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Typical self serving Guff from a short.
If peace is negotiated in Ukraine imagine what that will do for companies like THG and ASOS. Interest rates, inflation and bills will fall and consumer spending will increase. If this were to happen then I would expect an offer over £3. The general market will increase substantially but retail stocks will rocket.
I wouldn't be surprised if a certain PE house is using hedge funds to keep the price low thinking they will pick it up on the cheap. The funny thing is that MM will probably take it private so that is the ultimate two fingers to the city mafia.
MM is planning something and we shall find out soon but his recent overseas visit and now the selling of his property portfolio looks like he has plans to take THG private.
We have a beaten up stock market because UK pension funds only invest circa 2% of the funds in the UK. Not that long ago it was in the 50's. Add in hedge funds to the mix shorting and the press working for them it creates valuations that are ludicrous.
Perhaps government intervention is needed for a minimum investment by UK pension funds (circa 30%) to invest a minimum amount in British companies after all it's to the benefits of the workers whom are paying into the funds. Companies could expand, employ more people and pay higher salaries. It seems though that the pension funds would prefer to invest in overseas companies such as Amazon. How much tax do they pay in the UK? What is the average salary they pay in the UK? It would seem that the UK has a self fulfilling prophecy to beat itself up at its own expense and even more so post Brexit.
There is so much talk today on various boards that UK companies should list in the US instead in order to have better valuations. This is not the answer or the fix as If this happens the city will die and what will that do the overall UK economy. It pays sometimes to be careful for what you wish for. Investors need to have horizons over years not days or weeks.
The deal price was thought to be between €1 -€2Bn for creed. No wonder MM has had every PE house after THG. Surely THG's beauty division alone is worth considerably more than Creed and yet THG have a mkt cap of circa £1Bn. If the market fails to value THG at a fair price I can't see it remaining on the LSE for long.
So many retailers in the UK are rumoured to be takeover targets. I don't think it will be long before this hidden gem is on the receiving end of one.
I think there is more likelihood of ASOS and THG being taken over rather than Ocado. Unfortunately most of the UK's retailers have been shorted to oblivion so there is no surprise that they will be picked up one by one. I doubt that many of them will be listed on the LSE in the next year as they will either become a subsidiary of a larger retail group or on the books of an overseas PE firm.
If the BOD don't think it's cheap enough perhaps they should roll up their sleeves and ditch the desk for shovels and picks and find us an exceptional 1000ct diamond, even better if its a pink one...