Member Info for 1pencil

Good follow through across the pond Thursday, up 14% on decent volume, very risky holding it down to fill orders!

Remember this lot with their 'uninvestable' theme last year

Morgan Stanley moves ahead with plan for wholly-owned futures company in China, as Beijing accelerates financial opening

https://www.scmp.com/business/banking-finance/article/3216210/morgan-stanley-moves-ahead-plan-wholly-owned-futures-company-china-beijing-accelerates-financial

The RNS of course is welcome but it is none the less borderline in terms of being meaningful, it probably crossed the line due to the exceptionally long contract time of 10 years, plus I guess some badgering from shareholders.

If they receive an offer it will have to go out for a vote, CKHH may not be keen on this but its obvious the many advantages that come with being part of a larger organisation.

They have sold strategic assets before in the past, most notably Hutchison Networks agreed to sell the interests in its tower assets for EUR10b.

As a board they have a duty to shareholders for best returns, only takes one activist investor to shake things up.

China, lots of activity - delegates from EU meeting Chinese President Xi Jinping, Macron first up.

Best of luck davey, for those looking in from outside we see the combined value of say Takeda deal approaching HCM's total m/cap, it would be logical therefore to buy the company.

Aside from the obvious undervaluation there are so many other synergies and cost savings, being listed on three different exchanges, management time and associated costs - this is the tip of an iceberg when looking at corporate structures.

The chap from General Atlantic who sits on the board may help things move in this direction, recent appointment below.

https://www.generalatlantic.com/media-article/mark-stevenson-joins-general-atlantic-as-senior-advisor-focused-on-life-sciences/

Good start to the tax year, not many companies inking 10-year partnerships - helps with future cashflow projections, well done THG team.

One thing I have noticed is how 'sticky' Ingenuity customers are, this can be seen with partners such as Pentland Group adding on brands one by one, not dissimilar to Nestle and others.

“If you build it, he will come.."

ahh.. I did wonder that but couldn't find much info under THG, probably The Hut back then.

edit: just noticed its on their wiki page:

IdealShape 2016 £30.7M A US-based dieting and nutrition brand based in American Fork, Utah. exante Nutrition

Difficult to get any stats but established almost 20 years ago in US, complementary to Exante, good bolt on it seems.

Looks as though Exante US has purchased part/all of Ideal Shape

https://www.idealshape.com/

Yup, reduction in shorts but no squeeze, price actually went down.

I still maintain the best and most obvious route for Hutchmed is a takeover by either Astra or Takeda, both these entities have existing and well established operations in China with ambitions to expand.

The synergies between these companies is fairly obvious, for shareholders it unlocks years of accumulated value.

Staying the course going it alone is always going to be tough for all the reasons mentioned.

Drug giant AstraZeneca teams up with Hong Kong Science Park to drive biotech, medical research growth

Latest collaboration will see AstraZeneca and HKSTP help overseas and mainland Chinese start-ups under the park’s incubation programme

AstraZeneca is ‘well-equipped’ to help nurture health talent and drive growth in Hong Kong’s drug development and clinical trial processes

https://www.scmp.com/business/china-business/article/3215999/drug-giant-astrazeneca-teams-hong-kong-science-park-drive-biotech-medical-research-growth

Ditto, good spot dafad, more so as Matalan were highlighted in Jan ~TU

Really starting to come together now, just need Pentland Grp to nudge JD in the right direction and away we go..

“China’s growth recovery and north Asia’s earnings rebound in 2024 remain our key investment themes and overweight areas,” Goldman Sachs’ strategists, led by Timothy Moe, wrote in a Saturday note.

The firm reiterated its expectations for China’s economy to grow by 6% this year — more than the government’s target of “around 5%.” The Goldman strategists said their views are supported by strong activity data seen in the previous quarter.

https://www.cnbc.com/2023/04/04/asia-markets-expected-q2.html

"Pentland Group holds a 51.89% share in JD, the UK’s leading retailer of branded sportswear, fashion and outdoor clothing and equipment. JD employs over 67,000 people, operates in 32 territories and has over 3,400 stores."

Speedo is part of the Pentland Group who own;

Berghaus - THG Ingenuity
Canterbury THG Ingenuity
ellesse - THG Ingenuity
Endura - THG Ingenuity
KangaROOS ?
Kickers - THG Ingenuity
Lacoste ?
Mitre ?
Red or Dead ?
SeaVees Shopify
Speedo UK THG Ingenuity
Speedo US THG Ingenuity

"Our businesses are changing rapidly, but our people and our values remain at the heart of what we do. Pentland Group has annual sales of $8 billion USD and our businesses employ over 68,000 people."

https://pentlandgroup.com/about-us/

https://pentlandbrands.com/our-brands/

Its a re-run of what happened before last year, any excuse real or not to move the stock prices up/down profiting along the way.

The truth is there is very little they can use not that HFCAA is resolved, China is also on the front foot softening their stance on tech/overseas companies.

..hence the shorts closing..

Added a fair chunk, chances of corporate activity at this level seem to more than justify increased holding, plus we now have Takeda de-risking future cash flows.

Seems to make sense to just buy out HCM altogether, good read :

http://www.chinadaily.com.cn/a/202303/31/WS64263422a31057c47ebb7918.html

Sorry davey, just re-read my last post which sounds a little blunt, wasn't meant to just highlighting nothing has really changed (apart from s/p).
---------------
Below is the last reported notification from Goldman Sachs, after this M & G added some whilst dramatically reducing their short position.

Long position 42,554,228 ~ 4.92%
Short position 35,061,495 ~ 4.06%

Speedo USA just popped up on top 500, UK was already noted but USA could be a new one.

URL has a prefix

https://us.speedo.com/?ref=aftership

https://www.speedo.com/?ref=aftership