I see on The Motley Fool that ASC has announced their results with “another year of surging sales and profits, in line with
market expectations”. From the article:”The shares of Asos (LSE: ASC) dropped 5% to 5,144p this morning after Britain’s most celebrated online retailing success story reported annual results in line with analysts’ growth expectations. The company — which once stood for As Seen on Screen — delivered 40% growth in retail sales to £753m, with pre-tax profits up 37% to £55m.”
Shares are trading on a PE of 101, apparently, which would explain the price drop on good news.
But wait! There’s more.
After hours, the company issued an RNS for a proposed placing. http://is.gd/Tb8sMv It appears that directors own around 7.7m shares, and want to sell 1.04m of them via a placing to institutions. The placing represents about 2.3% of the company’s issued share capital.
At a PE of 101, who could blame them?
If I had to hazard a guess, I’d say that shorters are going to have a field day over this. It will be interesting to see what tomorrow brings.
Edit: I see that today Jefferies and Canaccord have reiterated their buy targets at 6200p. I fear that they are going to look awfully silly in retrospect.