Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Have many members on the forum bought products from THG?
Since owning my shares, I’ve become a repeat customer of two THG companies. Look Fantastic and MyProtein.
I’ve spent the last 10+ years doing 90% of my online shopping via Amazon. Since the pandemic, I learned (as have millions of others) that Amazon isn’t the cheapest and the products delivered aren’t packaged well. I now do 50% of my shopping via Amazon. However, l now try to buy directly from the manufacturer as I prefer getting the product from them (better packaging, typically newer stock and better customer service).
I’m pleased with the product quality, cost and delivery from MyProtein and Look Fantastic. I’m hooked on the Whey proteins as I like the flavour offering. Also, watch their Youtube video on how they make their Whey products. I didn't know they have the world's largest production facility (that's what the video states).
Next time you, your partner, kid, family member, etc., want something, try it for yourselves. My mother (age 60) never heard of Look Fantastic (but she now likes the prices), so my critique of THG is to spend more on marketing to the older non-social media demographic. People like my mother spend a fortune on cosmetics. Yes, women like to try before they buy in actual stores, but on repeat purchases, sites like Look Fantastic are amazing for the cost.
The point of my post is that even though the SP might be horrible, the company isn’t, which helps me sleep better.
Curious if others have become THG households as well.
That’s a valid point Goldenyears.
They do have the option to buy back and hold them as treasury shares (vs striking them off), which allows them to be sold again in the open market if liquidity is needed.
It’s just at these SP levels it’s a powerful signal to the market that we’re clearly undervalued.
If I were in charge of the company, I’d certainly buy back at these levels. Yes you can deploy capital for growth in acquisitions, invest in projects etc.., but it also says a lot when a company thinks its shares are too cheap and buys them back.
Given the small float out there and the smell of share price manipulation, I’d want to squash that stench. That’s obviously my view.
In the agenda for the AGM item 20, they are seeking market authority for the company to make purchases of its own shares up to 10% of all ordinary share capital. Sub para C they have worded:
“the maximum price (excluding expenses) which may be paid for an ordinary share shall be the higher of: (i) an amount equal to 105 per cent. of the average of the middle market quotations for an ordinary share as derived from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that ordinary share is purchased; and (ii) the higher of the price of the last independent trade and the highest current independent bid for an ordinary share on the trading venue where the purchase is carried out;”
Interesting as this could path the way to a take private (helping a group hit the 75% threshold).
Also can help us LTHs now that the company can use its own capital to acquire that small float of shares, which in my opinion cause so much volatility in the share price.
Any thoughts?
Simply Wallstreet uses a 10-year DCF (Discounted Cash Flow). They use consensus estimates for Free Cash Flow up to 2024 and then approximate the remaining 7 years using their growth figures.
For example, Barclays and JP Morgan do their valuation for THG using a SOTP (Sum of the parts valuation) based on EV/Sales multiples.
Valuations can be based on many methodologies (e.g. DCF, LBO, Comps, Precedent transactions). In the case of THG you wouldn’t solely rely on a DCF valuation, you’d use comps that use valuation metrics such as EV/EBITDA, EV/Sales, etc.
My take is it hints at something, which I take as a positive.
To be clear, THG said nothing that gives a clear indication of anything on the call. But the way he said it, "which probably leads in well to Steve covering off on the SoftBank transaction," sounded to me like there was something to elaborate on before MM jumped in.
I bring this up because of a recent note (5 November) from JP Morgan that said SoftBank was unlikely to trigger its option due to the slump in share price. Now, this is just an opinion from an outside party and JPM clearly state it was only their view.
Again I don't know anything, but I was curious if others had a reaction to that bit from the webcast?
This is my first post on the forum. I'm long THG and I usually like to read what people post. However, yesterday’s update webcast urged me to seek feedback from others.
During the Q4 Trading Update, the analyst from Barclays (Andrew Ross) asked a question on corporate actions (time marker 13:15); there was a part in the response given by Matt Rothwell (Deputy CFO) that got my attention. Please see my outtake below of the segment (better to listen to the actual webcast).
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Andrew Ross (Barclays): 13:15 - "Then the third one, I appreciate this is just a trading statement, but I wonder if there's any update on the more structural stuff...legal separation...SoftBank relationship…listing of Beauty etc."
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MM (Matthew Moulding): 17:40 - "And then Matt (Matt Rothwell) do you want to quickly pick up on the exceptional picture."
Matt Rothwell: 17:43 - "Yeah the guidance is unchanged from Q3, so we guided at Q3 to around the £60mn mark reflective to the incremental cost of the separation workstream, which continues to progress ahead of the full (or fall) timetable we outlined, which probably leads in well to Steve (Steve Whitehead, Group Commercial Director) covering off on the SoftBank transaction."
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MM: 18:01 - "On the separation side of things, Andrew, look, this is a trade update, so we're not intending to update on any of those things. Safe to say though, we are very busy away in the background working on all the key projects that we've outlined…and we’ll update the market in due course…"
Please note, I'm not trying to imply anything material from this (the SoftBank option agreement is old news from May), but I’m curious to know what other's think?
Please excuse the sloppy attempt transcribing and any typos/errors made. I advise people to listen to the actual trading call rather than rely on my notes. It's easy to take things out of context solely by reading the bits I typed out.
Webcast link is on THG's site https://www.thg.com/results-reports-and-presentations/