The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Yespsb. Do you own shares? I have sympathy for anyone who lost money on THG shares, but there is always risk to investing. I too am a bit down, but no so much that I am angry. Emotion isn’t a good thing in investing. THG has never been an ordinary plc share, not at IPO - golden share, MM founder with big shareholding, controlling interest with long term PE style holders etc. Investors need to assess these risks when they invest. I believe these issues are leading to the SP being well oversold. Nobody will be feeling the pain of value distruction more than the long term II’s who could have got out in full with KKR. If they lose faith in MM to recover value, they will remove him and you will get your wish. The clock is ticking, deliver or cheerio. In either scenario SP up in my opinion
Understood LD1973. Agree more info out as per Kelso request would improve short term share price. However I believe MM is limiting it to strengthen his negotiating hand with interested parties, so not great for short term share price, but better for those looking to maximise medium term value. Though I do believe he is running out of time to deliver an improvement in value to match his rhetoric
So many furious non shareholders, incandescent with rage at not being diluted on the shares they don’t own. See through their games.
Oversold. The Board is executing a plan to improve value. Long term shareholders/Insiders/Key Supporters still seem to be aligned. Charles Allen is a heavyweight in spite of FUD’s attempt to smear.
With Kelso in play, if II’s break rank, moves will be made. But for now, II’s still support MM, and so do I
@hardwell I thought you topped up at 60p? Why did you do that if he is a laughing stock?
Here's my perspective:
THG comp strategy has been for many years to pay employees below market bases, minimum benefits, performance related bonuses (discretionary), but with the carrot of equity for high performers who are business critical. That was how they recruited good talent, retained those they wanted to, and managed their cost base down as a privately owned growth business. I don't think that has changed as a plc, albeit equity incentives have to look different as a plc. A large number of loyal long term employees who could have earned more elsewhere but were tied in with equity over the years, and finally had their pay day at IPO - only to see the value of their shares smashed during their "lock in" period along with everyone else. Many are PI's now along with others on here hoping for a share price recovery. MM see's equity incentive as a powerful driver of performance, no argument with that from me as long as it complements sensible base salaries - which it does. Trading has been crap for 2 years, so no bonuses, probably no or minimal pay rises. Equity is a sensible way of continuing to incentivise key people without draining cash from the business. And by the way it dilutes all existing employee shareholders, as well as PI. So I have no problem with the employee trust, as if he can't retain the loyalty and commitment of the team, then £2 a share is a dream.
If you want to have a problem with the awards then maybe Saunders (limp wristed auditor adding no value) or Gallemore are fairer targets. But issues predated Saunders and CFO's get LTIPS. So then it is just Gallemore - I don't think he should have got anything, but it isn't a huge number of shares between them, and they are going to be busy if there are capital events etc.
Best wishes to crafty, I know you feel like a line was overstepped this morning, but don’t let them get you down… and your steady stream of news flow is warmly received. I’m sure I speak for all LTA’s when I say come back soon. YIMAB
Wonder if the major holders get as hot under the collar about share awards as the PI’s on here….no didn’t think so
I don’t have a problem with staff and even Sanders being incentivised. Gallemore on the other hand shouldn’t get a look in. But small beer if they can get the share price up, so not going to sweat over it.
@ste I know we lost you to the darks side some time ago, but I feel the good in you. It’s not too late to do an Annakin and change your ways. You did once love MM, and you can love again.
We’re nearly 61p. Cue @ Ste to post on his life story…..rejection
Can see why it’s deeply personal for Ste. I hope it’s not making him a bit blinkered
In fairness, I kinda like Ste and in his glass very empty kinda way. Although I do find it a bit cheeky him calling me a ramper, when he was talking up this share on this very board at 2.05 in Dec 21. That actually cost people a lot of money.
Crazy the musicmagpie ended up on the LSE, but at the time listed markets we offering exiting PE many multiples above another round of PE..how the market has turned!
Dearest Ste who loves to post FUD and conspiracies all day long, just to be clear we don’t know if Vivek walked or was pushed. Pure speculation on your part. One thing is for sure, if Ingenuity doesn’t start consistently landing enterprise clients then there isn’t much upside in this share. MM neck is on the block, whales needed to save his bacon. Is that ramping?
1. Steve has he walked? We don’t know the full story
2. Actually I think THG have handled this in a cack handed manner. I would have expected them to put out a proper statement out instead of silence. I expect news leaked to press, so delighted that the market hasn’t got the hump this morning. I know you love to celebrate a 1p sell off, but it’s small beer.
3. I am allowed to think that a CTO with quite a corporate background may not be the ideal profile to grow Ingenuity. Where is the ramping
And for the record Vivek may have done a perfectly good job for 2 years restructuring Ingenuity, running off unprofitable business and pivoting towards enterprise clients..he just might not be the right guy to drive top line growth now that is done
We don’t know what’s gone on with Vivek so no point speculating. It is the job of the Ingenuity CEO to drive performance of the division, and in Ingenuity’s case it needs top line growth. So personally I would rather have an experienced scale up CEO overseeing it with a background in developing B2B relationships and a black book of contacts, than a CTO in his first CEO role. Just my opinion
Come on guys let’s use this thread. I’m OK with Vivek going, Ingenuity needs a salesman/marketer driving it and glad to see a grown up in Ingenuity in Crane who has made his money already so won’t be a yes man for MM which is what is needed
Well looks like Vivek the blue chip CTO wasn’t the man to scale Ingenuity and looks like the market already knew it, so all eyes on Mr Crane. His CV appears to be a better fit for the job in hand - salesman/entrepreneur who has made it happen more than once, including the US. Last chance saloon for MM though….
Well mr market either already knew Vivek was gone, or is totally indifferent!