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Definitely worth waiting towards the end of the day to buy at least. Maybe not until Tuesday or Wednesday. See where the support is, it should hover around there for a time. Stopping a 25% drop is like trying to stop a freight train, it takes a while.
Whilst MM is far from a perfect CEO, he has a vision and I think a lot of THG's struggles has been due to the cost of living, not necessarily due to his poor management of the company. Aside from the massive retailers, the small retailers have struggling SPs too (e.g. asos, boohoo, farfetch list goes on). Yet those companies don't have such a strong call for the CEO's head only because they aren't as well known as Matt. Granted I don't necessarily like the rants on LinkedIn but I think he has a real understanding of the company and where he sees it in the future. If we got rid of MM I could see the company head into the abyss tbh, probably resulting in Ingenuity being disbanded, beauty being sold off for 30p per share and nutrition sold for 80p-100p per share. I think most on here wouldn't want that.
A good outcome for me would be for MM to relinquish CEO responsibility once Ingenuity gets traction with the higher value clients, which would in turn mean Vivek has done a really good job then Vivek takes over MM as CEO of the group.
Funny, I'm mid watching the call again. Sounds positive, especially given the price again today. But what really gets my goat is they've made it look like the cost of sales has increased in H1 2023 VS H1 2022 but its because they're applying the percentage change to two negative values. Honestly rookie stuff, all it takes is a review of the numbers to make sure they make sense. "Did cost of sales really increase from less revenue compared to last year?
Oh no, better change that"
Honestly so simple.
I think Oliver Cookson is reading this board:
"For clarity, I am making these comments as a silent shareholder with my interests holding a stake of over 1.3% in $THG. I am fully aligned with shareholders' best interests and solely focused on enhancing shareholder value."
Oliver Cookson response to city spy:
"#THG has pretty much been a
@Myprotein
trading shell since 2011. Back then, they were selling CDs online at a loss. Today's results, once again, make that clear.
While there's potential for Ingenuity to change their course, the current traction is very disappointing.
Shareholders must be once again disappointed by these results.
Some serious conversations and difficult decisions must be had."
Wonder what difficult decisions could be made?
Newby12, I don't know what you were reading but THG results were not good and hence there is a negative read across, and why THG is down 15%+. I expect it to keep falling as it has near to £1bn market cap and Ingenuity is basically a flop (have always said this). When you tear back the business to just nutrition and beauty, it becomes somewhat quite similar to asos and Boohoo. Yet in asos's case, it has at least 50% higher revenue, likely more sticky customers and a proven track record to make significant profit when the macro improves, yet the market cap of asos is half of THG!
Before anyone jumps on me for THG comments, I really do like nutrition part of THG, but I think it got a little over hyped on the buyout news and the valuation didn't make sense compared to asos.
Boohoo has about half the revenue of asos, admittedly it has a better balance sheet, i.e. more cash and less debt, and currently better margins but if asos can achieve comparable margins through their turnaround program I expect asos to be worth double whatever boohoo is. Plus I believe the asos brand(s) is much stronger than Boohoo, so maybe even higher. Baring in mind the market caps of the two are very similar currently.
It's clear Ashley thinks this too as he has double the position in asos compared to Boohoo.
Al4x, you mention investing in Easyjet for the recovery play. The recovery from covid yes, and depending on when you invested there you'll have missed a lot of the rally already.
Investing here you're investing on a cost of living recovery, which I think will come next year sometime. But the recovery in SP could come before then and buying at the lows mean your returns get supercharged when it recovers.
The bounce at 390 looks good on the chart. I should really start listening to my own advice!
ryanf
Posts: 808
Price: 403.90
No Opinion
RE: Share price8 Sep 2023 09:35
Just from my reading of the charts, we can go as low as 390 and still respect the upward channel of higher highs and higher lows.