$ASC.L – ASOS – still going down

I see ASC (ASOS) is still declining in share price, with its shares down 3.7% so far today. On the 19th, Jeffries re-iterated its “buy” rating with a target price of 6200p. That target it looking
increasingly silly.

ASC has now dipped below its 200dma, and technically oversold. There seems to be a certain amount of “tussling” around this level, as if the bulls are fighting the bears to see which one dominates. If the 200dma becomes resistance rather than support, things should go from bad to worse.

Two things that do concern me:
1. Stockopedia is showing a momentum rank for ASC of 44. It’s also showing RS6m of -5%. This is exactly what I wouldn’t want to see if I was going for a momentum/growth stock on such lofty valuations 2. It shows up on Stockopedia’s Earnings Downgrade screen. Again, given the loftiness of the valuation, you need earnings to beat expectations, not disappoint.

I stick with my assessment that this is a dangerous share to be long on.

I have no position, but I’m aware of some people that have short positions, and are making a killing out of this share.

5228p

Prosperous investing to you all.

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About mcturra2000

Computer programmer living in Scotland.
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