profits warning. Mark Slater

3620 days ago

ASOS – Still a sell – target c£23

ASOS (ASC) got off lightly with its profits warning yesterday but as its PR and IR machine cranks up do not be tempted to bottom fish at £33 – this stock £70 not that long ago ) is heading lower still. £23 looks about right as an initial share price target.

Normally if a company says it will miss earnings forecasts by 20% its shares fall by 40%. That is a stockmarket rule of thumb, care of Mark Slater. ASOS suffered a fall of just 28%. But what next?

Firstly