Member Info for Mando_

@Pokerchips

Agree. THG would make Investors far happier if they put out an RNS delaying splitting out the THG Beauty and Ingenuity. Matt has just lost about £0.5bn in this share price drop. I'm sure he doesn't want that... It's in his interest as main shareholder to start ramping the stock again soon

* ...BlackRock to be released from their huge investment "lock-up agreement" in starting rapid expansion

This was pre-agreed that they would not be allowed to sell shares post IPO until 16th September as part of the IPO offering. It was in the interest of other companies looking to buy into THG to create FUD to bring the price of the company down, reducing BlackRock's profit and making buying into the company cheaper.

BlackRock would never have wanted to hold such a large investment in the company long term. They invested to grow the business and take advantage of selling out when they saw fit following IPO. They intend to continue to invest and support the business and continue to hold shares as they advised yesterday. They just want to reduce their position, as per their normal business practice. Other institutions and investment funds have been buying up those shares in bulk from panicking retail investors and blackrock as the price declined.

Hi Mr Chouhdry, I don't think this business is at any risk at all of going bust. Sales have been extremely strong, growth is incredible. There has been a lot of FUD (Fear, Uncertainty, Doubt) created in the media from around 16th September which was the scheduled date for BlackRock to be released from their huge investment in starting rapid expansion for the company. They would have always planned to sell off their stake in order to recoup their investment.

THG - What we achieved in 2020
£1.6bn GROUP REVENUE +42% YOY
£151m ADJUSTED EBITDA +35% YOY
89 THG INGENUITY POWERED GLOBAL E-COMMERCE SITES +155 (0.43%)
£10m+ COMMITED TO CHARITABLE CAUSES
1,000+ BEAUTY BRAND PARTNERSHIPS
3,000+ NEW JOBS CREATED

Clear flat bottom descending wedge since the 12pm 1.2m unit trade at 192.4, and now trading flat.
Looking for a catalyst and hoping for a bullish upward trend pattern to form.
Hopefully I'm not speaking too soon but selling pressure seems to have slowed. I think few people own the stock lower than this and it seems BlackRock are holding firm on their sell price hopefully.

Now watch it jump

@harrizma
Thanks, actually that makes sense.
People paid to put down stocks so retail investors sell off at losses and institutions make the money on the way back up

lol ok.
I think people are ignoring your views anyway

@nuri, why are you here? Clearly you are a short seller, hoping the price drops below thresh-holds. You pop up, every time we near a bottom. I've seen you do it on other stocks such as CMCX. Do you work for an instituational invester, with a goal to drive down pricing of stocks they want to buy.
If I am in a stock that I don't like, I tend to give my view, and say goodbye to the message board.
I don't get why you stay on a stock you don't like to "helpfully warn people of a continued decline". You either work for a company wanting to buy at a lower price, or you just enjoy putting fear into people.
If you have clear methods of reasoning, back it up with numbers and facts.
I may be wrong in my analysis of stocks, but I generally tend try to be clear as to why with data. Otherwise you're just spamming the board.
As with all investments, yes there are risks, and the share could possibly drop a lot further, but personally I just don't see why when you look at all the data, the company and the future expectations of driving rolling this business out on a global scale.

Last time I trade on a broker rating. Bought £2,500 19th August. Was up 4% within days, and then a continual decline to -14% now.
Dropped to a possible support line now, so I'm in two minds to either cut my losses or buy more.

Gone from a nice positive to a bad negative. Luckily only on a small amount.

Blackrock held 143m shares and reduced down to 134m, and have continued to reduce their whale position since their lock-up agreement ended. As shown in this RNS.
https://www.lse.co.uk/rns/THG/tr-1-notification-of-major-holdings-sbvtxdc6ajka6xs.html

Blackrock according to morningstar still hold at least 83.5m shares across 4 funds.
https://www.morningstar.com/stocks/xlon/thg/ownership

So 134m - 83.5m means they have already sold of 51.5m shares. We don't know if this is part of that 55-58m as reported in the press...

Also look at the Morningstar report on the buys and sells. Institutions have been building their positions as private investors have been dumping stock due to the FUD created in the media, kicking in stop losses and a downward spiral, enabling these other major investors to buy cheaper and cheaper. Institutions have been buying, more than selling, so private investors like many of us here on this board, have been smacked on the way down, whilst major institutions with loads of free capital have just been buying up stocks...

@Biggsy - Absolutely.
Not having a dig. I'm watching the charts carefully myself. This could rocket for sure and my gut feel is it will. Nice volumes continuing to trade on the way up is a very good sign.

@LB21 - no, it's not that bad. If anything it's good.
It's seemingly common that the market makers create FUD - Fear, Uncertainty and Doubt just prior to the end of a Lock-up period. Look at DARKTRACE. It got a half price investor rating just before the end of the major whale investor period. This means that when whale investors are about to sell down their positions they held from pre-IPO, new investors can buy that stock at a discounted price.

Look at the wording of the media on THG. The "share price fell after an investor update day", which may be true that the share price fell after that day, but they made out it was due to investors being unhappy about the business, but actually the dates just aligned with the THG Lock-up for BlackRock, where from the 16th September, Blackrock wanted to reduce down it's huge holdings in the company to gain profits - as investors do. Now they are just reducing down their positions to release capital for new investment opportunities they see. Normal practice for whale investors.

@Biggsy - Agree, but someone also sold 11m shares yesterday.
I bought a little this morning. I just recommend people are careful on this one. Trading volumes are still relatively low compared to e.g. 25th/26th October, 17th September.
Personally I'm long DARK, but this may not be the bottom yet. Look at THG and AWE following their lock-up periods ending.

people should also look at the chart patterns.
14th-20th September - drop 18%
to 22nd - increase 8%
to 5th October - drop 30%
to 7th - increase 17%
to 13th - drop 45%
to 18th - increase 45% (remember a 45% growth from a lower number is not the same as a 45% drop from a higher number)
to today - drop 48%
next few days - 40% increase ???

and anyone who knows the market and read the documentation on the IPO, would have known that major investors were allowed to start selling down their positions from 16th September after a lock-in period. This is the reason for the share decline.

For people who are worried now, they should go back to the company websites. What do you think of them. Would you buy from them? Look at the prospectus. Re-read the latest RNS from the company on their update.
BlackRock are just reducing down from a crazy high position which was to get THG off the ground. It's like when CathyWood reduces her positions on Tesla, the market goes wild, but normally it's just because her other shares have dropped too far and Tesla may have become to big a % of her portfolio as a result according to her business guidelines. It's not about not having faith in this company.

@nuri, sorry, but have you looked at the THG's website, their prospectus, their financials at all? This is all about mugging off retail investors to make more profit for the money makers.
This is a business with 1.6bn revenue, a new but quite clear and solid business model, global logistics, brands, and a solution to white label websites with logistics for new cool brands. Growth was 41% in 2020. They have hired a new non-exec director to the board from softbank so they can ensure their investment is secure. These major investors don't want to walk away. This is about pushing out those who can't afford losses on their books in the short term - retail investors. If people can hold their nerve through this period, they should prevail. Maybe not in this next week, but maybe pre-xmas this stock should be at least 220p minimum

BlackRock wants to keep 28.5m shares.
They don't want to sell below 195. Nor will any institutional investors who have already bought.
This is going to be twitchy bum time for a while I think...

Small investors, like me, may panic and sell off. You have to make your own choice. I'm in two minds myself about losing a small fortune, like 3 months salary, to avoid further losses, or waiting though an initial retail panic sell period and wait for an up-tick in the money maker markets.
No one really wants to sell below 195, not even BlackRock. They know it doesn't make sense...