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The HK short positions whilst delayed are highly correlated to HCM's s/p, no question there.

Also bear in mind there have been no reported sales by LTH according to HK web site, selling has to come from somewhere.

BoD will be only to aware of the decline as it demoralises everyone, especially those with options.

Out of all the recent developments Frasers coming onboard is a welcome addition imo, as mentioned before he may act as a sounding board for Matt/BoD given his wide ranging experience and success.

Yorek highlighted a while back the possibility of Frasers taking advantage of the fund raise to buy in without moving s/p, looking at the wording it highlights the existing partnership with Frasers then goes on to say;

'Following the launch of THG's public bookbuild, Frasers confirmed their intention to make a strategic investment of £10 million in THG, underscoring their commitment to the multi-year strategic partnership. '

It will be interesting to see what the final outcome is, I can see merit in both choosing to remain with THG could be the start of stake building as with their other retail holdings.

Availability of stock to borrow at lows;

Last update : 9 minutes ago

Time Since

Last Change Timestamp (UTC) GB:THG Short Shares Availability

6 hours ago 2024-12-12 07:50:02.82 1,400,000

7 hours ago 2024-12-12 06:47:25.759 4,200,000

1 day ago 2024-12-11 06:47:13.071 4,700,000

1 day ago 2024-12-11 06:15:47.545 3,100,000

2 days ago 2024-12-10 06:16:54.009 4,300,000

2 days ago 2024-12-10 05:45:43.358 3,100,000

4 days ago 2024-12-08 04:40:53.353 4,800,000

6 days ago 2024-12-06 07:48:33.373 4,700,000

6 days ago 2024-12-06 06:45:48.905 4,800,000

6 days ago 2024-12-06 06:14:37.731 3,200,000

HUTCHMED: ORPATHYS And TAGRISSO Get Breakthrough Therapy Designation In China For NSCLC

December 12, 2024 — 12:02 am EST

https://www.nasdaq.com/articles/hutchmed-orpathys-and-tagrisso-get-breakthrough-therapy-designation-china-nsclc

Under the original agreement with Softbank THG kept control, that of course made perfect sense but with this deal its replaced with existing THG shareholders investing direct into Ingenuity.

'which will be separated into a THG owned and controlled subsidiary capable of receiving the investment'

This is what the majority of shareholders now want but I do not understand why, it makes no sense at all.

On the same day a fund raise was announced which was subsequently up-scaled due to strong investor demand:

· Proposed c. $1bn capital raising consisting of a subscription of approximately $730m from SBM and a placing of up to $270m with long-standing, technology-focused shareholder Sofina expected to participate in the placing in an amount of up to $85 million, with gross proceeds to be deployed to execute an advanced pipeline of strategic M&A over the course of FY 2021

Placing price 596p per share, THG's current market cap around £700m

Yorek, undoubtedly someone like Mike Ashley will know the value of these Autostore fulfilment centres off the bat, investing in Ingenuity at these levels from his perspective must seem like extreme value having gone through the whole exercise himself many years before, that said its only £10m which may have been all that was available joining late to the party as it were.

The fund raise shares are earmarked for conversion into 'B' shares so not really a cheap entry point into THG, I do expect that to change over time with market purchases in THG as with other Fraser invested companies.

I need to re-read the documentation this weekend as often miss something first time around, its a shame that investors are being put in this position but I guess this is the desired route favoured by major shareholders.

Staggering to think Ingenuity was valued at almost £6.3b in May 2021.

· SBM option and collaboration agreement for a $1.6bn investment in THG Ingenuity, implying an enterprise value of $6.3bn for a 19.9% equity interest. THG Ingenuity comprises the Ingenuity platform IP and the Ingenuity operating trade and assets, which will be separated into a THG owned and controlled subsidiary capable of receiving the investment

You would think the local press might be reporting if nothing else, quite an accolade to have top five Autostore facility, also from a shareholders perspective similar to THG extolling the virtues of automation.

Automation throughout history has always been contentious, Frasers may wish to keep a low profile given previous media attention.

Along with HB I think it gives credit to THG's strategy of automation despite the current unwelcoming environment, someday it will change as it always does..

Mark Evans is someone to watch imo, founding partner at Balderton Capital, hugely successful, Mark holds THG but has participated in the Ingenuity fund raise too.

Here's something to throw into the mix, Yorek (and others) would appreciate your thoughts on this as a bit perplexing.

When Frasers involvement became known looked at their current warehouse situation, nothing too in depth posted a few links at the time with posters commenting Shirebrook had problems with staffing and such..

Searches showed photos from this period, nothing that I could see to suggest not only had improvements taken place but it was the worlds 5 largest Autostore facilities, even now this only popped up from a third party link from a fire systems company.

Direct YouTube links no longer seem to work, search for 'Fire detection and extinguishment system for Frasers Group – Europe’s largest automated warehouse'

The only other reference is a FB post by Frasers:

Our automation journey started four years ago. We now have one of the Top 5 autostore systems worldwide

https://www.facebook.com/watch/?v=963815077692637

Publicity wise, you would think this would be a huge win for Frasers similar to THG announcing open days, yet the whole operation is hardly mentioned.

Whats interesting about S4 is the ETF/trackers which have been selling are most likely doing so due to S4's low market cap, again some similarity with HCM as not company specific.

The other thing which stands out is how three value funds have all honed in on S4 at roughly the same time, would be nice to see same happen here.

Lastly, if we look at a five year chart of Int Biotech fund performance has been pretty dismal also:

https://uk.finance.yahoo.com/quote/IBT.L/

The markets are being dominated more and more by automated funds, be it trackers ETF's or hedgies - generally these are macro driven than stock specific which is why little happens on any news, HCM could be part of a hedging strategy based on the sector or possibly even the index, long S & P short HK sort of thing, very hard to tell.

The company is progressing which is the main thing, balance sheet building at some point the impasse will break, total short interest is quite small, even a small long only fund could change the balance.

Have a look at my recent posts on S4 regarding value funds, way, way out in front of hedge funds.

Money, that's about the gist of it but confirm exact details with THG helpline.

If you have an an idea of when likely to sell perhaps at IPO if that happens, then its probably worthwhile just keeping the share certificate until ready, avoids custody fees some brokers charge.

Usually with non Crest shares you get a paper certificate which can be deposited with a broker or kept safe with the holder, with the latter you don't need a broker until the point of sale in which case need to inform selling agent (broker) that its non Crest and certificated, normally this means a T20 sale to ensure certificate is received and forwarded on to purchaser once sold.

Amones, with regard to the short selling, went through HK data sheet looking at both Innovent and BeiGene.

FX conversion into GBP at the bottom of each entry, I haven't check Mcap for the other two but in Hutchmeds case the actual GBP amount is quite small v Mcap.

If we spin that around and look at the percentage from a free float perspective it appears quite high, maybe the hedgies are not aware of the latter (yet :))

1801

INNOVENT BIO

62,961,041

$ 2,329,558,517

GBP 235,576,605

6160

BEIGENE

7,681,085

$ 874,107,473

GBP 88,394,118

13

HUTCHMED

16,950,601

$ 462,751,407

GBP 46,795,736

sp****

s p a r s e

lol

came across this video by another company on fire systems, it feature fraser site in shirebrook, mansfield which appears to have a full autostore facility up and running.

there's not much detail but it suggests earlier images may well be outdated, frasers do have a fb video but again info is sp****.

https://www.youtube.com/watch?v=jaqe2_ynza4

frasers can obviously see the benefit hence their interest in ingenuity ?

4. Frasers Plus

· Good progress towards our long-term ambitions of delivering £1bn+ in sales, £600m in credit balances, a greater than 15% yield, and over 2 million active Frasers Plus customers (excluding any third-party partnerships). The business added 272k new customers in FY25 H1 and ended the period with an active customer base of 377k, at which point Frasers Plus accounted for 13.7% of UK online sales.

· Strategic partnership with THG plc ("THG") off to a positive start. After period end, announced a second Frasers Plus partnership with Hornby plc.

Frasers half yearly report:

3. Acquisition integrations and automation synergies

· £74.7m of cost savings and synergy benefits offset the planned reductions in low margin sales at Studio and Game, and the impact of right-sizing JD Sports Fashion Premium Brands and SportMaster in Denmark.

· Increased warehouse efficiency, driven by automation and rationalisation of our warehouse estate, enabled a £298.8m (16.5%) reduction in gross inventory year on year, ahead of our target of a 5%-15% reduction by the end of 2024.

Good post, lets see how this month plays out especially when THG's market cap will drop once 'B' shares are cancelled.

I would be very surprised if there isn't buying at this level.

An interesting similarity between the below funds is their approach to investing, all long term, value orientated with 'patience' being an often used term (one actually Patient in title) .

Gabelli Small Cap Growth

Patient Capital Management

Third avenue value fund

This is the polar opposite of tracker funds which are anything, but patient lol ..

One other thing that stands out from these two groups is returns, typically a (non S & P) tracker such as the ones mentioned in previous posts return in the region of 5-7%, contrast this with the above group, no comparison really.