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Blackrock have sold 58m off market to waiting buyers at 195p
They will still retain something in the region of 65/66m by my calculations going off of their disclosure on 13th October
Puts a floor under us to build from, onwards and upwards as we await the TR1’s
What holdings percentage Blackrock issue to the market. Seemingly GS brokered a done deal for Blackrock, seen them do this plenty of times - a great way for large shorts to cover too
Blackrock last disclosed with a 9.54% holding as of 13th October
Don’t be fooled thinking Blackrock have sold anything at a loss, they will have made big here on the way up and on the way down
Hopefully a return to some fairly normal ‘fair value’ trading from this point onwards
Particularly for beauty with the addition this year of Cult Beauty
11,500 luxury beauty advent calendars sold within 2 hours of launch at £215 each - no website downtime either as people rushed to order this coveted seasonal product
Massive revenues on one single product which I suspect is a high margin line
https://www.independent.co.uk/extras/indybest/christmasgifts/beauty-advent-calendar-makeup-uk-b1904055.html
Only PSquared disclosed at 0.69% which makes me think we have existing institutional holders lending/shorting to profit and maybe accumulate but as long as they remain net long for FCA reporting their shorting activity will never be disclosed
https://www.**********.co.uk/listings/LON/THG
The price action is simply a message to Moulding “Don’t Diss the city boys” he should never have opened his mouth about being under a short attack
If Sunak wants to attract tech and big IPO’s to the UK he’s going to have to make some changes. If THG had IPO’d in the US we wouldn’t be having this conversation
Remember Ocado, Amazon, Tesla…. All had their doubters who couldn’t or wouldn’t believe their story
THG are doing just fine and on a personal note I’m a parent to two teenage daughters and my girls spend a small fortune regularly with Cult Beauty and Look Fantastic
Cult Beauty provides access to the latest overseas products with ease and without custom charges etc
I’m waiting for Q4 update as I think it’s going to be stellar
as they set out to create disruptive tech that few understood - was infamously one of the most shorted stocks and dropped significantly
Only on Tuesday, Ocado OCDO.L lowered the price range for its flotation to between 180 and 200 pence from an initial 200 to 275 pence.
“Even at the revised valuation, the company is still overvalued and expensive. We would not be surprised to see hedge funds shorting the stock,” said Amisha Chohan, an investment analyst at HB Markets.
THG also appointed Andreas Hansson, a managing director at Japanese conglomerate Softbank, as a non-executive director. Analysts at broker Jefferies trimmed their target price to 700p from 920p. They said the update 'should reassure' on the progress of Ingenuity and the strength of THG's relationship with Softbank following Hansson's elevation to the board.
Valueplay - thanks for posting, a great article
Without doubt there are issues but one of the positives for THG is that they’re not reinventing the whole wheel, times have moved on significantly from when Ocado were first positioning themselves as a tech company rather than a grocer and THG have the benefit of observing the lessons learned by Ocado along the way
If Ingenuity is described as “business in a box” by THG management, then Ocado is business in a big-box warehouse. So it makes sense that THG fans could look at Ocado with hope. After all, its share price has soared from just over 50 pence to about 18 pounds.
Sound familiar? I remember trading these below 200p
https://www.reuters.com/article/uk-ocado-idUKLNE66K00320100721
Only on Tuesday, Ocado OCDO.L lowered the price range for its flotation to between 180 and 200 pence from an initial 200 to 275 pence.
“Even at the revised valuation, the company is still overvalued and expensive. We would not be surprised to see hedge funds shorting the stock,” said Amisha Chohan, an investment analyst at HB Markets.
That exist between Ocado and what THG have with Ingenuity
https://www.reuters.com/technology/ocados-world-rise-machines-is-unstoppable-2021-10-25/
At Erith, Jensen is already thinking about taking Ocado's technology beyond grocery retailing into general merchandise.
"It's definitely an option longer term," he said.
Only one disclosed short PSquared at 0.69%
Remember it’s net short positions that are reported - those holding long wishing to accumulate or profit short term will short too but will come in under the 0.5% disclosure threshold
issued mid September 2021
Outlook and guidance - Trading remains strong so bodes well for upcoming Q3 update
Guidance is in line with the Group's statement on 4 August 2021 on a constant FX basis.
· Trading remains strong and we are confident in delivering FY 2021 Group revenue growth of between +38% to +41% on a constant currency basis (reported growth of +35% to +38%).
· Margin guidance remains unchanged at stable adjusted EBITDA margins on a constant FX basis, before taking into consideration the dilutive full year contribution of Dermstore (which is expected to be in line with Group margins by the end of 2022).
· FY 2021 capital expenditure guidance for the Group is between 10.0% to 12.0% of Group revenue (vs 14.8% in 2020). The continued level of expenditure is driven by an acceleration of growth plans to support our own brands, Ingenuity clients and reflecting investment in acquired assets.
· The Group continues to take a highly selective and disciplined approach to M&A, with strategic priorities remaining beauty brands, and assets that extend the Group's vertical integration, and expand its brand building and digital commerce activities. The capital raise in May 2021 provided >$1 billion to support the Group's successful M&A strategy, with a select number of value-enhancing opportunities under evaluation.