focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Spot on and THG is an easy and compelling share to short because there is a track record of making promises which arenāt delivered on (strategic review) and forecasts which are never delivered and always come in disappointingly below forecast. Add in the utter disdain for shareholders, CEO petulance, āthe jolly boys clubā and a chairman seen and heard less frequently than the Loch Ness monster and you have the perfect short.
Set out a clear strategy and deliver the numbers. The share price will rise and the shorting and criticism of the CEO and the jolly boys club members will then stop.
We know IR at THG are absolutely hopeless so we cannot rule out rank amateurism. However, I think it more likely that investor pressure (Kelso as you speculate) has forced them to publish this RNS.
If that is right, it will hopefully lead to better governance and a realisation that the Board cannot get away with failing to act or deliver on its promises.
This brings me on to the strategic update. It is nothing short of appalling that the promised strategic update has never been provided and that THG has a Chairman who refuses to force the issue.
If the Chairman is too weak to handle the CEO and hold him to account, then he has to be replaced.
JD shops in my location were also very busy. Hopefully a bumper Christmas will help the share price to recover.
Iām reminded of the line from that song;
āThis time, more than any other time, this timeā
And they didnāt win the World Cup.
I hope it will be different this time when the Trappist Monks who allegedly work in IR provide a rare RNS in January re Q4 trading.
I also hope there will be no more Linkedin rantings in the lead up to Christmas or the blaming of everybody else for the destruction of shareholder value which is almost wholly attributable to the delivery of consistently uninspiring numbers.
Can we trust the CEO and THG to end āthe Cycleā?
We shall see.
GLA
Re-posting this as I fear we are in the later phase of the cycle - letās call it the giddy phase.
The Cycle18 Oct 2023 08:33
Bad set of numbers.
Negativity and butchered share price.
LinkedIn rantings, further butchering the share price.
Justified criticism of MMās failings.
Spats between the devout followers and those calling it for what it is.
Positivity builds through speculation.
Positive trading updates.
Share price ticks up
Positivity builds
Talk of Ā£7 per share returns.
Share price ticks up in anticipation of results.
Bad set of numbers again.
Rinse and repeat.
Another year passes.
How low can it go?
They did, and I expect them to turn that stock and the trade receivables into cash. Trade receivables unlikely to deliver 100p in the Ā£ but yes, I still expect this to pay for itself.
Iām not negative about the deal. Iām negative about the LinkedIn post which I feel has driven the āoverpaid for itā perception. That perception drives negativity which adversely impacts the share price. It was unnecessary imo.
In fairness, this isnāt a bad deal because of what it gives THG if it can be bedded in properly. I appreciate paying 20m in a fire sale may be viewed negatively by some, but I suspect that in 12 months time, it will be seen as a very good piece of business.
The linked in piece from the ceo is not so good. Did he really need to say there was only one other bidder?
That post in my view helps to drive the āoverpaid for itā sentiments. He could have still extolled the virtues of Ingenuity without stating it was a 2 horse race in a fire sale with no other interested trade purchasers.
It is unnecessarily hapless and has tarnished a rare and relatively positive RNS imo.
Ticking up pretty well. Strong Christmas numbers may see it nearing Ā£2 before we go into 2024. Hope so, itās been a grim 2023 for JD.
I fear the price will get worse before it gets better. The dividend is too high imo.
How much did it cost? I need to know the price of stupidity.
Is it time to bring Peter back?
1.20 and with a focused and able ceo, we should get there fairly quickly.
Itās time for the ceo to go. Nothing else will spark the share price. Heās a bust flush, a destroyer of value, a baby trying to hold on to his baby.
Enough is enough.
Bad set of numbers.
Negativity and butchered share price.
LinkedIn rantings, further butchering the share price.
Justified criticism of MMās failings.
Spats between the devout followers and those calling it for what it is.
Positivity builds through speculation.
Positive trading updates.
Share price ticks up
Positivity builds
Talk of Ā£7 per share returns.
Share price ticks up in anticipation of results.
Bad set of numbers again.
Rinse and repeat.
Another year passes.
The share price is remaining stubbornly low, Iām expecting it to break out on good Christmas numbers. The Board is doing all the right things so Iād hope to see that translate into a significant upward swing over the next 6 months.
Short term fair value is a Ā£1. It will get itself there by Christmas imo but itās a long way back from where it ought to be. The Board needs to step up and create value. Buy backs will impact the dividend but a bit of short term pain may be in the interests of long term gain.
The Trappist Monks of commerce aka the THG Investor Relations Team should have recruited Sarah.
Somebody in IR also needs to tell the CEO that accentuating words when presenting in an effort to make bad numbers sound good, doesnāt work.
The share price moves up on good news, good numbers or bids. It doesnāt move up through moaning about shorters, moaning about the evil stock market or repeatedly presenting poor numbers. The CEO needs to either deliver or get out of the way and let somebody better have a go at creating shareholder value.
Spot on. Stop railing against the market, deliver some credible numbers and a strategy which captures the imagination of investors. That is what a grown up and able ceo would do.
I agree, maybe they need to start looking at share buy backs?