George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
******2 Brexit
Dear all, hello, this is MM's Mum here. You leave my boy alone Fordy and Kalla. Time to get a GF chaps.
TED, ASOS, BOO either all at or near all time lows. Investors are short-sighted...inflation due to the CV recovery bounce won't last forever.
It's astonishing people think they can influence the sp of a 1.6 billion cap firm by posting bile on an anonymous BB.
His properties he acquired for free in lieu of shares granted to him by THG. So in effect, he transferred the properties to himself. Dodgy geezer. I'll be glad to get say a £4 bid and be out by Monday.
I would favour a low-ball bid that THG turns down. That way value would immediately reinflate and pull in rival bidders.
Kallu. You will get a bit of karma when the PE bid comes in. Watch this space.
Short-term, we have a tech SP crash (look at yday in the US), plus retailers online offline facing big inflation fears. Look at ASOS, BOO, TED, SDRY , all SPs have crashed. Medium term, with Ingenuity doing well and margins back as inflation in Whey won't last forever, we are onto a winner. At least that's what MM's Mum told me?
Your son deserved the 800m, provided he helps me get back to breakeven price and we recover the several billion investors have lost so far.
In my view, some big shorters were feeding the press negative stories as one was even quoted in the FT....and they got sight of the various analysts' notes + the II topping up and checking their investment case and seeing it unchanged and said they cant push this any lower
What a relief. Going down 10-15p was becoming a bit much...
Thanks - confirms what we thought. THG is a bargain at these levels, the fundamentals are sound, and the whispering campaign consists of shorters and detractors in the media but ignores the fundamentals .
As beauty is worth 1-2 billion quid, bizarre the whole business including 500-odd m cash priced at 1.5 bn, esp with the RBC conviction buy based on Ingenuity being in for free.
The Analyst said £2.65 and when it hit £1.70 withdrew their short rec on the basis that nutrition and beauty were under-valued. True whey prices have surged pressuring nutrition margins but ingenuity ahead of expectations ....so £1.20 a joke
RBC Capital Markets upgraded THG on Tuesday, arguing that it saw "fundamental value" in the shares.
Shares in the e-commerce specialist, formerly The Hut Group, have lost 40% so far this year, and are now down more than 80% over the last 12 months.
THG specialises in selling beauty and nutrition products as well as providing e-commerce services for other companies. But the stock has suffered as investors questioned its corporate governance, strategic technology and the valuation of its core business, THG Ingenuity.
The firm also warned last week that it would miss full-year profits guidance following fluctuations in forex and commodity prices.
But in a note published on Tuesday, RBC said: "Amid the controversy around THG, we see fundamental value in the shares. Our analysis of Ingenuity's potential suggests SoftBank's valuation might indeed be reasonable, rather than fair-fetched.
"With the shares down a further 60% in the last three months, top line earnings expectations reset and catalysts ahead, we see risks skewed to the upside from here." RBC upped its rating to 'outperform' from 'sector perform'. It left its price target unchanged at 500p. As at 1200 GMT, shares in THG were ahead 3% at 124.55p. In May 2021, THG struck a $2.3bn deal with Japanese conglomerate Softbank. Under the terms of the deal, Ingenuity will be spun into a separate company with Softbank having the option to acquire a 19.9% stake for $1.6bn, which values the unit at around $6.3bn.
A number of analysts and investors have since challenged that valuation, however, with some sceptical the deal will complete. RBC said: "We sympathise with the challenge in valuing Ingenuity. Indeed, it is what previously kept us on the sidelines. "However, its momentum in the 2021 full year - we believe its site order book more than doubled - and improved disclosure have been overlooked. "We project that Ingenuity Commerce could increase tenfold to £0.5bn of revenue in five years, with at an EBITDA margin of around 60%, drives our discounted cashflow valuation for the segment of £4.4bn. Yet the market is attributing no value at all." RBC added that it did not expect Softbank to walk away. It also pointed to "notable steps" THG had taken to improve its structure, including the removal of chair and chief executive Matthew Moulding's special share rights and a commitment to split his roles.
MM has ticked off and dealt with various criticisms on governance, structure, roles. Security pledge against shares, paid off loan to Warrington Council, golden share abandoned. Eventually, THG will have done ething asked of it by the market.
The risk shorters run is a left-field RNS with a strategic update, as opposed to the TU. This could come at any time as clear in Q4 results they are working v hard on strategic RNS (new chair, FTSE listing, Softbank update, spin-offs)?
I think MM will be gone before long....let's hope he is replaced by sbdy reliable like his Mum
so a 13m downgrade from CITI knocks off a couple of hundred m of the mkt cap. Despite global inflation and FX being the main reasons? Logical?
I cant believe this is down so much. I need a whisky and protein shake.
For a start, not only a new independent chair but also when we join FTSE every tracker in this fair land will have to purchase THG