The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
You've also claimed they have a terrible reputation but they keep winning awards plus scoring well in rankings. For instance:
Petrofac has taken third place in ‘Oil & Gas Middle East’ magazine’s Top 25 EPC companies list for 2022.
The magazine ranking took into account financial reports, current and completed projects, project backlog, sustainability initiatives, and the company’s overall impact and future potential in the Middle East.
The publication notes Petrofac’s increase in bidding activity and efforts to rebuild the backlog, focus on new energy projects, and significant growth potential in the region in 2023, as main reasons for the high ranking. The Company’s ambitious net zero and diversity targets are highlighted with the publication specifying there was a key focus on ‘company’s involvement in addressing climate change’.
Snapper - it's good to hear fr sbdy that is bearish and you make interesting points.
However, in quoting EPC jobs almost complete, you ought to mention size of the newer wins. -
Algeria was 300m USD (of which 200m to PFC) and Lithuania was 500m for ex. Only then can one determine whether the order book is OK. And with some delayed procurement contests, the situation may look dire now but fine by end H1 2023..so more balance would be appreciated. Thanks.
Whereas the macros are unkind, the time will come again when consumers desire cheap bikinis at fashionable prices. The shorts would have us believe that retailers face Armageddon but once inflation under control in 23, the recession may be short-lived. Not investment advice.
Flying off the shelves...how do we sell a £1000 worth of perfume for £250? I've no idea...
RBC kept a £6 to £7.50 rating on THG for a year ...if they say 50p or £5,00 doesnt make much difference!
It's clear that there will be no quick taking private unless right deal comes along. He has cited Sports Direct as ex. of a listed firm that got clobbered as the City didn't like him then he proved them wrong and the SP rose 30-fold. That will do nicely.
Beauty has doubled in size since the IPO. Just a question of waiting for the macro economic indicators to improve...
Whey price is falling innit.
I'm a contrarian indicator so prob best sell up? More seriously, i think there's reason in MM's madness. If we get a decent econ recovery and inflation under control in 23, margins will go back up and the strategy of customer retention during this period will look like genius. Whilst cash burn was high, forecast of 500m by year end is a reminder that most of THG's sales and cashflow generated in H2. DYOR etc.
Follow posts here, esp. HOSAI, rock. I've topped up today. Softbank termination expected...their 1 bn USD in May 21 will help to avoid a cash raise in years to come..Ingenuity on track. Whey prices coming down, individual divisions worth 2-3 times sum of parts at a a minimum. Management not impressive in going for growth whilst sacrificing EBITDA but maybe pays off in 12-18 mths? Not investment advice!
THG and SoftBank have terminated a longstanding agreement for the Japanese company to buy a $1.6bn stake in the British ecommerce group’s technology division, cutting off what was intended to be a valuable source of funding for the growing business. Confirming what many analysts and investors had long feared, THG said that “in light of global macroeconomic conditions the option and collaboration agreement has been terminated by mutual agreement among the parties with immediate effect”. The tie-up with a unit of Japanese billionaire Masayoshi Son’s investment vehicle caused great excitement when it was announced in May 2021 as part of a $1bn fundraising that made SoftBank one of the biggest shareholders in Manchester-based THG. It would have given SB Management — the unit of SoftBank that was granted the option — the right to acquire a 19.9 per cent stake in Ingenuity, the technology and logistics platform that powers THG’s health and beauty ecommerce business and provides services to many multinational consumer groups, at a strike price that implied an enterprise value of more than $6bn for the unit. Shares in THG — founded and run by entrepreneur Matt Moulding — rallied immediately after the transaction but those gains evaporated over a summer of negative headlines and growing investor questions about its strategy and governance. The losing streak continued into 2022 despite efforts to improve governance and transparency, as investor sentiment towards technology companies soured and rising raw material and energy costs put pressure on THG’s profit margins. On Tuesday, THG shares were trading at 69p, little changed on the day but almost 90 per cent lower than the 596p at which SoftBank acquired its stake in the group. At £872mn, THG’s entire market value is less than SoftBank had agreed to pay for a fifth of one division of the company. Analysts have cut back their forecasts and target prices for the group while a series of bid approaches, most recently from an investment vehicle employing one of THG’s own non-executives, have come to nothing. THG did not rule out future sales of stakes in Ingenuity or its other businesses. The ecommerce group said the separation of its key trading divisions into discrete legal entities was complete — in line with the 15-month timetable set out last year — providing it with “material optionality and flexibility to enter into future strategic partnerships to generate value accretion”.
Redinjun - your assessment is completely inaccurate..."attacks on ethnic Russians - 14,000 killed since 2014". The war since 2014 killed Ukranians and Russians and was a frozen conflict until Putin escalated it. It would never have been a conflict in the first place had he not armed the insurgents and given them BUKs to shoot down civilian airliners.
Blackrock who dumped THG doubled up on their POLY stake are triple the current SP a few days ago. nice timing Blackrock
Was going to buy some for a quick trade and donate the profits to the Ukrainians who deserve support.
cause if expected imminently as per betaville shorts will close....
Acc. to BETAVILLE, independent chair announcement is forthcoming. As THG announced this in October, it would be a surprise if it wasn't coming by end of Feb!
1) it's fallen 10 days in a row and is grossly undervalued 2) an independent chair 3) ratings agency positivity 4) PE interest 5) whilst the mkt was disappointed the TU excluded strategic update but latter is evidently forthcoming...can one imagine nothing going on behind scenes to address the rot and set out a clear strategy? 6 ) analysts' ratings...most have kept high SP targets & can't ustand mkt cap
The Russians will pay for this invasion....stock mkt down 30%, rouble all time low....
As for THG, the shorters are filth....spending all day criticising the firm...they need to close b4 the new independent chair is announced
I can sleep easily knowing almost all IIs bought at between twice and four times the SP i bought at even if down heavily. Bring on the PE interest and strategic updates!
Amazing how on both LSE and ADVFN there are many posters who bought far higher, sold at a loss, and have now had an epiphany and turned against THG. Luckily LTEs have a horizon beyond holding for 3 days.