RE: Moving Up13 Nov 2022 12:36
I am relatively recent investor so from my perspective, when i first bought, most people i knew were saying it's a fraud / smoke and mirrors, what big brands are there bar Nestle who have been a long time. The numbers are opaque , don't trust MM etc.
The in no particular order these other things happened
Lord Allen joined to help sort out Governance and help with strategy
The bid thing happened. that was dismissed by Shareholders and advisors as significantly undervaluing the company.
The half year results missed and key items were not done, importantly the numbers against each separate division.
Analysts , panned the company and change from SOTP to DCF or a hybrid. The times in particular are some terrible stories including calling it the shed, referencing Quindell in the minds of anyone who knows about them. A particularly low piece of reporting.
Broker targets fell to 39/45/50 with a couple higher.
Then L Allen bought at 86 p, and MM at 71p the SP went down and down
Jupiter was a distressed seller by the looks of things and perhaps Chrysalis, Softbank was and still is in dire straits, they pulled out of the deal for ingenuity because they had to. and it was know that they would likely sell their stake in THG
The SP went down and down. as the SP went down, the bad press continued,
L Allen doubles down, with another 1,250,000 at 41p the day after the interims, when announced to the market that trade was already 10% ish down ,
Sept 29th
10th Oct the SP closes at 32p
SW buys 5 million at 39p
Softbank sell out at 39p
QIA and MM buy them
Then we had the trading Update that looked not too bad
The Big Brands are coming to fruition, Iceland UK based launch in the new year a 3 year partnership before launch referenced as big surprise to the industry, and now Heinz who in the UK doesn't know Heinz,
The global guy from Nestle was key speaker at the recent conference alongside a Guru who’s name escapes me...
SP rises as we know.
Personally I think L Allen at 86p thought this was perhaps the biggest bargain he had come across for along time, he had been in post for 3 months and put in a million quid unheard of IMO and then doubled down. Huge vote of confidence.
I think the narrative will change gradually, Analysts will start to give more credit to the investment and the infrastructure and SOTP will start to be taken into account again.
Heinz don't give their brand to a company that has limited capability or questionable capability they just don't.
I am very bullish as you can see.
All IMO of course
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