Opened a position13 Nov 2021 22:50
I've been stalking this board for a month now, mainly looking for any sort of new information regarding the absolute annihilation of the share price.
Strip out Ingenuity and completely discount it, this is a behemoth of an e-commerce player and their strategy regarding acquisitions has to be admired. Constantly reinvesting back into the company now will turn this into an even bigger player in the years to come. It's a no brainer. The trouble is the UK market and the unbelievably self-entitled bitty City boys tantruming over loss-making businesses.
I get it. The US has infinite capital and investors can afford to be patient and sit on their money. Over here, not so much. Unless a company has positive cash flow, regular dividends and a boring, beige board of directors, the City just doesn't want to know. Which is why we're under an assault of never-ending negative press written by morons who take money from even larger morons.
We're talking £2bn in revenue, 46% gross margins, 8% EBITDA margins, 40% annualised growth. How do these numbers justify the current valuation that we previously saw in 2017? Even the PE buyout offer a couple of years ago was almost double the valuation that it is now.
Whether you're long or short, why not just take a punt? There is no way on God's green earth that this share price is even remotely accurate to THG's actual worth. It may take a month, six months or a year for the actual value here to be realised. Who cares. Just sit back, watch the Tik-Tokers and Instagramers fill up their baskets with the latest make-up trends and watch the gymbois rattle their shakes with cutting-edge creatine. THG isn't going anywhere. Hell, it might end up going private again, but the buyout price is at least double where we are now.
Stop giving idiots, moronic journalists and spammers the time of day. If you're an early tech investor, you know what to do.