The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
I concur with the sentiments here. I have considerably more than 18 company stocks. I buy a core holding of shares in a company for the longer term but also buy a holding specifically for trading. Sell them for modest/even small profits and buy back if the share price falls. Don't always get it right but it works more times than the failures. Has not worked with THG with its relentless fall but on the other hand I have more shares to take advantage of the eventual rise that I believe will come. I did sell some of my trading block of shares at 111p last week in the bounce for a modest profit (may buy back) but overall, like most LTH's in THG am underwater. But the THG share price is undervalued in my opinion and will go up when a split of the businesses comes, an entry to the premium market takes place or a sensible bid comes. I hold tightly. On the other side of the coin if global markets collapse, THG will fall as well but being in the stock market we know the risks, but long term holders ride out storms and don't sell at the worst time. Time in the market is what works and not timing the market. THG share price has had a torrid time, comparing it to submarine with power difficulties and dropping towards to the sea bed. Well I believe things are getting sorted, we hit the sea bed and having bounced along the sea bed are about to rise up again.
Like most people I was surprised and perplexed when the share price fell back to circa £2 after the result of the tender offer. I have always had an interest in Cairn/Capricorn for some years and did not offer any of my shares in the tender offer. In hindsight it may have been wise as I could buy them back cheaper. But at the time of the offer I only saw positiveness beyond the offer result. Well we saw a fall in the share price instead. I am reassured longer term after I read the article from Proactive issued at 14.38 on Thursday 7th April. In it, they say Barclays analysts give an overweight rating and a price target of 315p, explains how 40,000 barrels of oil per day are in the valuation for free. It also mentions how some investors saw the tender offer as an opportunity to "exit" and because of the oversubscription there is likely to be an overhang of shares to be sold. Once this overhang is out of the way, along with the buy back the share price I believe will find the higher value it deserves to be. Otherwise it could be a takeover target? Obviously if the oil price collapses or there is bad news on exploration the reverse could happen, but we all know that could happen if we invest in an oil/gas exploration company. Hanging in for the ride up. I would put the Proactive news item link in if I knew how to do it (I am 70 and not tech savvy) but if you search Proactive Capricorn, then under the "News" heading you should find the article "Capricorn tipped for 52% upside" that I found reassuring.
My first post. Been buying small blocks of THG shares regularly during the falls since £3+.
Have bought again at 95+. I think THG will be around for a long time. We know MM is relinquishing his right to block a takeover and intends to appoint a chairman (who hopefully will have good communication skills with the City and Shareholders. Unless we have any bad news I expect we are at or near the bottom. Any positive news on the Chairman appointment/trading/interest in the company or taking it private can only result in a dramatic turn around in the shareprice enhanced more so as short sellers buy to close their positions. I note the comment made about inflation and retailers generally falling. I have shares in M & S which have fallen a lot from recent highs and some of the fall in THG may be due to inflation concerns and pressure on people's incomes but I just feel it is a company that is going to be around for a long time and is currently severely oversold and it is only a matter of time before it swings positively up a lot (unless a low ball offer to take it private is made). I am also in Boohoo which I think, like THG is going through selling pressure but the tide will turn if it gets through its short term headwinds. Hope springs eternal is my current motto. Let me see my hope rewarded please! Fortunately I moved cash into the market in April 2020 and sold in the months after November 2020 and still remain 50% in cash, so can take advantage of falling prices, I just hope it is not a falling knife or an open drain I am putting my money into. Best of luck to fellow holders of THG.