The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I accept the need to raise finance but disappointed this couldn't have waited until after the results of PL082 or at least some firm evidence of progress in the KCB at a substantially higher share price.
There will have been a lot of stops flushed out just under 48p hence the sharp move. Hopefully done.
...Looks like we could be waiting a while.
Also worth noting the price is now sat right on a rising 50 day EMA for the first time since May, this is likely to encourage buyers as a sign its fortunes are reversing.
China reopening is the catalyst for a rerate here.
Nice summary Justice, thanks. I took a position this week, mainly on technicals. My relatively outside perspective is that the market is still trying to find a fair value for THG, If it stays public as it matures it will settle at fair value, Asos and Ocado you mention have had many years for the market to form a consensus valuation. At £8 it was clearly over valued and benfited from the tech covid bubble, at 32p clearly very undervalued but I and I'm sure many others were watching and waiting for a signal of a reversal. Given the steep rally from 32p that looks to have formed a very clear bottom and there will be plenty of buyers confident mopping up shares anywhere near that level now. There's also good support at 48p as demonstrated yesterday. So in summary from a technical perspective I believe this was a defining week for THG and feel the risk from here is firmly to the upside.
Nasdaq looking perky, will be reflected here this afternoon.
It's dropping because the Nasdaq futures have plummeted in the last hour. It's very highly correlated. If the nasdaq firms up the support here will hold and this will bounce this afternoon. Very simple.
In the absence of news I suspect once again the price movement reflects the movement in the oil price.
So who's gonna own up to having a £8 average and finally throwing in the towel at 32p? :)
The rally on the US futures has run out of steam, hence the pause here. Really is heavily influenced by the Nasdaq in particular. A positive day across the pond should get this heading back towards 48p, though needs to hold 40...
40p is the resistance and that's where I'm interested in going long for a trade. Needs the wider market to pick up to push it over.
Completely agree JP, I've been in this share nearly two years now with a considerable holding. It was the relative security of the KCB asset which has kept me invested despite the share price decline. Given the struggles in the KSZ to date, I and imagine others won't be able to continue to hold in such an unpredictable environment. It will be extremely destructive to KAV to split these out.
Rightly or wrongly the share price is highly correlated with the spot oil price at the moment. Oil's been heavily sold off this week which is reflected here.
Fair enough Setanta1, point taken. Tight spread today though.
The spread is quite tight today hence the confusion. Usually a good sign that the MM's are seeing plenty of liquidity.
Yes my buy at 11:08 at 5.52p is showing as a sell.
I've added again here, the completion of this transaction is a key part of the puzzle and a significant asset. The progress is being represented in the share price consolidating in a tight range ready to push through 6p. There's good support at 5.5p too.
Yep, never going to complain about directors buying shares in the market!
CMRS up 92% again today. God knows what's happening.