Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
VC - I think that the point with the Apps is that a consumer is less likely to 'Compare the Market' when buying direct via an App. A simple Google may find better priced products and divert sales away from THG - a recurring direct sale via an App, even at a slightly lower margin, is better in the long run for retention.
Just IMHO.
ASOS results really show the cost of expanding faster than the business can accommodate. £140 million Write Off to close one fulfilment site which, perhaps 4 or 5 years ago, was assessed as necessary to allow future growth.
I know that there is much debate about whether THG remains a growth stock or an out and out retailer (with a bolt on tech business that keeps distribution costs 'In House') - but the reality is that they have expanded at a reasonable rate and utilise all of their sites.
I, for one, would like to see THG continue to build solid foundation from which to grow.
I think both ASOS and BOO show the case for not overstretching growth.
Problem with Depreciation/Amortization is that it is not transparent on the Balance Sheet or Financial Statement.
£50M amortization of acquired intangibles (probably Goodwill) suggests an overpayment compared to current book price.
£69m amortization - this interests me but it is difficult to know what it specifically relates to.
£95 depreciation suggest there is a lot of tech/hardware to be depreciated - what we don't know is the depreciation period but a 'finger in the air' guess might suggest several years worth of reducing the value of expensive assets..
What am I missing.
The Operational Loss includes a significant number of non cash items - this is money that is held on the Balance Sheet and is depreciated/amortized over time. It suggests a reduction in asset value (be they tangible (plant/Machinery/Software/Hardware) or intangible (Goodwill). It isn't actually a cash loss or a loss from Ongoing Operations.
The Free Cashflow shows that Ongoing Operations is cash generative.
I'll sit down ready for my slating/dressing down.
You think a MyProtein and TDF tie up would not be a good thing with a viewing audience of 3.5 billion, yes billion. Then there is also the Vuelta & Giro - it is literally huge - probably the biggest sporting events after the Football World Cup final.!!
I would have liked to see them tie into a team in the the Tour De France or the TDF as a whole - that has a Global audience of 3.5 billion viewers. F1 is a great start and if it is a small part of the advertising budget then it seems like a bit of a no-brainer.
Manifesto,
Look at the Holding Notifications - there are still plenty/millions of shorts still open.
We are all in the dark until the news drops - whichever way it swings.
I have been in and out of THG since mid 2022 and have won and lost along the way.
Right now this is a binary shout - of course the Company will go on if a bid is not forthcoming but there will, undoubtedly, be some short term pain.
Lets hope it swings to the positive and a bid is announced. We can all take our money and move on.
The video was played/distributed to employees in Dec last year. The fact he has put it on Linkedin now shows his frustration but it is not new and he has been frustrated with the actions of various parties for some time.
It is aimed at employees - saying 'stay with us, we'll prove them wrong' - especially since many of them would have purchased stock at significantly higher prices than where we are now.
The figures always look really bad when a company decides to write down intangibles.
I am not a fan of carrying large intangibles as they distort the balance sheets - most companies plan to write them down over a number of years.
In the case of THG, the restructuring has meant that they wanted to clear the decks and balance sheets going forward will be much more positive with no need to further have intangibles/amortisation increasing operating expenditure.
In the short term it looks bad, however, once it is out of the way then things begin to look much better.
Of course you can always put a negative spin on this and say that 'Goodwill' simply means 'Overpayment' and that may be true but carrying on the books for years is no help - we are simply realising depreciation in one rather than over time.
Any potential buyer would see this positively so they know that the intangible assets (which are worthless) have been sorted out.
Went into my local Asda (Fareham) the other day. I was pleased to see a new 'MYPROTEIN' display. When I was looking at some of the products I noticed that some (not all) of the Bars were out of date - some by quite some time. Maybe I should have highlighted it to Customer Support.
I am not much of a protein user but good to see the products on sale in an everyday supermarket.
We are hurting now but the KRG and Iraq Government will feel the pain very quickly. There will be no appetite for this situation to last any longer than necessary - they will be in a rush to resolve the situation ASAP.
"Was forced to sell 115k shares at 31p with a £1.70 average due to margin last Tuesday. To see it double in price and bought back 37k shares at 47p"
There will be peaks and troughs - try trading your way to some gains. Sell peaks - buy troughs. Don't look for huge swings. Worked for me before I got overzealous on the Takeover news and was stuck for quite a while on nothing but losses. Still in negative territory but looking to trade some of my holding so increase my total holding.
Sometimes it makes sense to simply play the game.
Sold 19488 @ 57.18p - net £11109.54
Buy 20390 @ 54.16 - total £11109.70
I sold half of my 40k shares.
Increase holding by over 900 shares in less than one hour.
I appreciate I might get caught out playing this game but that a risk I will take having sat doing nothing for months.
There will always be something of a pull back on the way up as those who entered at lower levels crystalise a profit or those holding higher maybe reduce exposure.
A temporary pull back is nothing to worry about.