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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