Monday 12 May 2014

Morning Mumble Par Deux: Superdive because of China or the realities?

For those following the ASOS (ASC), Super[dive]group (SGP) and Boohoo sagas, should be well aware Supergroup has been a blatant short. Supergroup's Interim Management Statement was a miss...a clear miss, but whom is out of the money? Both down as there no doubt in part as a result of the over expectations that were priced wrongly priced in, including some silly targets on ASC and SGP.

Certain analysts need a reality check, obviously these price targets will be 'under review' in light of the Chinese Premier President Xi Jinping’s, words over the weekend. The Chinese position is not unexpected, the main indicator was the reaction of iron ore near 6 weeks ago, giving a signal to what is coming. The trade figures, gave some support to iron ore, but the consensus is right that the price is set for a drop. 

The Chinese Government may have to change track again, surely a few more railways to 'nowhere' will assist this...More importantly the Chinese expansion and realities of lower expectations are setting in…

Over to the Australian Dollar to weaken further...going out to £1 Vs. AU$2 is surely more valid in light of the change in the global environment. Considering: Get used to slower growth, Xi Jinping says amid weakening China trade figures (South China Morning Post Article)

Perhaps D will publish his thoughts on WANDisco as well, they were very valid, but would have been costly until the trend changed, which was confirmed around 1150/1100. All the same a nice sport…

Atb Fraser

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