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Let me correct you:
“a tight circle of insiders, all of whom would have had to sign NDAs”
Also have no idea why you state “I do not think anyone on here is suggesting THG is a leaky ship” - pretty sure this has been suggested at least twice today by Manc39.
Also worth pointing out that THG’s special situation has been ongoing for years now, and that many buyers are fatigued. The boy that cried wolf comes to mind.
Anyway, each to their own. As a non-leveraged LTH the share price doesn’t actually make much difference to me and I very much believe in the company (and by extension Matt) so all good. How many of us have created a multi-billion company in 18 years?
Let’s just be clear here. THG is not as leaky a ship as everyone makes out. They have had many offers from PE, the majority have not been disclosed (per MM) and have evidently not led to spikes in the share price. The two/three that have been disclosed were factually/ostentatiously as a result of regulatory requirements (not so sure about Apollo but let’s give everyone the benefit of the doubt) and DID result in a spike in the share price.
The assertion that “the market would know” is garbage IMO.
How many companies pop >50% on news of a takeover? Why would THG be any different from these companies? Is there something distinctly Mancunian about not being able to keep a secret?
“ A house of cards. Is THG heading for the Gurgler?”
Not this rubbish again. Anyone happens to be concerned about this, a load of bankers lent THG an additional £156m on covenant light terms late last year. Pretty sure they will have performed a very thorough risk assessment before committing to the additional funding on covenant light terms…
Well it looks like Qube are taking c. 10 business days to reduce each 0.10% using their current tactics which don’t seem to be moving the SP much (presume they are reducing each and every day via building an offsetting long position). Danger-extrapolation means they’ll still have >0.5% on or around the September update. I wonder whether they’ll change tack as we get closer to results…
Just read this, was interesting: https://www.proactiveinvestors.co.uk/companies/news/81/idiots-guide-to-the-london-stock-exchanges-setsmm-0379.html
Anyone know how accurate/simplified this is? I presume THG trades via SETSmm?
Thanks in advance!
Hopefully that is after recharge of distribution costs to Ingenuity on which there should now be a margin => at worst will still be slightly margin accretive to the group. Potentially also a good way in with customers to expand complimentary services (e.g. manufacture/development/branding/marketing/etc.)
THG Labs provides manufacturing for certain THG own brand + white label products. Also involved in product development of course. Would be great to see this expand further over time.
Thanks Rock8
Might be naivety on my part but this just feels like vertical integration - one of the main reasons I invested many moons ago.
Cut out the middle man, retain margins, take control. What’s not to like?
Much respect to you B1nky for such a humble post.
Happy to say I have no problem “dreaming a little bigger”. It was “valued” (wrong word because the stock market is NOT efficient) at 800p in the past, nothing to stop it being valued at 800p in the future.
The amount one might pay for a non-controlling stake is nothing like what one might pay for a controlling stake. With control comes SOTP (if you are that way inclined). MM wouldn’t want this, PE would love to get it, there is much interest in THG (MM states multiple PE enquiries and I wholeheartedly believe him).
Let’s dream a little bigger.