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Market is super fickle, the moment THG pay down debt rates will go down and the market will start criticising companies for holding cash, always happens.
The absolute worst thing any listed company can do is deviate from their strategy by pandering to analysts who lets face it, have no idea how to run a business.
@osg your concerns re MM being able to deliver a partnership deal are valid. MM has it all to prove at this stage. But silence doesn’t mean no interest.
@ryanf the Liberum note refers to the SOTP valuation see link below if you haven't read it. They believe that the SOTP valuation is £2.20 and this is why I think the pivot from IPO to partnership is telling. They have to release the SOTP before they can IPO
https://www.lse.co.uk/news/liberum-lifts-thg-to-buy-3mfqahptbzszrvv.html
Liberum lifted e-commerce group THG to 'buy' from 'hold' on Monday, hiking the price target to 220p from 55p as it moved to a sum of the parts valuation
I think clearing the debt is just as important as returning to profitability. A good partnership deal will help both.
3 separate divisions debt free with change left to M&A distressed comps and FCF positive FY2024
The 20% sale of Nutrition will release the SOTP of the other divisional groups.
Remember Celsius recently got x11 with their Pepsi deal and celsius weren't even profitable at the time
Exactly needs to return to profit on all three
Crafty, how do you expect to list Ingenuity in the US if the current market value of said division is zero/negative?
That should read sale not *share* I wish LSE would let you edit
OSG the fact that in the recent Jeffries note they say IPO has been mooted and there seems to be a pivot towards partnership/parcial equity share is significant. This came from management a few weeks ago.
For what it is worth this is what I want to happen.
Going Forward:
Sell 20% of Nutrition
Release SOTP
Pay Off Debt and M&A distressed comps
IPO Ingenuity USA
Split Nutrition and Beauty
See if the value increases on LSE (which I doubt)
If LSE stifles growth re list both comps on different exchanges
Hi Crafty I just saw you mention it and thought here we go again. Sorry you weren't the initiator.
YesImabeliever, reference a partnership deal I am simply going off the fact it has been mentioned from the time of the door being slammed abruptly in the face of Apollo and it hasn't happened since then, and despite several airings of this being MM's preferred way since. Still nothing so up to this point Nobody has been interested. Would you seriously hand over your money to MM for a bit stake and leave him in control. No you would wish control yourself.
Anyway its ticked into the blue which is pleasing.
There are other Nutrition companies but none are as ripe for the picking as MyProtein.
Happy for folk to post alternatives.
Remember THG Nutrition's Market Cap is currently c£250m rev £660m profit £100m
I think the SOTP RNS is more important than the next quarter's results. MM has to drop it and has to drop it soon.
I think the Jefferies note is telling, Nutrition start is challenging and IPO is now mooted and instead replaced with selling minority stakes in Beauty or Nutrtion, this has all come after Jefferies met with management a few weeks ago
Woohoo no more comments from yespb
This my last comment on this as I am not paid to post my thoughts every 5 minutes.
Crafty desperately wants you to believe him, I on the other hand I am not troubled by fact that you might not agree with some or all I think and post, in the final analysis there just opinions.
So my final comment on this thread is this. Do you believe Crafty when he states there are only 3 nutrition companies in Europe and North America that someone like Unilever could partner with and out of the 3 THG's nutrition is the clear and obvious best choice ???
Watching from the sides for some time now though not a holder. This smacks of my worst purchase to date. That of Saga. That was my biggest mistake far. Absolute dog of a share. Good luck all.
If we hit good next qtr then its all gravy....if we dont we are screwed
@yespsb we have been told that there have been bids AFTER the failed Apollo bid so when you say
'The problem in signing up a meaningful partner is Moulding insistence of having the last word, it always Mouldings way or no way as the well respected and powerful Apollo found out to their cost.'
So your statement is factually incorrect
If THG come back in profit for this qtr then that is the case it is not worth selling/relisting a company when it could be worth lots more with a good paint job/compounding results
Remember THG Nutrition has had more bids than any other division, so why wouldn't someone want to partner up with them? They are by far the best company out of the 3 that are currently on offer in the Nutrition sector
The problem in signing up a meaningful partner is Moulding insistence of having the last word, it always Mouldings way or no way as the well respected and powerful Apollo found out to their cost.
Standing back from all the for/against THG noise if you were a Unilever or anyone of the other global brands and you wanted to strike a long term strategic partnership in the beauty or nutrition sector you have a huge amount of choice in Europe and North America.
So the question then becomes obvious, what are the unique reasons you would chose to partner with THG rather A.N.Other ? Ingenuity isn't it because for all its investment and Mouldings drum beating the facts are simple, its not winning enough third party business and therefore its current go to market proposal isn't good enough and then there's the Moulding factor to take into account.
I am not for one moment suggesting there's not value in partnering with beauty or nutrition, but right now I struggling to see a compelling case for selecting THG ahead of others.
OSG I didn't bring up the Jeffries note @yespsb did, you say no one is interested in that approach. I disagree if the THG Nutrition bit about 'having a challenging start' has come from THG then so must have the bit about selling a minority stake in Nutrition or Beauty.
IMHO, you cannot pick a negative from the note and say that bit is true and then pick a positive and say that bit is false.
You really are an odious, arrogant fella Ste. Yes, there is a relationship with Jefferies. Back under your rock
Jeffries is one of THG 3 house brokers. good your knowledge continues to have glaring gaps
Who says nobody is interested in a partnership/deal? Jefferies advised THG on the Apollo deal, there is clearly a relationship there. MM needs to do a deal of some sorts pretty soon, otherwise II support won’t stay patient forever
Craftyinvestor much though I would love to see a minority partner - nobody is interested in that approach.
Please can we also stop repeating the Jeffries note for they met recently with Mgt and are saying Nutrition has had a difficult quarter so that looks like it came from @THG. This was meant as well to be the New Year resolutions, keep fit and double freezer capacity meals at Iceland quarter !!!
The silence in Institutional buying, even at these levels is eery.