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OVMK have provided some commentary on current events (Dutch version only at present).

Nothing new but handy to get an outside perspective as it were, we await the circular..

Out of interest just looked up short position on Innovent, HK $ 2,158,719,259

Converted into EUR 253, 105,299

Thought this was a great summary of Ai, its great but at the end of the day its just a tool which needs a creative mind.

He explained to Vulture that AI was employed to replicate all the typical 'finale' clichés—like Principal Skinner resigning from Springfield Elementary and Mr. Burns dying—highlighting the lack of creativity inherent in AI.

'AI is good at regurgitating but not at being imaginative,' he explained.

https://www.dailymail.co.uk/tv/article-13913135/The-Simpsons-showrunner-reveals-joke-mistake-finale-episode.html

In most cases its not the share holders buying/selling, rather hedgies that open/close their positions, ETF's and trackers also.

Its now become a major part of daily trading, ETF's and trackers have their own economic models which hedgies try to emulate, this is very evident on two other positions I hold where small daily changes can be seen across a multitude of ETF/tracker type funds.

This herd mentality creates some great investing opportunities but I wouldn't want to be part of the herd : )

..long live the rabbit..

China and the United States have agreed to improve coordination and cooperation on global health affairs between their technical agencies, state news agency Xinhua reported on Monday.

Following talks in Washington, Cao Xuetao, the deputy head of China’s National Health Commission, said China was willing to better communicate policies with the US and work together on areas such as cancer prevention and treatment, chronic disease management, ageing and medical research.

Andrea Palm, deputy secretary of the US Department of Health and Human Services, said she was looking forward to cooperation in health-related fields, which also include climate change-related health issues, nutrition and antimicrobial resistance.

https://www.scmp.com/news/china/article/3280709/china-us-agree-revive-health-cooperation-after-years-long-chill?module=top_story&pgtype=homepage

Maybe THG advisers are waiting to see level of support/demand for IPO, if its strong then Ingenuity might follow?

Ta for that, curious to see who the new share holders are, also timing of IPO possibly spurred on by budget reforms but still CD category which is not great at the moment.

Now in the last quarter which is seasonally always good for THG, Yen on the up again but still off recent highs.

Some stonking returns for China focused funds ..

https://www.cityam.com/china-funds-dominate-september-as-londons-aim-slumps/

Small world, wasn't aware Pentland Group had an indirect holding through JD Sporst

'FTSE 100 sportswear giant JD Sports bought a 32 per cent stake in 2021.'

https://www.dailymail.co.uk/money/index.html

Joking aside, if you click on the five year chart on the below link it shows higher lows with the highs continually being capped at $20.

If this trend continues something has to give, still a fairly chunky short position in HK of 18m shares, that in itself could provide the catalyst to pass through this ceiling.

I rest my case lol..

https://finance.yahoo.com/quote/HCM/

It wouldn't surprise me if one of THG's current partners step up, Nestle being a good example having decided to upgrade the Purina pet factory, a product line distributed by Ingenuity.

Nestle expanded their range not too long ago with Vital Proteins both here and Australia adding to the partnership.

I can already sense a reversal of sentiment around Ingenuity, won't take much to tip the scales in our favour.

https://www.nestle.com/brands/petcare

China pulling out all the stops..

China’s central bank tells commercial lenders to start cutting rates on existing mortgages

Published Sun, Sep 29 202410:14 AM EDT

https://www.cnbc.com/2024/09/29/china-central-bank-tells-lenders-to-cut-rates-on-existing-mortgages.html

'Nestlé reveals £150m plans to transform major UK site'

https://www.cityam.com/nestle-reveals-150m-plans-to-transform-major-uk-site/

Background links:

Ryan Birch

Global Head D2C @ Nestlé | MBA, eCommerce

https://www.linkedin.com/posts/ryan-birch-334b8052_d2c-ecommerce-activity-6917401252691619840-9Qx3/

https://www.thg.com/news/thg-ingenuity-and-nestle-health-science-sign-global-technology-partnership

https://direct.purina.co.uk/

The reason for highlighting these points is to avoid history repeating itself, very similar circumstances prevailed at the time of IPO.

In order to get the IPO away at a premium it would look better if the debt was taken off the balance sheet, plus the world was suffering from COVID hangover with properties not that favourable, especially hotels.

Matt took on the debt and risk, IPO was a huge success.

Roll on 12 months world comes back to normal and sellers remorse sets in.

The good part to all of this is Ingenuity will finally have a market valuation which it currently does not, THG shareholders will still benefit but have a smaller piece of the pie imo.

Looking at it from the boards perspective can they endure another three years while Ingenuity becomes profitable, doubt it so this is probably a sensible move to release value keeping everyone happy.

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Crafty, posts on China, big impact on Hang Seng Index

China bids to kickstart struggling economy as it unleashes biggest round of stimulus since Covid

https://www.thisismoney.co.uk/money/markets/article-13887669

Its the listing category that's preventing UK fund managers buying, most institutional mandates simply do not include anything without a proper listing, SFOR is currently resides in the transition stage.

Positioned between 456/7 it doesn't even have a designation, may as well not exist as far UK fund managers are concerned.

https://www.stockchallenge.co.uk/ftse.php

I've used those exact words ' Whatever that price may be, it's not going to please everyone. It never does' as the board are in a very difficult position, as are investors.

Both want the share price to go up but at the same time know they shouldn't be selling a key asset at the bottom of the market, once things improve I think many will question the idea conveniently forgetting it was theirs at the time.

This is why I think its important for management to quite literally spell it out in capital letters at the top of the circular.

Things are a little different this time around as we approach the round number summit. China stimulus measures coupled with lumpy fed rate reduction, both of these seem to have more influence on biotechs than anything else, including pipeline news most of which has been ignored for HCM

Big HK short position needs to cover too...

Big jump in CD (for iShares) now at 11.21 from 11.01, that' either 5 or 6 consecutive days of increases.

https://www.ishares.com/uk/professional/en/products/244049/ishares-core-msci-eafe-etf