Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
They pushed out cash break-even by at least 6 months, and given current cash balance, the market knows they will need to raise again. Place your bets on what price that raise will be at.
Underlying fundamentals are great, but communications and management have been awful
Key line for me - Previously reported Group financials including revenues, net revenues per Accrufer® prescription, and compliance with financial covenants on the Group's debt instrument are not affected by this change
Can buy below the offer price now. Woo
Back in here after last selling out in mid-40s couple of years ago. Have kept an eye since and seems right time to be back. It's a goldmine if they can get the execution right.
Bit below suggests we may have had more approaches since the bids last summer. Wish these approaches would be made public so shareholders were aware of them.
"The investor added that Moulding, 51, had been approached to de-list THG by funds 'looking at good assets that are undervalued', because it had 'stabilised' since Allen arrived"
The market cap is now below the £800m raise last year. Given so much of the raise still sat in cash, market is effectively pricing the THG business before the raise at £0.
Market can stay illogical longer than you can stay solvent
Interesting comments with the rating this morning...
British retailer The Hut Group has tapped Charles Allen to take over as independent non-executive chairman, with immediate effect.
The Hut Group said on Tuesday that Allen's appointment followed an international search initiated back in October 2021 when the company committed to splitting the dual roles of executive chair and chief executive officer held by founder Matthew Moulding.
The London-listed firm stated Allen, the current chairman of Balfour Beatty and Global, was "a highly experienced chair", with industry expertise across retail, media, technology, gaming, food production, and manufacturing.
Analysts at Liberum noted that following "a raft of other improvements" to the group's corporate governance structures in 2021, the appointment of Allen addressed nearly all the concerns previously raised.
"What we find anomalous with the valuation, is that the fundamentals of the group are better than at the time of the IPO. So the 90% share price decline from its peak is excessive. Trading at 0.4x forward EV/sales and 4.9x forward EV/EBITDA is a distressed valuation which is wholly inappropriate for THG. Surely if this persists then some form of corporate activity is on the horizon," said Libreum.
Interesting he talks about refining the strategy.... I wonder if that means the split of Beauty will get scraped. That was due before June but management commented in ye conference call they were significantly ahead of schedule.
New chairman refining the strategy is a nice excuse if they took the idea to the market and the valuation was no different to current sp...
Key piece for me in the Times article is "A source close to Moulding said private equity firms had approached THG, rather than the other way round"
Therefore it's a certainty we will have an RNS in the morning as that's MNPI and they'd be in big trouble for confirming the approach without a market update.
Big question for me is will it include a potential price / transaction detail. My hunch will be it won't and will just confirm some interest. My guess is +£2 close tomorrow and £2.50-£3 through next week if the City thinks deal is credible.
No doubt, but it was the same city that priced the IPO at £5 and had broker ratings of £10+ less than 18 months ago. Fundamentally the business hasn't changed and continues to trade above IPO forecast. The inflationary environment, which most believe is transitionary, is new but that impacts all businesses. Fundamentals win if you can hold long enough
Remember the context, nearly all other online retailers put out profit warnings in Q4, with much lower revenues and smashed margins (eg BOO ASC AO). Whereas THG met revenue target with only a small trim on margin. Demonstrates it's robustness and why I think it's a leader in the online retail space
As per my comment last weekend on the MoS article, I fully support the need for shorts/hedge funds in the market. However, what I strongly don't agree with is the methods used by them, that seem to have got worse over time and encouraged by the lack of action from regulators. It's fine to bet on a company being overvalued, but releasing false accusations and information in a coordinated fashion across the media needs action.
About time somebody tried to highlight the issue. If I'm honest, I'd rather it wasn't a company I'm invested it as baiting the dark arts may well have it's short term consequences. But overall delighted somebody has taken a stand and highlighted the behaviour to FCA and I agree with the point MM has made on this issue.