Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Bean Counting, you can’t count beans. The dividend is the same as always and the words around are the same, cash is sustained paying the dividend and the share buy backs. Waste time trying to find negatives or sell up go somewhere else where you can try to re-write or invent non factuals (Your weird, what are your motives to all the negative spinning I wonder).
Maybe there are large differences between oil vs gas wells mix and the way they are retired. Maybe there are tax breaks for smaller companies different to a company the size of DEC. The key question is does DEC hold a lot of tangible value from assets plus cash over debt. They seem very confident and have paid double figure dividends for years now. Let’s what’s in the updates and the next set of accounts. I’m still bullish at less than £10.
We have our trading update tomorrow that likely to be very positive and contradict the Shorters who are hitting DEC with everything they got as a large liquidity company vulnerable to Shorters. The SP has lost more than 100% with no tragedies but a lot of bad press. We could see a lot of positions closing soon unless some unforeseen bad news is pending despite DEC saying all is good in the wheel house. I e taken a gamble and topped up for the low SP and dividend yield.
similar to the future of bats and imb touring vapes will replace ***s. i guess all will adapt to a send back your empties for refills or similar. there will be a phasing in period so inventory can be used and also customs and police need to clamp down on the illegal stuff effectively. i think bigger picture this lowly sp is a good price point to buy in a well run company.
Blaming the weather amongst other things, same weather Next, M&S etc etc have managed to achieve excellent results in. Sold all their Asia IP which has delayed them going under. Once quite exciting and cool but that’s yesterdays story not tomorrows. Probably will end up in corner of Next or one of the Sports Direct group concessions after being brought out from the administrators. Nothing here for regular shareholders to invest in sadly.
There will be no details on trustworthy transparent progress regarding cash generation until we see the small print in the final results. Remember as Charlie Monger often said EBITDA is another name for BS Earnings. It’s only EPS, net profit and net cash (not cash including approved borrowings) that really matter and demonstrate true value. On every front we are failing and revenue which creates the profit opportunities is down on all divisions. It’s totally lame / desperate upselling trying to compare revenue to years before to show top line growth also. All the big early promises from MM have not come through, his investor relations totally suck and until things change expect to be in a trading range with further falls if revenue and bottom line reduce further. So now we in a space of likely no updates the shorters can spin MM’s failures and make money. If MM managed II relations and actually increased EPS and generated cash they wouldn’t have any ammunition at all. So current market cap of £850m without increasing net profit (PAT) or increasing net cash could be argued to be fair value. The nay sayers have put slapped MM in the face put their gauntlet on the ground and right now he isn’t picking it up nor winning any duels - More patience needed, will go one way or the other, the FY results and forward earnings etc will move the needle, not much else…….Im personally big and long & very disappointed + angry……
Not on the “Success story” bandwagon at all, not true. THG is an anomaly of small businesses that MM overpaid for that have not met expectations. The city quite correctly don’t believe his hype and don’t trust him at all. Companies like SoftBank got out at an enormous loss. MM needs to generate real cash consistently, finish writing off the acquisitions delta’s to true value, have a more independent BOD and ideally retire and sell off a large stake of his holdings. Only then can value be released and a bid possible I think. At least II’s would take another look at THG.
Lots of companies do well on LSE like M&S, Next, Tesco etc generally. THG is different to them because CEO’s don’t own their real estate and rent it out to their own entities. Their accounts are 100% transparent and their cash on hand is real (not rolled into equivalent cash which means in used borrowing facilities). They have track records of good governance and answer any question at their share holders meeting, they have truly independent renown trusted BOD members. THG is MM’s private project with little regard and indeed sustain for shareholders, yes he has made progress in the right direction kicking and screaming as he does but it’s not enough - He needs to reduce his holding to c. 10% sell the freeholds back to THG, increase his board to truly independent directors (not his mates) He could do a lot worse than getting a Kelso executive on his board even as a non executive. So until he gets serious about this and his responsibilities to all of us that own a little piece of THG this share will go no where unless it’s broken up or sold is where my heads sadly at now.
I wish the update was clearer in some areas. Shares still evaluating the premium listing but that’s all under change by the LSE. Be nice to know their thoughts or conclusions on it (Y/N and when if Y) Then the cash available £600M includes their bank lending facility, why not share net cash figure. Anyway the April results will have all the answers - I hope the results details and the updated forward guidance in it has some more good news and we get a coinciding rising market to get us to 90p or more again. THG seems so unloved by the City and fair value feels more like a 100p in these markets and maybe double in frothy market. Yet more patience required……………GLA
DEC is very highly leveraged and as such the current dividends do not look sustainable. I’m sure they will halved or similar. Having said that I think they will will be north of 10% from the recent sale etc, so still a good punt.
I’m sure it will get an upwards re-rating once absorbed can take time and many II’s will want to carefully scrub all the numbers in the year end just in case some nasty surprises in the accounts small print. I’m sure it’s all going to be really good and just needs more time and patience to get ones just rewards as investors here.
I agree smooth operator, the update is short but very sweet. All good at the helm. Clearly the sell off from c.300p was clearly an overreaction and frankly misunderstood if one read it carefully. I expect CAB to be the highest SP riser on the top risers board today - Let’s see eh, GLA fellow Investors today and in the future 🥳😊
How much of ingenuity is internal THG driven revenue & profit versus genuine external ? No new Whales since Estee Lauda USA unless I’m missing something. Nutrition the flagship division’s numbers are disappointing to me anyway. At least no bombs going off. I would think an uplift back to around 75 to 80p will be the next settling price point - Let’s see Good Luck fellow THG investors. (Still hoping for an aggressive takeover bidder or MM with QAI to offer 200p per share so I can move on to something less stressful as an investment).
Should be back 40p in normal markets but these are not normal markets. I feel realistically per the unloved LSE that should see a rating of 15p or so and trading between 12 to 15p after updates but my sense is don’t count it - Let’s see. Could be vulnerable to an M&A like Domino EU recently which of course will the SP up to figure closer to fair value. GLA.
Retailer Boohoo has been found to have mislabelled items of clothing made in South Asia as "Made in the UK", according to a BBC investigation. A Panorama investigation found the company removed the original labels on T-shirts and hoodies at the retailer's controversial factory at Thurmaston Lane in Leicester between January and October last year. A spokesperson from Boohoo told the BBC the mislabelling was an "isolated incident" and a result of "human error". "We have taken steps to ensure this does not happen again." Boohoo is considering closing its Leicester factory and relocating operations. The company said less than 100 employees at the Thurmaston Lane factory may be impacted by the closure and it expects "some roles will be relocated". The clothing retailer said the plans to shut the site were not related to the findings of the Panorama investigation, adding that due to "significant investments" at its Sheffield and US distribution centres, it must take steps to ensure it is a "more efficient, productive and strengthened business".
The T/O is all noise, MM wouldn’t open the books to due diligence and if he had it would have been obvious the acquisitions are all over valued on the books and Ingenuity’s customers are nearly all THG held. MM holds all the property freeholds as well. MM needs to step aside and let a new team run THG who is interested in releasing shareholder value which I suspect is nearer to 200p than 500p float price. Problem is how do we get him to sell up and go. People say he’s good as business start ups but truth is he conned and oversold what is company a long was a way from a profit after tax. I’m very heavily invested in THG but pretty sick of MM and his arrogance and antics now. (Time for a change at the helm).
Another very smart move from Sandy and team that creates capacity for their existing protein products and adds to the portfolio. This share will back over 200p as soon as UK markets get normalized and great companies trade on their appropriate forward P/E ratios. 😊