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Morning Manifesto

I think some people still don't grasp the difference between passive investors and active investors.

Generally speaking all Retail Investors are passive, although some who participate in attending AGMs, company meetings and involve themselves in Investor Qand A's and badger Investor Relations may be deemed more "active"

Active Investors are there not only to try and nurture changes to increase the share price, but are also there to become troublesome and ultimately to make things happen and get the value increases they are seeking.

Another month drops off the Golden share tomorrow. After that expect the next Bid proposal to be put to the vote.

Actually not a bad presentation off Kelso given THG is their first and only investment to date.

6 to 24 months planned for each investment so they are with us for a while yet and the Apollo Bid proposal arrived ahead of time. Also if they are looking to generate a 25% absolute return per annum then it follows they will be trading CFD's for profit, and probably already made that off the Apollo approach

Looks like they try to work with with MGT to effect change through

-Change balance sheet

– Change strategy (corporate OR even investor relations strategy)

- Change management OR perhaps their incentive package

- Change stock market platform or go private

But have a much wider "Armoury" that they can (and imo will employ) to be a thorn in the side of any BoD.

• Use the RNS to highlight issues by virtue of being a public company

• Use the Companies Act 2006 provisions to help make change

- Section 303 CA 2006 – ability to appoint or remove directors (5%+ / 51% vote)

- Section 321 – require a poll at general meeting

- Section 527 – require to publish any matter of importance of a resigning auditor

- Section 314 – require a statement to be circulated to members

- Section 338 – require a resolution to be put before an AGM

• Work with top registrars on canvassing votes – a little known force

• Use social media to get points to retail shareholders

• Use high net worth & PE investor contacts to underwrite certain deals

I also like the way they make mention of the with top registrars in canvassing votes and this wording "Often no chance to test register appetite for a bid"

They are happy to do what you or I can't do and make things happen, one way or another. Matt Moulding needs to get the THG share price up significantly prior to his Golden Shares expiring or he might find Kelso (and others) pushing for any next bid to be put to shareholders to test that "bid appetite". At this share price there will be other approaches and those TR1's may be prove more useful than you think.

It'll be interesting to see how many of the cynics jump in behind their next investment as they didn't do too bad in flushing out the Apollo bid here. Never also forget or underestimate Sparta's success as an active investor also.

And sat at over 25% what you be doing.

~Approach Minto and buy out his shareholding pre-suspension lifting

~Approach Allsworth and buy out his shareholding pre-suspension lifting

~Approach the Board of Directors and offer to make a "Strategic Investment"

~Wait for the suspension to lift and accumulate

Whilst we are all sat here happily waiting for the next update and suspension to lifted others are out there plotting RVB's future.

Holding over 25% already BOO can't be far off making their move.

"Do you know what TERP actually means?

It's the average of the shares you had at 1400p when the RI was announced, combined wit the new shares you bought at 4.90 ish.

The average is 808p.

So at current prices of 525p, you are 35% down on your investment."

The TERP though is actually where the share price should have been the averaged out price at which it settled across all existing shares at previous market prices and all the new ones at the RI price.

So some may be down 35%.

But 808p is where it should have arrived at.

So a targeted over 50% gain if you think it is going back to 808p and where it should imho rightfully be.

I personally don't care how long it takes be that if its in a week, a month, a quarter, six months time or a year.

I think more of the 35% are actually now in the camp with the other 65%. Started last week with the lack of sell volume.

People here are less likely now to be duped by HF burner phones and placed stories, often without substance.

In any case all know that there have now been to Bidding events here @THG and the price of all of them has been significantly higher than the present sp. In fact the present share price isn't even fully valuing Ingenuity on what Apollo valued it at, and you have the two global businesses of THG Beauty (a global £1235 million revenue business) and THG Nutrition (a global £600M Revenue business) for FREE.

Getting their message out on all its channels and targeting both those who wish to go on Vacation and on Staycations. Good timing just prior to this half term and the return of the sunshine. Beauty does seem to be upping its game.

https://www.linkedin.com/posts/thg-studios_lookfantastic-activity-7067858493084422144-EwqH?trk=public_profile_like_view

The vote against political donations is also a shrewd one imvho Manifesto. Lets bear in mind that in his quest to publicise and try and reform the city conspiracy of hedge funds and their modus operandi then most of them it has to be said make their own political donations. To make your statement you have to take the higher ground and stop contributing. If Matt Moulding wishes to do so then then let him do it with his own money. Also the situation can always be reviewed when the company gets past breakeven and is generating FCF.

Just handy to know how these hedge funds operate before you consider handing over your shares for their quick next profit. It actually is starting to resemble a travelling circus flitting from one town to the next. It was THG last week and it backfired, for TGH fought back and publicly countered the narrative and even pointed out the same scenario existed at the FT.

The FT imo needs to start distancing itself and resorting to objective reporting for the sake of it's own reputation, albeit Dark's response is good and nibs things in the bud and for balance they have published it also. The big positive however is that it's $50M shares that can't be sold into the market or loaned out.

THG and the FT last week or so, fyi.

https://www.linkedin.com/posts/matthew-moulding_londonmafia-ft-ugcPost-7064855582515564544-i3Um

Some good points made 100notout and what you are saying on 2 counts is absolutely correct. Firstly that is 44 million shares that won't be coming up for sale. Secondly you are completely correct regarding Matt Moulding at THG and like 100n.o. I'd urge you to view the attached 2 links and watch the video in particular.

This type of unchecked behaviour is ultimately tarnishing and damaging the reputation of the City of London and it is causing a dearth of new companies listing and causing a multitude of other companies to quit the LSE in favour of markets who have a greater appreciation of technology and growth companies and are better able to assess their true worth.

https://www.linkedin.com/posts/matthew-moulding_in-the-words-of-alanis-morissette-isnt-activity-7054132342482718720-0XO4?trk=public_profile_share_view

https://internetretailing.net/thg-boss-over-fishing/

Https://inews.co.uk/news/technology/chinese-hackers-cripple-infrastructure-targeted-uk-operators-2369160?ITO=newsnow

I think the more pertinent question with both the e-gate problems and indeed with BA / IAG at then end of last week - is did they pay any ransomware demands. No such thing as coincidences when these systems all start failing at the same time - and always timed to maximum effect, this time to coincide with the start of half-term.

Moral is pay for top notch and best in class AI cyber security or pay the Ransomware demand when it hits you.

https://metro.co.uk/2023/05/27/travellers-face-long-queues-at-uk-airports-after-e-gates-stop-working-18856681/?ico=amp_tag-post-strip_item_2_news

Stevie it also serves to show confidence in your prospects going forward.

Happy to vote in favour of the resolution to buy back shares and against any further issuance of shares.

Manc39 the share price was taken down too low. Solely Market Makers my guess and trying to tease as much blood out of a stone as they could get. Unfortunately it got to the point where volumes were diminishing and that blood was completely drying up. You only need to look at this weeks volumes.

Every man and his dog can see from Matt Moulding's linkedin post that Apollo valued THG Ingenuity at circa 65p or higher as that is where it was prior to the bid.

Everyone can also see the expansions at THG Nutrition and also new accounts being added at THG Beauty. Why on earth would anyone sell them short at sub 60p.

Hopefully it gets itself back to a more sensible level to attract in both sellers which is always a requirement to furnish buyers.

Hopefully a move nearer to 70p in the interim whilst we await any further newsflow or next capital event.

It hasn't even got back to the 63p / 64p it was at prior to the Times and FT's, one well countered story and the other a non-story) Seems like an age ago.

With any luck the last few days have frustrated some of the day traders who sold up and moved on.

Hi PG, I've actually read many books on the like. Gets tabbed to eiether the client or corporate hospitality. It is the Monaco Grand Prix this weekend.

Our best endeavours btw come from buying low and selling high.

We should all hopefully find a larger buyback amount in Tuesday's RNS and the same will apply on any days where todays shares get bought back and any fall gets given back.

Enjoy the BH weekend and the Monaco Grand Prix. It actually is this weekend.

I'm actually voting for THG to purchase back its own shares as well.

If previous headwinds are now tailwinds and we can afford it (as kelso have suggested) then take as much of the 35% fast money off the table. Always buy back when its cheap then either cancel those shares or put them in treasury.

If in treasury, you can always recycle them having bought them cheap for employee incentivisation or if you part fund a takeover in shares.

Means you don't need to issue new ones and dilute.

The extra volume lets the brokers on the Buyback step in to accumulate more shares. Cancel them or put them in treasury. It's not a bad thing to have running in the background during these dips and to be buying back when the sp is cheaper.

Another set of individuals probably put an algo on auto pilot this morning and now touched down in Nice with clients and enjoying the spectacle of the practice laps around the harbour at Monte Carlo. Jolly good weekend had by all. Check back in Tuesday next week and reverse the algo. Trip all paid for and no doubt a handsome profit on top.

Is that not how it works?

Not saying thats how JPM do it but I've been around long enough to have witnessed all the shenanigans of brokers notes being issued telling people to Buy when they are selling and vice versa.

Add it to the countless others and work out the average. That's where the share price should be, somewhere near consensus.

They always come written with the financial self interest of the author and the clients. Pop it out on the Friday and load the luggage onto the Learjet for a trip to the the Monaco Grand Prix this weekend.

Then add a fair bit on top for THG Beauty a £1235 Million revenue business and another large wad on top for the visibly expanding THG Nutrition, a $675 Million revenue business.

(THG Ingenuity valuation as per an average share price pre the Apollo improved bid valuation)