Heard on the street article in last week's WSJ -- http://tinyurl.com/497hco3 -- pointed out that Asos and Yoox have very high valuations.
From the WSJ: "Online-fashion retailers have become as hot with investors as the latest looks to hit the runway. But with valuations reminiscent of the dot-com bubble, it wouldn't take much to throw a stiletto into investor expectations.
Take Yoox, which reported a 70% rise in 2010 operating profit Wednesday. Having more than doubled since its Milan float in late 2009, Yoox's shares are trading at 44 times forecast 2011 earnings. London-listed Asos is trading at 54 times, and its stock is up more than 300% in little more than a year. By contrast, traditional luxury retailer Burberry Group is trading at just 20 times."As a potential short selling candidate, both stocks are not showing high demand to short. Just over 1 million shares of Asos's 42 million float are currently being borrowed and shorted. Just over 300,000 shares of Yoox's 32 million float are borrowed. The cost-to-borrow for both stocks is relatively low.