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Rs - I have read it 3 times and I am still not sure it’s that negative to be honest problem is you can read it both ways!
Agree not a great read! - Just optimistically hoping that as the sp is currently in the toilet it won’t drop too much!
Problem is because so few shares it doesn’t take much to tank it.
Have a look at the rest of the market this week it’s absolute carnage. You simply can’t single out Thg as if everything else was going swimmingly. With the exception of mainly oil investors most portfolios are currently in the toilet.
Currently great or good results are simply drowned out by the macro economic noise which is why you have a spike on results then a fall back. We need to forget 20222 I just don’t see upside on most consumer facing stocks until 2023. Dyor
Can’t shift the sp - I simply don’t see any pe offer currently coming anywhere near where MM believes it’s value to be.
My guess would be at least around £5. Why would anyone pay that with current sp at around £1.
Secondly take any basket of retail and growth stocks at the moment and try find any that’s doing well irrespective of performance. This is a LTH that will only trend up on good news on inflation and this silly war. Dyor.
Dear all this share can’t defy gravity - Yes the results were pretty good and in the longer term this will be reflected in the sp.
This year you can honestly write off as the market has a significant downer on any retail or growth stocks both of which apply to THG.
You will not make significant gains this year so I would prepare yourselves for 2023 if you want to make real money. DYOR
I agree I think the results under the current climate are impressive but we don’t operate in a vacume the whole market is on a down trend with a few exceptions that tend to do well in a crisis.
Blaming THG or MM or saying this business is rubbish is just showing investment immaturity.
Patience will be rewarded In my view but you can write off upside in 2022. Dyor
Profit sanity - absolutely if this was a mature business rather than a fairly early stage growth company.
Let’s just apply a little common sense if the THG announced a focus on profit down playing investment they would be crucified as short sighted. If you want profit now don’t invest here.
The numbers look good by most logical set standards but at the moment the market is irrational so it really could go either way today but I am not expecting any mega bounce short term. Dyor
I don’t wish to burst any optimism but just to manage expectations.
I have a fair chunk of THG but short of them announcing a doubling of sales and moving into profit I don’t think we will see a big rise. If you look at all the retail and indeed growth stocks the sp are all in the toilet.
If we can move above the £1 I will be encouraged. Dyor
Hi Funinvestor yes all of your points could happen but a lot of respected funds have big money commitments here so I think it’s unlikely they would let it sink but in investing you never know;)
Actually Funinvestor I did and am prepared to share my take -
1 I would be surprised if they have to settle at full amount as if it did force a collapse they won’t get anything.
2 Cine is heavily in debt to an extent that owing this much is actually a safety net
The movie slate looks fantastic and will drive huge cash flow so am positive but just wanted others perspective Dyor.
Hi all I have just bought a decent chunk of these I would appreciate some views on the above risk IF they have to settle fully with Cineplex.
Thanks
Hi Latpulldown - Do you mean Joules is a sitting duck for m&a? If so if anything like the 200m for Ted it will be a Mickey Mouse premium for a vastly undervalued stock.
The current price is being battered by a combination of inflation and war worries which has added to the pressure the sp was already under. Even so when I look at the growth plus importantly the cash position I see this as a safe bet long term.
But I would urge everyone (including me) ;) to be patient checking every five minutes every day will not drive up the sp by will alone we just need to get all this macro stuff behind us and then get some good news on results. Dyor
Dear all have a look at the stock market at the moment it’s all down the pan with the exception of a few sector specific stocks.
Expecting MM or anyone else to do anything at the moment is a waste of time. Inflation and Vlad the Mad Putin.
Retail stocks are hit particularly hard just look at NEXT so I think best switch off until this all calms down which although hard to believe it will at some point. Gla.
mrsimmonds - If your genuine?? then your obsession with FCF is a complete red herring it is a company in a growth phase not a mature business so trying to value it on an FCF basis is not going to work that’s investing basics.
I can think of any number of great companies that generate loads of FCF so if that floats your investment boat then THG isn’t even worth you commenting on.