RE: All out again2 Jun 2023 14:02
FFObsessed
"Literally said yesterday no reason for this to go up..."
The job of the market makers is to present prices in the market for all to participate, sellers and buyers. It's up to you and all whether you participate or not. When they drop the price the aim is to create volume and liquidity by inducing sellers and presenting prices where people buy whats being sold.
The problem here is that despite several attempts to drop the price under 60p and to induce sellers, nobody is selling. It only attracts buyers and the volume has remained very low so it doesn't stay there long. This mornings first half hour was an absolute pittance of volume and more and more of the supposed 35% are sitting on their hands and at the moment are in the 65% camp and climbing.
There are many good reasons for that:
~Shorters who were sat loaded up and poised counting their money prior to the last update got spanked hard by MM announcing the Apollo bid the very day prior and just when they were at their most vulnerable. Good profits instantly turned to losses and the need to exit in case the bid came off. (MM 45% Ouch!! Linkedin post)
~ Matt Moulding todl everybody post the Apollo bid that they had valued THG Ingenuity ALONE at greater than the share price, market cap prior to the Apollo bid announcement (65p) That gives you THG Nutrition (A £675 Million global revenue business) and THG Beauty (A £1235 Million revenue business) BOTH FOR FREE.
~ Better communications, understanding of the business and visibility. Into Iceland, Into Boots, Into Asda, MP products and Vending Machines for "Muscle Fuel in Gyms, European expansion in Denmark, Spain, Germany, Portugal and America. Espa and Espa Spa, Pay oer Pick at Ingenuity etc etc.
~ Closure of loss making "On Demand" division. ProBikeKit just having gone to Mike Ashley's Fraser empire in a post this morning an example
~ 2 Active Investors
~ Previous Headwinds turning to Tailwinds: Whey prices, Energy and transportation costs
There will always be some that are trying to get a cheaper entry price or to trade the share for a few pence here or there but sometimes they get caught out when the share moves out of their range and they are left without.
With the Golden Shares counting down by the day, 2 Bid occasions having arrived here already at far higher prices (at 170p and above imo) and for all the above reasons I personally think its a dangerous game to be light on this stock.
Whereas weak holders previously may have been frightened out of their shares by FUD that does not seem to be the case any more at these levels (aka low volumes)
More propensity for the share price to rise from here than fall imvho.
You make your own choices and live with them.
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