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The results alone will take this to 400p. Patience :-)
"THG PLC ("THG or the "Group") announces that Matthew Moulding, CEO, in furtherance of good corporate governance, has confirmed his intention to cancel his Special Share rights. This cancellation will facilitate the Group's application to step-up to the Premium segment of the Main Market of the London Stock Exchange in 2022"
He’s putting everything in place to drive this Company to new highs, the best Corporate structure & a listing in the FTSE 100.
Looking forward to next week !!!! Great LTH. IMO these opportunities to buy at these prices don't come along often. Good luck all investors.
It needs a lot more than a new chairman.
The fundamentals are horrid.
ROC -18%
ROE -47%
Forward P/E 190
EPS -66p
Im not surprised people are shorting this. And yes, the revenue grows. But at what cost and where do the profits go? Negative EPS is never good news.
This will take years and a deep cultural shift to mend.
And a US listing won't favour this one either. SEC terrirotries have the tightest regulations on this planet. US markets don't like loss making, mature businesses either. Rest assured.
Shame. The potential is there but there is no evidence it will be realized in the near future.
I'd remain cautious.
Absolutely agree with you both- and L’Oréal has had great trading update today so that bodes well for thg beauty
I m heavily invested at 330 average sp but this company is doing my head in/ it seems there is no support at any level and so volatile
I hope for a very good trading update on Tuesday with info on divisional margins and independent chair update
Thanks for that sbb, very insightful…..
Started accumulating Monday of this week, the revenues are high for thg just the net profit I think is at 2.1 % ?
Seems like Everything in America is valued much much higher ;)
I think its next to 'certain' as it can be that a new Chairmen will be announced imminently, could be timed to coincide with results on Tuesday as a double whammy of good news. If so the market will love. On Mondays RNS it jumped from 2.89 to 3.50, the II's are just accumulating and everyone awaiting the news on number of fronts including some clarification on Ingenuity
I think that’s the issue- it’s volatility is too wild. I m pretty invested here and expecting a very good q3 update but it’s going to be tough for this share to improve unless there is revenue and profit transparency and an independent chair announced at the same time
Seems like a relatively small number of trades today have pushed this lower 1.77m ish
Bailed out yesterday morning whilst I was still in profit. I still feel there’s a potential decent return from these levels but Its to volatile for my tastes.GL guys.
MikeyB55
recent press articles and views might help...if you haven't already seen them...
https://www.theguardian.com/business/2021/oct/15/why-are-shares-in-thg-tanking-and-what-are-the-companys-plans
https://www.theguardian.com/uk-news/nils-pratley-on-finance/2021/oct/14/thg-needs-to-reassure-shareholders-and-get-a-proper-chairman
https://www.proactiveinvestors.co.uk/companies/news/963085/thg-plc-under-scrutiny-as-the-city-finds-its-next-tech-valuation-to-worry-about-963085.html
https://news.sky.com/story/why-the-hut-group-looks-set-to-remain-in-the-doghouse-with-some-investors-12432910
https://www.theguardian.com/business/2021/oct/18/thg-matthew-golden-share-price-london-stock-exchange
https://www.theguardian.com/business/nils-pratley-on-finance/2021/oct/18/hut-group-misadventure-offers-lesson-in-control-to-wannabe-zuckerbergs
I will look again at £5. Thin we will see this soon as FMV
I reassure myself on my investment here by thinking about the value of the underlying businesses using what I believe are reasonable multiples given the market position of the businesses and sales
So for THG Nutrition if you used 2.5x - 3x sales = c1.75bn; THG Beauty 2.5x - 3x = c3.5bn;
Liberium have given a min value of 1.75bn for ingenuity.
So we stand today at about 4.5bn vs the sum of the businesses at 7bn. So for me in at 291p it is at least 450p before I look again at this.
Hmmm. Some hefty trades to end the day.
I keep an open mind on pace of recovery.
Good post Sb2020 - It's estimating commercial value :-)
I think it will be > £4 by announcement of THG results next Tuesday. II's are loading up quietly
Mikey -
Imo the doubts are from lack of details.
1. For e.g. Ingenuity is touted as next big ecomm innovation and Softbank valued ingenuity alone at over $6B in May 2021 and also invested $730M. That's great. But for doubters - Ingenuity revenue was only at $85m for H1 2021. So doubters feel it is overvalued or struggling to value it.
2. Overall H1 EBIDTA is $81.2m, but company is still making loss, some people want to see break even soon and also want to see less of cash burn.
3. Not enough details on customers. For e.g. Nestle is a key customer of ingenuity, yet not enough details of that deal. Similarly of other key ingenuity customers.
4. City is still confused of proposed company demerger of beauty, ingenuity and health businesses
etc tec.
Imo, all these will eventually become clearer perhaps starting from trading update next week, but now is the opportunity 'to load up' especially if one looking for bigger gains. Sometimes 'market uncertainty' is best time to load up the shares as long as there is high probability of business success which is the case for THG. One thing I would say though is, had THG been in US it would have been valued much much higher.
Anyone on this board have proper insights into the business. Lits of wild bs posts by shorts and bulls who got caught in the drop. THG has good fundamentals, strong revenue and posting high growth. Most of the analysts have a price target of 700. What am I missing here? Fact driven answers if you have them pleae
All coming together very nicely..................over £4 by next Wednesday !!
Matthew Moulding, CEO, commented:
"After the anniversary of our 2020 listing we feel that the time is right to make this next step and apply to the Premium segment in 2022, thereby continuing the development of THG as we endeavour to deliver our strategy for the benefit of our shareholders, key stakeholders and employees."
Moulding / team are said to have privately briefed large institutional shareholders last week - post the 35% share drop
The institutions must have known the Golden Share/pledge would be removed ditto respected Chairman to follow, suggest they may have been privy via conversation to headline sales / margins in advance of next weeks results, this has led to large shareholders actually topping up their already large holdings in THG
Nuri - You sound desperate. Imagine if everyone invests going by FT article ! They had also said shopify will not work or Tesla is doomed to fail when it was few billions. Perhaps works for you? Are you still nursing your Boohoo losses ?
THG is on its way to some 500p by end of next week
FT thinks the changes are window dressing. How true. This company is worth £100-200 million max.
Thg was my first share bought so was a little green on the way sp s work.
Thg is a great company, with a great infrastructure, now valued correctly. It is just about to go through a busy sales period. It needs transparency and steady solid growth as oppose to trying to grow to big too soon.