LSELondon South East
IIIInteractive Investor
DTMdiscussthemarket.com
ECR etadelete
20 Oct 2015
Re: Get digging.... would this be the next REM in the making.any more news?good luck all
ASC II Editor
20 Oct 2015
NEW ARTICLE: ASOS surges as buyers dive in "After a string of profit warnings last year and a shaky start to 2015, LSE:ASC:ASOS appears to have put its troubles behind it. Just one month after founder and boss Nick Robertson stepped down, the online fashion retailer has turned falling ..."[link]
Hey BuyBAO ...Nice to see you're still around! Finally things seem to be coming together here! What a wait haha.
SFR Ripley94
20 Oct 2015
steel will the closure of UK steel have any affect ?
PAR SalopTractor
20 Oct 2015
Patco - nothing m8
CNEL Bazil_Brush
20 Oct 2015
Re: Another Blue Day!!! Long way to go Alltold to reach the levels of 2012, but we're on our way Patience has favoured my holding here....B_B (Where's Dicky x 3, he's missing all the fun!!)
ASC oldjoe1
20 Oct 2015
ASC, BULLISH ARTICLES....... Asos shows signs of recovery as sales rise 18%[link] confident on outlook as profit edges higher[link] expects about 20% sales growth for new year[link]
ASC oldjoe1
20 Oct 2015
ASC, Broker UPGRADE....... ASC BROKER UPGRADE....and from one of the better Brokers..20 Oct 2015 ASOS Plc ASC Numis Buy 3,164.50 2,928.00 4,250.00 4,250.00 Upgrades
ASC oldjoe1
20 Oct 2015
ASC, FULL BROKER NOTE...... ASC As Seen On ScreenResults this morning (below) well received by the market, the stock looks to have plenty of upside as long as discretionary spending does not get hit by economic matters in the future.[link] Cantor: HOLD<b><i>Final results were broadly in line with our and market expectations. Pre-tax profits in the year to end of August rose by 1% to £47.5m vs. CFE Research £48.0m (Company consensus: £47.2m). Gross margins were reported to be up by 20bps to 49.9% (CFE Research -8bps) recovering strongly in the second half as a result of a strong full price sales mix in this period. Gross margins, however, declined by 230bps in Europe to counter adverse currency exchange movements. Costs were up by 21% impacted by higher payroll and warehousing charges offset by lower marketing. Net cash was much stronger than our forecast at £119.2m benefiting from working capital gains. The current year has started well and the company are guiding toward sales being up by 20%, gross margins being down by 50bps and operating margins being in line with the previous year at broadly 4.1%, which implies earnings growth of c.20%.Following this update, we are retaining our FY2016 pre-tax profit forecast of £58.0m (EPS: 53.7p). The stock, which has declined from a high of £42, has started to recover from September’s low of £25. The company is now of a meaningful size with sales forecast at over £1.3bn in FY2016, has relatively strong cashflow and a ‘state of the art’ logistics infrastructure. Earnings, however, have declined over the last two years and although they are set to improve in the current year, the improvement in momentum, we believe, is priced into the stock. The departure of Nick Robertson as Chief Executive, who was the ‘guiding light’ of the business, is an added concern. The stock remains highly valued at 54.5x our FY2016 fully diluted earnings forecasts. We are reinstating our recommendation as HOLD from Under Review and our TP at 3000p from Under Review.</b></i>
GKO r21442
20 Oct 2015
IC view on the sale The board of Greenko (GKO: 87p), the Indian developer, owner and operator of clean energy projects, has signed a sale agreement with the government of Singapore (GIC) for the disposal of all of the company's shares in Greenko Mauritius for a gross cash consideration of £162.8m. Net of transaction fees the board plans to make an initial capital return to shareholders of 98p a share within three months of completion of the transaction, and a further 2p a share by way of a members winding up of the company. The total payout is 100p, or £159m. Shareholders will be given the opportunity to vote on the transaction at an EGM on 9 November and a 50 per cent majority is required for the deal to proceed. Completion is then expected sometime in November.To recap, both GIC and Global Environment Emerging Markets Fund III LP hold shares in Greenko Mauritius which can be exchanged for ordinary shares in the company with effect from 1 July 2015. If converted this would lead to Greenko's existing ordinary shareholders being significantly diluted. I explained the implications of a dilutive share issue in early summer when the share price was 55p ('A slick investment', 25 June 2015). I last updated the investment case when the price was 80p and recommended holding onto the shares at the time (‘Four small caps with further to go’, 10 September 2015).Admittedly, Greenko’s shares have endured a roller coaster ride since I initiated coverage at 138p ('Buy signal flashing green', 18 March 2013). Having hit a high of 180p at the end of September 2014, the share price fell steadily thereafter and I subsequently downgraded my view to hold at 104p after it became apparent that the operational progress of the company was being undermined by its capital structure ('Small cap updates', 31 March 2015). In particular, the guaranteed minimum protective returns offered by Greenko to both GIC and Global Environment Emerging Markets Fund III LP when the company raised development funding, coupled with constraints on raising fresh capital, meant that the equity share of the two investment groups in Greenko was in effect spiralling upwards at the expense of other shareholders.A sensible compromise In my view, this looks like the best compromise that can be reached, albeit shareholders are being offered an exit from their investment at a much lower price than the company was being valued at 12 months ago. The flip side being that the operational progress made this year has been behind what had been predicted. Moreover, with Greenko’s shares trading on a bid-offer spread of 86/5p to 87p, I would expect the discount to the 100p proposed cash return to narrow once shareholders vote the sale through as I anticipate will happen. In effect, they have little choice because if they were to reject the proposals, the company’s share price would collapse and in turn this would enable both GIC and Global Environment Emerging Markets to immediately exchange their investments in Greenko Mauritius for an even larger share of the company’s equity.So although the investment has not worked out as I had planned, I would recommend voting for the disposal and continue to hold Greenko’s shares as I firmly expect the share price to rise to around 100p before the end of this year. Hold.
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