Hi All, 

Just creating a separate thread for Asos (LON:ASC) as i know its a widely held share. 

Asos (LON:ASC) have announced their ESG 2030 goals today.  Could this be a catalyst to getting more institutional money onboard? personally not a great ESG fan (window dressing), however this is the direction of travel within the wider market and should allay some fears around the environmental impact of fast fashion.   

The share price has been very weak lately, dropping from the summer high of £59. Does anyone have any thoughts on why? main reason i can see is the rise of Shein who are dominating the online rag trade a the moment with cheap Chinese clobber. I think Asos (LON:ASC) is still well placed given their mix of brands and strong customer service. Is now a time to buy why the share price is subdued? thoughts welcome 

Paul's take from his portfolio update back in May below: 

Bull -

  • Strong results, yet sector has de-rated recently, hence attractive entry price now, in my view
  • Stockopedia is showing forward PER 30.7 - traditionally Asos has traded on much higher PER, as do overseas comparative companies - hence upside potential
  • Strong, and continuing organic growth, plus acquired brands (e.g. Topshop)
  • Large, established, dominant online fashion website for 20-somethings

Bear -

  • Profit margin has been weak historically, but now improving
  • Increased competition
  • Online sales tax threat

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