ASOS: I said sell at £33, shares now £24 – target cut from £20 to £16, keep selling

Nine weeks ago after the profits warning from ASOS (ASC), to much abuse from Bulletin Board Morons who looked at price not value, I warned that the shares would fall further from £33 - HERE. They have. But the shares have further to slide and I am today cutting my target price from £20 - see HERE -  to £16 and here’s why.

The Bulletin Board Morons reckon that a share that was once £70 should surely be able to get back to close to that level. They say “it’s cheap relative to where it was.” They ignore the fact that it was grotesquely overpriced at £70 but now – on the basis of slashed earnings numbers – it is still rated as a glamour stock. Glamour stocks don’t issue profits warnings.

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