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@schlemiel I bought and the price dropped 95%. This game is all about levels.
@Hughesleisure When you said double did you mean halve?
Dilution is fine if you're making money through the share price but the erosion in value from IPO plus the dilution is hard to stomach. We are seeing the green shoots of recovery in terms of results but I'm probably going to give this another year and then cut my losses if nothing has changed.
Monty, the influencer business is huge. My kids don't watch tv these days, they watch YouTube and use Instagram/TikTok etc. They are massively influenced by what they see online.
They could sack all of the IR staff and not feel any pain whatsoever.
I've been saying that for a few years now Dave. Problem is, I've got pins and needles in my a*se I've been sat down so long!
The company is in good health and the results are fine, so as a board of directors you then need to look at why the SP is being decimated time after time. Unfortunately, it comes back to who is at the helm and the wider investment community has no confidence in him. His attitude is fine for the MD of a private company but the board are negligent for letting this persist.
James Watt appears to be someone who Moulding would be well advised to steer away from. Puts his foot in it more than Mad Matt and that’s saying something.
Pmh- I don’t have a habit of defending Moulding but what I would say is that he has done what we wanted him to do, ie.not disappoint with the update. What the market does after that is out of his control to a point. Yes, there are things the company could do in their communication that might help but, in this instance, I think they have done their bit in terms of delivery.
Sb- We keep saying “if this happens and that happens, the share price will adjust” but it doesn’t happen. We have put in two good updates now and are forecasting FCF neutral but the market dropped the sp by 20% pre results, increased it by 10% on the day of results and has since dropped it back to where it was. If you add to that todays negative retail numbers and potential technical recession, I would expect THG to rise bearing in mind it has already told us what trading looked like at the end of last year and the potential that the general UK sales figures would encourage the BoE to cut rates sooner. This is not the case and therefore it leaves you a little bit cold as an investor in the UK.
The board have put it out there that they are looking for partners to invest in any of the divisions individually or the company as a whole. I can’t see that option not being explored by at least one private equity firm this year.
Definitely cash and available finance. There’s no way they have £600m in cash alone.
This drop in markets today is overblown. Inflation is still going in the right direction overall with a little jump in alcohol and tobacco. Expect a drop next month unless the Red Sea kicks off properly. I’ll be using a bit of free cash I the meantime and buying into some of this fear (not THG though, I’ve got enough of my hard earned in this one)
Don’t worry mate, our time will come. Keep the faith!
Steve, you were surprisingly quiet yesterday when the sp rose. The market likes the update and although it isn’t setting the world alight, I see THG like an ocean liner (hopefully not the Titanic) which takes time to turn but when it does is very difficult to stop. The trend on results is good compared to what we’ve had in the past and you have been here long enough to appreciate that.
They increased prior to results. Tossing the coin and lost.
I agree Ryan. While the results are not smashing it out of the park, what you can’t argue with is that the tide has turned and hopefully we now see a slow rise to reality.
Investing 101, from my perspective it’s not about the available cash, it was the comment regarding the strategy which is to bring in partners. We already know that offers have been rejected as control would not be given up and this just reiterates that to any potential suitor. With all the cash sloshing around the US PE firms, I can see something being done on at least one of those divisions during this year. This would be a catalyst to realising some shareholder value as we would get an actual valuation on a part of the business which would then knock on to the other divisions.
I don’t block people as a rule but I’m going to make an exception for this idiot.