RE: Not giving up my stock3 Feb 2022 12:03
@Jtan
For the sake of discussion, I firmly believe that THG is a great, undervalued business with a strong management team from what I see, despite what some people say here and in the media.
Matt Moulding is a family man who believes in hard work and good rewards for his team. He is loyal. His family is strong. He has always demonstrated a great work ethic and business evolution and growth. He is strongly patriotic towards the UK, supporting Brexit and wanting to launch on the FTSE rather than the US due to his patriotism mainly. He has a disabled child, and he donates significantly to charity. THG are investing in environmental activities https://moretrees.eco/partner/thgpc/. They have bought a plastics recycling plant to vertically integrate plastics recycling and reduce costs to help their local businesses. He gets up at 5am daily to work out before his day starts highlighting his focus, dedication and personal drive.
And yet, all we see in the media is a negative campaign suggesting he is a drinking, holidaying partygoer. He went from darling to disaster, just before the IPO Investor lockup ended, where savvy major investors would have known than Black Rock would start selling their stock to take profit from their >10year investment in THG. With the relative small free float, it meant that shorting and trading the stock would be quite easy, forcing quicker sells from investors and funds which have rules around stop losses on stocks to prevent issues in the pension funds etc. And with a few "journalists" in the media who are clearly fed stories to publish at 00:00 every Sunday morning (e.g. the Times regular stories), it was easy to scare private investors into pushing the price down. Major investors and funds have been selling. Now they are out of stock and the time for buying is about now. https://www.morningstar.com/stocks/xlon/thg/ownership
THG has been growing massively since 2014, from £248m revenue in 2014 to £2.2bn this year, with forecast of 22-25% growth in 2022. THG have been investing in revenue growth and cost reductions over the last year. They invested in Autostore being installed in their UK warehouse during 2021. https://www.youtube.com/watch?v=iHC9ec591lI They invested £1bn in global logistics improvement in the last year. They bought 3 planes to reduce their airfreight costs. Over the years, they vertically integrated things like makeup manufacturing, protein powder/vitamin manufacturing to reduce costs. They bought a hosting business to host their customer websites https://www.thghosting.com. They invested £850m in 2020 in developing their IT systems and creating Ingenuity. EBITDA of 7.3% is expected to grow over the next couple of years.
THG is a long term growth stock, and those who have researched the company know this well and will not be scared off by institutions trying to cash in at the expense of Private Investors.
GLA
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