Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Those were great results, and they seemed to have genuinely surprised many pundits and analysts. Yet the price is going southwards and no-one appears to be building any sort of stake.
The golden share is gone, there really is nothing to stop a predator building a stake. Instead, what is going on? Nothing. How on earth is this possible?
Even the Directors are not buying in despite the laughable share price. We are no longer in a closed period yet they still do not buy. Why?
I agree the current share price massively undervalues the overall group but if no predator / bidder emerges, then it would seem this could go on indefinitely. On the other hand, one reads about various well financed funds looking to buy up cheaply valued UK companies. How cheap does THG have to be before someone throws their hat in the ring?
Looking at the mauling the share price has been hit by over the last few weeks, I am hoping expectations have been set very low for Monday's update. If not, well, then I am surprised. On what sort of metric is the current market cap any sort of reasonable valuation for this company? Frankly, the current share price almost infers the company is in danger of going bust. This is ridiculous, yet that is the position that shareholders are all in, meanwhile no Directors have made any purchases despite the laughable share price.
Given that the company was logically in a closed period for the last month so one supposes that Directors could not buy, if they still do not buy after Monday, then I think we all have to question why.
Good luck to everyone for Monday - i just hope it answers a few questions and forms the basis for a turnaround in this dreadful share price.
Like everyone else I hope he makes a formal offer soon, he's certainly building his stake up at a very controlled buy in price.
However, those of us who remember when Debenhams was on the market will remember how MA lost his bottle to make an offer which led to the demise of Debenhams. The shame is that the combined Debenhams / Allders would have been a strong presence on the high street and Debenhams was better regarded than Allders. Yet he let Debenhams go, and now he's closing various Allders branches because it is so weak.
Decision making at Frasers HQ is clearly an opaque matter.
Somewhat important that SMS now lets go of the golden share at the next update. Once that happens this should double at least.......
Let's hope for something good for once. It would be about time, and something needs to now happen to reverse the currently awful share price. This must surely be a bid target at this lowly level.
FrDickByrne, I guess it was not RG??!! That indicates we have someone else buying in.
I am just wondering when the impact of the recent good update will come to play on the share price? I was hoping we would be hitting some higher level than this by now! On the other hand, the market has fallen almost every day since the RNS.
Something will give soon - these shares are tightly traded, so at some stage anyone buying in is going to have a major affect.
How low is this share going? Surely one day our luck must change?
Simon1367, fair comment - my error. It's Frasers that are making the profit.
However, it does seem strange to me that as a potential bidder, and at the very least, they are currently appear to be building a stake pre making a bid, to then be selling puts to other parties seems a questionable activity. Why for example would Qube increase their put stake by buying them from Frasers? That seems to me like dealing with the devil - if Frasers do bid, they will lose big time, and who can tell what Mike Ashley will do next? Every time these shares dip to this level, it is likely that Frasers will up their stake. Soon or later, they will make a bid - I really reckon its just a matter of time.....
Buying puts when the share price is so low and a potential predator is building their stake seems a very odd policy. That Frasers should be the ones selling the puts makes it even more dangerous. For us ordinary mortals, I would suggest it now is the time to average down by buying more shares......
Perhaps the more interesting issue is - who have Frasers sold the put options to? Since these sales appear to have arisen on 10th January, they presumably include Qube, Squarepoint, and GLG. But it is ASOS who is selling the puts, so they are receiving funds from these sales, whilst it is logically Qube etc who are taking on the risk of the puts.
Seems to me a strange way for these funds to operate, especially as Frasers could at any time make a formal bid for ASOS, despite selling these puts to these funds. Clearly this way of trading is like a goldmine to Mike Ashley, and he cannot stop himself from coining it in, despite owning an increasing shareholding via Frasers.
Whatever Kelly is or is not doing, I think we all have to admit that the market is certainly not yet catching onto things. I really expected a more aggressive upwards reaction after the recent update.
No wonder so many of these types of companies nowadays list in the US.
Now trading sub 44p - I guess the pricing of disappointment is ongoing
How can Directors buy at the moment? The stock must be trading in a closed period at the moment if the next update is due next week?
These two issues have got to be sorted out soon, each could massively affect sentiment here.
Believe the next update will be on 17th January so not long to go.
It is completely oversold but then again, previous RNSs have greatly disappointed so future disappointment is now priced in again, which is a shame. Sentiment needs to change here.
"Today's results, along with continued acceleration in top and mid-funnel prospect engagement across our key partner and large strategic customer segments, support our belief that we are seeing a return to positive and sustainable growth and reinforces our view of first half stabilisation and second half re-acceleration. We are pleased to be able to make the resulting upward revisions to our full year ARR, revenue and profitability guidance as well as reduce risk associated with achieving second half financial targets."
Fully expect the market to now reassess things and rerate CRTA higher. I expect the shares to be ratcheted up over the 100p level within the next few weeks.
I also expect further purchases from Richard Griffiths. I do think the way he is amassing shares, he is going to have to give an explanation pretty soon as to whether or not he intends to make a formal bid. His next purchases are likely to take his holding over 20%.......which means we are starting to approach the 30% threshold for mandatory disclosures.
Very exciting times here.