Member Info for Rock8

Sorry
MM didn’t open the front door to bidders knocking with offers 170p++++

1pencil
MM don’t open the front door to bidders knocking to offer 170p++++
That’s why we are 75p
The market believes MM is too aspirational in his valuation.
He needs to convince the market that his valuation is correct to build confidence and the price price back up.
If you look at the recent Pearson approaches which were also knocked the share price never returned to the pre bid pricing. That was because Pearson engaged in a constructive conversation and opened up their book.
At the end of it the bidding process the market/analysts agreed with Pearson’s higher aspirations.
That’s not the case with THG.

HeresHopin
Whatever happens I wont go short.
I believe the share price should be much higher but except that given last week’s events the market firmly disagrees.

No one on the LSE BB moves a share price.
It’s a private investor chart room.
It should a place for an exchange of different views and ideas.
I want the share price to go up.
If I believed that just ramping the price here would do that, I might follow some of the many many that are doing just that!
But it’s stupid at the moment as this is going to need a trend reversal against a weak market and that needs to come from the company or perhaps even an major analyst upgrade but that’s extremely unlikely.
Its all down to the man that got us down here - MM.

Https://www.marketscreener.com/quote/stock/THG-PLC-112544292/charts/

Only the company can try to reverse this.
Eg chairman buying, directors buying, telling the market how they convinced major shareholders (assuming they spoke to outside shareholders?), etc

The need to act now to reverse it especially given the market backdrop probably isn’t going to help.
They need to find a way to explain the logic of their recent decisions.
No one this board is going to influence pricing either way.
The market sentiment towards THG needs to change quickly.
The Algos will otherwise just use the trend data and after the past few weeks that’s appalling.
At this point the low RSI14(oversold data) hasn’t provided any support either.

They need to act quickly to restore market confidence.

Check todays the ‘marketscreener.com’ technical chart for THG
Long term support 35.9p
Short and Medium 74.4p

…………… A breakdown of 78.30 is the ultimate target, potentially opening the door for a slide towards 55.25 and 127.2% (100% and 127.2% Fibonacci extension levels). 33.25 (141.1% Fibonacci extension) is an additional target to the south, which only becomes viable on a deeper correction.………

Hopefully won’t happen

Read the statements and reports.
There was no dialogue and as the books were never opened.
Yes it can happen but it is very unusual given the price premiums being offered.
It has increased the markets concerns over governance - Hence the price reaction.
Let’s hope the market changes it’s mind before the next support levels of c.55p then c.35p are reached.
I also don’t think they will be splitting the company any time soon as the SoftBank option/deal is obviously dead.
They need something new to restore market confidence.
Didn’t keep shooting the messenger.
Only positive views seem to be tolerated on this BB and that’s extremely unhealthy for investors.

The problem was the way the bids were rejected and the lack of any constructive dialogue with the potential buyers.
Unfortunately the bid process has just led to further concerns over the company’s governance.
No one understands the BoDs behaviour.
Not sure how that’s going to be resolved at this point?

He is ‘chasing rainbows’ with our money.
He should deliver or ship out.
Too many broken promises

STOCKS TO WATCH: Shareholders of THG must feel they are chasing rainbows, each time the froth bubbles away, shares are worse off than ever
By FRANCESCA WASHTELL, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 21:50, 18 June 2022 | UPDATED: 21:50, 18 June 2022

Long-suffering shareholders of Matt Moulding's The Hut Group must feel they are chasing rainbows, from promises of corporate governance changes to murmurs of private equity interest.
Each time the froth bubbles away, the tech firm's shares are worse off than ever.
Three weeks ago, the board said it had received a preliminary approach of £1.70 a share, breathing life back into the stock.
Last week, Belerion Capital and Nick Candy separately ditched their interest.
The stock hit a record low of 74p last week.
Despite the arrival of chairman Charles Allen, assurances that reports will be more comprehensive and promises to ditch Moulding's controlling 'golden share' – which lets him veto bids – things seem worse than ever.
THG has said it received a number of 'unacceptable' bids.
But feel for the shareholders who have their own opinion about what is unacceptable at the group.

The IPO targets are irrelevant in today’s new world.

Only a private investor would say that.
The institutions are fully aware that in an uncertain world valuations change.
THGs valuation has plummeted.
It was priced in a very different world.
The institutions would have taken the offer without absolute certainty of high return before the economic outlook deteriorates.
The BoE are now saying 3% by end of year combined with slow growth.

I don’t think separation would convince any sane institutional investor to turn down a certain 190-200p cash offer when the company has been trading a between 75-125p for quite some time.
It doesn’t add up.

Now I am ramping but I didn’t mean to.
It’s just nothing else adds up here.
The largest shareholders aren’t stupid?

In my mind it can only be the knowledge of an alternative bid and the only way that could be certain was if it’s coming from the management and they presented it to major shareholders.

Nothing I have read or heard makes sense.
The company stood firm and effectively said no one could come up with a price which matched the value of their alternative plan?
That plan must provide certainty for the major shareholders to have backed it?
It also must materialise quickly to provide certainty as the macro economic outlook is deteriorating.
But what is it and why no leaks?

I agree
That’s why the largest shareholders must have been offered an alternative route with certainty and a high price quickly.
Everything is deteriorating so how could they decline a 170-200p? it would be absolute crazy!