. Even share your bones whilst there is still some juicy morsels on them. Mind, wouldn't leave you alone with the joint on the table! Good thing about share tips is that you share the good ones with your pals, they buy too, the sp goes up and you make more money! Like a smile - give it away and it multiplies. Same probably applies to woofs.
lol!

Eric

Winalot Of Other Friends (WOOF!)

SD

at time of this post no trade has been done since 11.54 looks like selling is getting lighter only 300000 shares traded on a downday looks like bottom will soon be reached.cheers woodie

I spoke to a "professional" investor last year and mentioned ASC.His response was "made a lot of money on them but they're old hat,now."Is this the attitude out there?Don't you think that the price rise was too good to be true....with not much cash to qualify such a valuation.Also,hard to pick a lower resistance price to buy in at.Does this become a stock that just reacts to good news?By the way,Stockdog,I am one of your fans...you are a cool hound!!!!

Ethel - ASC is old hat in terms of a 10 fold rise over 12 months, but has interesting prospects of doubling in value this year and continuing to increase over the next 2 to 3 years to maybe 4 times presnet value IMHO. And then there will be dividends one day quite soon.

In an uncertain world where the FTSE may reach the peak of its bear reversal any day now and then plunge downwards again, the macro level momentum of ASC's ratings amongst internet retailers in a world where we must be moving more and more towards that means of shopping away from the high street and ASC's evidently good management with tangible, upwardly mobile results, makes this a very comfortably fitting hat for me.

Am watching intently when to top up, but would like to see the consolidation a the 60p level really settle. Given 1p or 2p at this level does not make any real difference to the likely gain over the next year, I am happy to miss the very bottom and see a little determined tick up as a buy signal. Today's drift down to below 60p bid is unsettling my hope that we had reached bottom. I will wait and probably see what week ending price settles at.

A pre-opening RNS announcing acquisition of the new warehouse giving you 5 minutes in the morning to buy at the day before's closing offer price would also be a way to view it. Or waiting for the results - I expect a build up of price prior to them and a fall back after them on the resutls alone. If they also announce good trading and/or warehouse news simultaneously that could be the buy signal.

However, I can see no harm whatsoever in buying at today's subdued price if you intend to hold for up to a year.

DYOR, walk your own dog

SD

O.K...hint taken,will try to walk my dog more.Re the warehouse,which I presumes will be rented,they talk about first or second quarter till they have news on that.Then comes the horrible idea that their warehousing operations run into difficulties,which happened to many cos last year.How are they financing this expansion...new offering?I would like to wait till the sp drops much lower before getting in,although at the moment the business model etc.look great.Just hope they can handle the expansion that they are hoping for.More people will use the internet for shopping,especially as our towns and cities get more violent even though our every move is watched.Walking the dog used to be such fun.Thanks for your info.Ethel

sd: shouldn't that be WYOD! lol!

ethel: Your getting a little worried and trying to imagine downsides. Believe me, opening a new warehouse will be child's play after coping brilliantly with the Christmas peak for four different warehouses! This management has achieved everything they said they would in the last two years. As for cash they had 1.26mill at the bank at end September and that will have grown significantly by now. There are two reasons why the sp is languishing around 60p: first is people like your "professional investor" who have moved on; second is that it is known that the share has been shorted (I assume by evil knievel to get his own back when he failed in his efforts last year). The first of these will be put right with positive news from the company as investors return; the second of these will be put right with positive news from the company as short positions are closed.

What is the basis of confidence in sd's double figure this year with which I agree (he's actually quite an intelligent chap like many of his canine friends!). (a) Hitwise figures above which indicate that trading may be up to double that last year; (b) The positive effect in reducing costs of the new warehouse; (c) the initiatives waiting in the wings such as own label, deals with Amazon, etc to use their portals; Miss Sixty; the continued migration to the internet for fashion; the relatively fixed level of overheads. Can produce the numbers if you like but there is no way, IMO, that ASC will close the year at less than 120p. Its good to have a banker sitting away in your portfolio which you don't need to worry about - unless it is in your nature (I don't mean to be unkind) to worry!

Eric

Hi ethel, hope you're not a stalker. I have had shares in ASC since last year. IMO there are only two runners in this field, NXT and ASC. Apart from actual trading amounts, both seem to be experiencing similar trading pattern. ASC has brought more to their web site since my initial purchase and hopefully, the new warehousing will give them the punch to offer more online with confidence that they can deliver extra. I believe that the younger age group (teens to 30's) go for ASOS for trend and fashion whereas the smartset and born again teenagers go to NEXT (less exposure at the midriff!!)for office clothes, holiday and partytime. So I believe each has some niche and have good mileage ahead.

deancroft: helpful comment; seems a good insider view? Good comarison with NXT. The problem with NXT is that they have two minds as tow hether their internet activity is taking away from their retail shops. Another reason for buying ASC. Eric

Hi Eric. Big problem with NEXT shops is range. Different high street locations stock different ranges (size and style)according to local demand. A NEXT stock clearance warehouse at Castleford (Yorks) has lots of end of ranges simply because they cannot sell on the High Street. The warehouse has lots of size 8-10 whereas the lady in the street needs average size 14 to 16. The small Lincoln branch stocks a good range of petite, 30 miles away the larger Scunthorpe branch doesn't. On the website you can order anything so, yes, the stores will suffer but only because of local store management, IMO.

Helpful deancroft. Do keep posting as it is really helpful to have the inside view. What do you think of ASC's deal with Miss Sixty (evidently priced lower than Miss Sixty shops) and movement to own brand? Do you see them making progress with the boy friends? How about the suggestion of adding DTV which could appeal to a different clientele?

Eric

Eric, Miss Sixty range is available locally to us in Binns (House of Fraser I think). The jeans range for the ladies is very desireable 60 - 100 range so selling cheaper on the web is a bonus. ASOS own brand will be limited IMO as the age range of purchasers are very brand conscious. NEXT have it different because their predominant brand is NEXT brand. Progress on the male front is awkward. In the age range we are talking about for ASC, offering of sizes is not exactly in tune with the market. The girls are more size 6-10 but the boys are (or want to be)"beefcake" and I'm told the sizes offered for male clothes don't really match up. I know one slim 20 year old who buys sizes much bigger just to look more impressive to the girls. If you have a Yates Bar or Chicago pub, check out the clientele. I presume by DTV you mean digital telly. Don't know what to say on that one, haven't got one myself, don't have time to watch it. I think that those who want to buy clothes from ASC are less likely to be sat in front of a TV, more likely to be in front of a computer at work or home but I guess it is still comes down to getting as many audiences as possible.

There you have it - the Eric and Dean show. Very informative and erudite as always - thank you. ASC is definitely a buy - timing probably a metter of personal idiosyncracy.

Always good to buy on a FTSE down day.

SWALKIES - work it out and let me know - a prize(?) for the best answer.

SD

For those with an interest in these matters ASC closed this evening on the 200 day m.a. This is the markets standard long term moving average...if one was LONG one would not want it to close for 2 days below this level. However if one was SHORT you would be counting on it to bring home the gravy. John

And if one was waiting in the wings, you would be waiting for it to drop to an even better buying position! Eric

This could produce quite a bit of technical selling over the next couple of days, I guess.

Next support level is 45p ish and that is not too strong.

We shall see what appetite the MMs have to take on more stock at this stage.

SD

SO,are they renting or buying?Will they close down the existing warehouses.If everything is under one roof stock control etc has to be tighter.More vulnerable in the event of a fire,for ex.If they retain other distribution points the logistics get harder.Their success depends upon getting the products distributed efficiently,thereby improving margins.This is going to be the test.Hope they make it.Deancroft,I don't know what a stalker is in stock market terminology....it sounds horrible.Is it a person who follows a stock around and tries to get inside it and then gets caught and has to go to court??That's NOT me.Ethel