Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Hardboy - If I’m in cloud cuckoo land per your comment on my post. Do you mean my rangebound comment is too high or too low must admit in hindsight I would adjust my range bound to 45p to 55p for the next year. If the current contracts do show a huge cash uplift from profits and payments then it could go higher. This is sold as great technology, revenue increasing but from a bottom line perspective it’s unproven - There is certainly no room for any banana skin slips on a P/E greater than a 1000. There we very good at up selling all the prospects ahead of the 50p cash raising. Own the share can be purchased for lower and could well drop further. I brought at 43p sold at 58p. Got it on my watch list. But won’t be 50p or higher if I do decide to have a VIX style dabble.
The Apollo 170p bid wasn’t an all cash offer. MM wouldn’t allow them to do due diligence (I think I can why now). Ingenuity is an expensive failure, it’s serves other THG entities and the nearly bankrupt Matalan. Beauty revenue crashing, they say lipstick never ceases in times of recession well it does and is for THG. There is no way THG will make up their annual revenue forecasts in H2 so those results will cause a sell off. Only bright spot is Nutrition and a better ebit due to whey price drops. Then MM owns all free holds privately to all of THG units (They are not THG assets). If we get a 150p bid we would be lucky. That’s all I can see in the way of possible get out without a loss. But MM will use his property ownership to what selfish end I wonder.
There will be no dividends at all. Need as much cash as possible to reduce cost of debt and banking covenants. Got themselves in a hell of mess.
Your correct Licker, looks like they destocked what they need to drive EBIT. They want to run down inventory to free up cash (They're running on loans and credit lines bottom line). I think Beuty is looking market share and Ingenuity all puffed up. Nutrition downs brilliant. I’m very disappointed in the lack of clarity and feel my only hope now is Apollo come back with a 170p all cash offer this time, not some protracted complicated deal. I wonder if there are a lot of dodgy dealing between the 3 businesses that if stripped naked under due diligence would make any buyer run a mile. Really need to see a whale or two sign up with infinity and Beauty “return to growth” figures not words. I don’t think they the revenue promise will be met for an instant and this is typical of the false guidance and credibility that’s becoming all to frequent from MM. I think it’s time he went now, I’m worried that he is the free holder not THG of nearly all its real estate (It’s a default golden share effectively). He will need to sell that to any buyer and that can be weighted to his pocket rather than shareholders enabling him to pocket millions at the cost of shareholders. Hope I’m over thinking this and completely wrong……
I’m in deep and long at 77p ave. The only bad case scenario’s that might happen but don’t think they will (trying to think bottom up worst case possibilities) are: Revenue could be below forecasts up to 10% (caveat I think profit is way more important and with Whey lower and some restructurings helping on repeat costs plus a bit from non core sell offs) If we don’t see EBIT uplifts that will knock us of 10p or so and be the worst thing that could happen).
If all 3 divisions are tracking towards break even and on course regarding bottom line and like for likes we could see a 20p to 30p uplift today. The only other worry is if they do more fair value write downs on historic acquisitions - This will knock us down and leave some uncertainty again as that should have all been done in the last results. (On a positive note it’s paper money not cash and it might look too brutal per the EBIT which could then be seen as a tactic to suppress the SP to then line up a 200p low ball take out by MM probably supported by his QAI buddies). For me personally this would be really great but I would feel badly for all the 500p float buyers and those that purchased at up to 800p etc per historic highs. (If MM did table say a 200p cash bid, there could well be another party come in and bid higher and the fun begins). I do think patient holders are going to be really well rewarded but can’t put a timescale on it of course (If was forced to timescale it I would say within next 12 months keching). GLA LT holders and those who were brave enough to double down like me in the firm belief an M&A is likely and makes this a 200p SP within 12 months (Hopefully next week 🤪). I know “Hope” belongs in Churches” I hear you say….
Hardboy - Data is showing me to be lot more correct than you pal.
Revenue is nothing without bottom line profit sooner or later. Look at THG, investors thought it would very profitable very quickly was 800p now less than 100p. I might be deluded, my fair value estimates way above current SP might be too high. (Old adage “Revenue is vanity, profit is sanity”. Can the revenue create a really good bottom line, I hope so. But I will be doing is looking at the cash burn vs the bottom line and the EPS. Not emotionally ramping what are very good RNS’s but till it passes break even it jam tomorrow, when does it’s jam on the bread. The MM’s are doing their best to keep the SP at 50p to match the cash raising whilst they wait for the next results (Note the nasty spread).
People don’t like them, also refill vapes are probably better environmentally anyway. I’m wondering if the warehouse is on fire or something. This is 200p SP in a rational market all day long 🤨
Forget your charts. The results next week will send the SP or down not your chart patterns. Charts are OK when results are not imminently pending here and there. Holistically an undervalued well run builder with good dividend yields. Long term hold
The idiots are the people that buy stock, lose money for 5 years in a row and think if they ramp on a BB it will make difference. The SP speaks facts, idiots lose money. BTW Ask yourself why you are posting emotionally without data or facts. How long before the money runs again and it’s more dilution begging bowl yet again. The banks won’t touch 88e, that speaks volumes, if you’re not a zombie investor who always wanted a dog. (You got one here that’s for sure). Get out with your shirt on your back if you can. Plenty of real cash generating opportunities around folks.
OMG - Paranoid and impatient posts. The spread is narrow at 0.5% ish. Market makers can over buy and need to reduce big sales but eventually this will level at fair value of which there are 2 numbers. There is what’s reflected in next weeks results and if all the boxes are ticket you’re looking at about 110p. However sun of the parts if an offer was made would realistically heap the company for 200p unless 2 bidders got in a bidding war side by side. If next weeks figures show more write downs and lower than estimated revenue and not much closer to break even your looking at 75p to 78p - I’m in deep at 750k shares but might need to wait 18 months for my sell out price target of 200p. Anything above that is an unforeseen lucky bonus. (I’m not normally lucky). GLA. (Be patient).
US President Joe Biden's administration on Wednesday announced it is banning new oil and gas drilling over a vast region of Alaska.
The prohibition covers 10.6 million acres, or 40%, of the National Petroleum Reserve in Alaska, an ecologically important region for grizzly and polar bears, caribou and hundreds of thousands of migratory birds.
88 Energy made no mention of the US decision in its results announcement.
Getting ready for the next dilution. No profit on the horizon billions of shares in issue - Worthless (Get out before you lose your shirt if you haven’t already, no investment case at all, just keeping the Directors employed on nice packages at shareholders expense).
What a turd, £70M loss - It was so over hyped when it floated now reality has set in and it’s ugly.
Timing doesn’t matter, facts are these being cancelled which is good. Means the dividend pot is shared out more per share in existence. I’m a bit worried they will chop the dividend down. Can’t be paying 15% I reckon (Too good to be true).
Yep, it’s tricked up when you read the RNS words it’s like a new Microsoft off to the moon. Then when you look at the facts and numbers it’s like an unflushed blocked toilet.
Kelso is just few guys that buy shares claiming superior knowledge that’s all. Very clever actually because they are rewarding themselves with nice salaries and free shares etc so they rarely lose anything personally only Kelso investors. I’d much rather do my own research own my failures and successes paying just the trading price. (I avoid the Kelso’s of this world completely(. The only good thing about them in my view is they realise what a huge upside there will be with THG, either and M&A or it will just start to out perform anyway and crawl back it’s float price of 500p.