THS Share Price18 May 2021 10:49
Investing in shares that we are expecting to re-rate can be very frustrating. The SP of THS whilst nowhere near what we would expect is actually not doing too bad . We often compare it to SLP which over the last 3 months is up 9% and THS is up 10%. 10% in a quarter is not bad. of course we are hoping for more.
Buys are generally very strong but so has been the selling of institutional holders over the last few months. Volume needs to increase now that the large sellers are gone or almost gone.
We are now trading on the lowest P/E ratio since 2015. Since 2017 the yearly highs have ranged from 7.9 to 27.2. But the P/E ratio is only one valuation, another used for miners is EV/EBITDA. EV/EBITDA has been the worst performance indicator since the beginning of the year against other well used valuation metrics.
THS is still recorded against it's 2020 figures - unfortunately it still does not show up on many key screens used to pick shares - this will change after the interims if they are where we hope they will be, but again it will take time.
THS is covered by 5 brokers - one has it as a hold, 2 as a buy and 2 as a strong buy. They must be reasonably confident on the PGM prices including Rhodium - but a word of warning - if you think that these brokers know what is going to happen to Rhodium - think again. There are people on this board that have many times the knowledge of the PGM market than most brokers of small companies have.
Miners still don't fit into the ESG criteria, so miners are rebranding. The Metals and Mining sector is changing. Mining companies are re-branding as the champions of the ESG revolution, they are now precious metals companies or material solutions companies - again branding takes time.
Also note that the market is not great at the moment - it can't seem to figure out if inflation is good or bad. That point makes me smile. Shock horror that inflation is rising after the world economy was pretty much shutdown this time last year. Inflation is good for commodity prices, it's just bad if you have large debts. THS have net cash.
My point is that THS is unbelievable value that the interims will show in black and white. THE PGM prices are strong - I can't seem to go a day without reading about the increased deficits - Platinum was yesterdays with the deficits almost tripling from where analysts thought they would be a few months ago.
We have an interesting few weeks ahead when the interims show what we already know.
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