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At 100 times' earnings the valuation of Asos' shares requires perfect execution, not slowing sales growth and higher than expected costs. Yet that is exactly what investors are getting at the moment. Its investments in distribution capacity and new IT systems are now expected to cost 68m pounds, and not the 55m pounds previously expected. In parallel, advertising costs doubled over the last reporting period, to 40.9m pounds. As for sales, in the first two months of the year they slowed to a 26 per cent pace, from 39 per cent in the year ago period and in comparison to the 33 per cent which analysts had plugged into their spreadsheets. Hence, the forecast for profits in the year ahead came down. The company is a UK success story but it's hard to get worked up about them at these levels. Hence, the stock is still a sell, writes The Daily Telegraph's Questor.4 weeks ago
Q3 revenue increases nine per cent; Supportive market conditions, strong December; Expects to meet full-year revenue targets4 weeks ago
Those who have followed me for some years will know I am a fan of seasonality and as I have explained in previous updates, financial markets do not go up or down evenly throughout the year in a nice orderly straight line; that would be far too easy.
If we invested $10,000 in the Dow Jones on 1st November and and then taken our money out on April 30st from 1950 to date we would now have over $950,000. We would have been out of the market May until end of October each year missing a few crashes in the process.
The USD/CHF pair fell during the session on Friday, but did so in a relatively tame manner, leading me to believe there are still opportunities for short-selling.
After all, we have seen for strong selloffs as far as daily candles are concerned, and then have finally see the market settle down for the Friday session.
Cloud computing services provider Nasstar (NASA) has been transformed by its acquisition of rival e-know.net. The integration of the operations is already far advanced and the business should be profitable this year.
e-know.net was established by David Redwood in 2000 and it was much larger than Nasstar, which paid £13m in cash and shares for the company in January and raised £10.5m from a placing at 5p a share.
Shares in Abcam (ABC), the provider of antibodies for the life sciences research and testing sector, have fallen by more than a quarter in recent weeks after a profit warning at the beginning of last month, with some investors clearly now having doubts about the long term future for the company. But new research might indicate things aren't as bad as some doomsayers believe.
Independent antibody search engine CiteAb has released new data today that suggests that this is a temporary dip for Abcam, with a brighter future ahead.
There’s an old Forex joke that goes like this: what is the most reliable Fibonacci Retracement level? Fifty percent and it is not even a Fibonacci number! Like all the best jokes, it is funny because it contains some truth. It is true that 50% is not a Fibonacci number, so we can leave Fibonacci out of this.
However, it is certainly true that when a retracement reaches half of its original move, this is when traders looking to enter on a pull-back should start to sit up and take notice.
Daily global markets overview for the 17th April 2014 by Accendo Markets. Also the overnight activity and what can be expected in the markets today. Information straight from the traders’ desks. Insights on commodities, equities, stocks and forex currencies.