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I am anxious to add some Ftse 250 Share in my mostly Ftse 100 stocks, but I wonder where to start. So I decided to ask Chatgpt.
artificial intelligence (ai) is going to run our lives soon, they have told me. So why not let my portfolio run today?
Actually, there are reasons. Chatgpt's first choice was Stadium-manufacturer Game workshop. He left FTSE 250 on December 5, and now resides at Ftse 100. Oh, well. Even robots are not perfect.
Then I asked Chatgpt to give him another chance. I should have bothered my chum from ai because it roamed the fashion retailer online Asos (LSE: ASC). That was a brave decision!
As a brave I mean Mad. Asos? Actually? Of all the actions in the FTSE 250, I did not expect that.
If you own the future, it will be volatile.
Asos is a high -risk play
Asos could be the best knife that falls. The fashion retail hope turned into a fashion victim. And would I buy it in a heartbeat? I just know how to have no heart. Still.
The price of Asos shares has dropped 88% in the last five years. Cercado de 385P, has been reduced to 2009 levels.
This is a perfect storm of a stock, hammered for everything, from the crisis of cost of living to the hard competition, from the fast fashion rival of Chinese property, which forced him to download stock batteries not sold with a discount.
Throughout 2023, losses reached £ 296.7m. That increased to £ 379.3 million in 2024, while group income fell 16% to £ 2.9 billion. The CEO José Antonio Ramos Calamonte still claimed to have reached its key priorities by reducing inventories and “Ebitda generation positive positive and free cash flow”.
Sales also increased and Asos still has 20 million customers, he added. But forget Calamonte. He is just the boss. What does ai think?
Chatgpt admires the group “Strong online presence” While he praises his “Robust electronic commerce platform that attracts a global client base”. That line could have been written by a computer. Oh, it was.
As was a part about how the International Expansion Plans of Asos could “Diversify the sources of income beyond the United Kingdom”. Where is this thing? And why didn't the £ 110 million compliance center mention in Lichfield?
The worst can be finished
In his defense, Asos actions have stopped falling. In fact, they actually rose 2.62% in the last year. Is this the long -awaited recovery?
The actions obtained a small impulse on February 2 when two credit insurers restored the coverage of their clothing suppliers, retired in 2023 due to concerns about the profits. This suggests that Asos has greater financial stability.
Asos has also advanced in addressing its inventory challenges. The stock without selling is reduced by half and transmitted to a more agile model of 'test and reaction'. This should help you quickly respond to new trends, boost full -price sales and increase margins.
Sell their 75% participation in the TOPHOP and Topman The brands for £ 135 million will increase liquidity and allow management to concentrate on the main business. So, maybe Chatgpt hasn't gone crazy.
After his terrible race, Asos is back in my radar. But with consumers still tied for cash and sticky inflation, there is no way to buy it today.
I am angry enough to request tips on actions from a computer. It is not angry enough to act on them.
(Tagstotranslate) ftse 250