Dec 02

IBall on ASOS-A Dot-com That Works ASOS PLC is a UK based online clothing store; they’re the largest purely on-line clothing store in the UK. A quick view of their web site finds a very user-friendly and eye-catching layout designed to attract the teenage and young adult target market; the company name is an acronym of As Seen on Screen, as much of their fashion is modeled on what UK celebrities are currently wearing. They service both the UK and the US, noting a flat $6 shipping rate to the US in a banner ad on the site and guaranteed shipment for Christmas if orders come in by December 7th.

However, it is better to be good than to look good, and the financials, if I can borrow from Fernando, look mavelous.

They nearly doubled their net income in FY 2009; going from 37 million pounds to 72 million pounds. They have no long term debt and a very healthy market to book ratio of 12.5.

The Price-to-earnings ratio of 34.5 is a bit high, but in a shopping universe that is increasingly going on-line, ASOS has a very good chance of doubling that net income again before leveling out into a mature company. If a normal market PE is in the high teens, ASOS will need to double its earnings per share before hitting maturity to be a good long-term buy, and the growth ASOS is showing should make it a good buy.

It would fit into the growth-stock bucket, but ASOS would be a good ad to the portfolio of either a UK or US investors; ASOS shares are traded over the counter in the US.

As an aside, and as an etailer myself, I find it remarkable that a website can be worth so much. The value is only in the customers, how many come back, how many new ones are coming in etc.  There will be little stock, or Real Estate.

Oct 16

John Mulligans Podcast click here to find it

John Mulligan speaks about the health of the world’s stock markets and investor’s appetite for equities across these markets since the on set of the economic downturn. Since the credit crisis, the markets have been starved by unscrupulous companies who have required vast amounts of capital to save them from bankruptcy.

He also speaks about how the onset of the economic crisis has starved the IPO markets. What he is debating is whether the health of these markets is improving. I agree with him in his assessment that the markets have slightly recovered. This improvement of the stock markets across the globe is obvious through the fact that activity has significantly picked up through 28 new listings raising over $400 billion in investment capital throughout the second quarter of 2009.

On a global level, the pace of initial public offerings have picked up substantially over the two quarters. Forty-nine successful IPOs have raised some $34 billion compared from just four IPOs raising barely $1 billion a year ago.

In the world market, there is a substantial increase in activity. It is absolutely vital that equity finance begin to flow again in order to fund the companies that power economic growth. We see signs that the markets are recovering.

So Got pick some nice Penny Shares that will ride the next wave!

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Sep 16

When Maynard Paton provides insight on stocks to look out for, people take notice and listen. In this case, Paton is discussing two potential buys that people need to jump on before the rest of the public has a chance to do that. What are these things?

The first of these two buys is Daejan, a commercial property operator. It is thought to be a good buy for a number of reasons, most of which have to do with the people who run it. One of the things that Paton likes to focus on is the leadership of a company. It is a good indicator of a company’s chance at future success because the people who make decisions need to be smart, experienced, and savvy in order to give the company a chance at prolonged success. For the Daejan, the company’s leadership is top notch.

Another thing that Paton likes to take a look at is the public perception of a company. In order to find value, a company needs not only good leadership and a solid business plan, but they need to be flying under the radar a little bit, too. As it stands, the company is one of the least known big companies in the world, and this is a positive for its value at this point in time.

What we see in Paton’s opinion is that he likes companies who provide both a necessary and specialized service. In this case, it’s an insurance company that works with small businesses of all types. The company is Abbey Protection, and they provide small business owners with insurance against unexpected legal expenses. Again, this company provides solid leadership backbone to guide it in difficult financial times. The real kicker here is the service that Abbey Protection offers, though. Paton is right on the ball in terms of analysis on this company, as it should be a good bet to grow in the near future.

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Sep 16

The Thrifty 30 – An entertaining and informative blog

 

Richard Beddard takes his experiment in the Thrifty 30  and makes investing fun and practical for the masses. Beddard has set out to pick a portfolio of cheap stocks that can be purchased in small amounts – in this case, 30 shares at a time. He clearly lays out his criteria for choosing the stocks, but just as clearly states that it is up to the participants to do their own research. “Cheap, safe companies” is more or less the gospel of Beddard’s Thrifty 30. He tends to stick with established companies as opposed to upstarts that – though cheap – tend to be less stable. He offers clear and concise reasoning for the companies he chooses to add to the Thrifty 30 list, keeping his explanations to near sound-bite length. His reasoning and thought processes are easy to understand, though some may think he’s playing it too safe.
I think Beddard’s approach to investing is refreshing. At a time when many are thinking the best approach in these difficult financial times is to hide any extra cash in the mattress, Beddard inspires people to peak from beneath the covers and look anew at the opportunities investing can offer. The Thrifty 30, for many, is like learning to walk again. Beddard is moving us along in our investment journey, showing us the baby steps along the way.
Beddard’s blog is informative without carrying the air of musty stock reports adorned with endless, mind-numbing charts, graphs and over-analysis. Although he does include the occasional graph, Beddard explains things rather concisely. This experiment in thrifty stock purchases actually makes for refreshing and inspiring blog reading.

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Jun 24

A Rich Guide to Penny Shares. 

As an outsider looking in , I believe i have a unique view of the penny share world.  I know so many people who live a breath them, and are always excited by the latest buzz in the shares market, that some of this is bound to rub off.

 

But I do not trade myself. So the ups and downs of shares, indices and commodities are of no direct interest.  I am not biased.

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