Thg Share Discussion Threads

[my retirement fund] 29/1/2022 08:00

Looks like there has been plenty of pre and post floatation corporate fraud here. A Pateseri Valeri! Clearly another one for the dustbin.

[sankshiela] 29/1/2022 07:44

Mug = goforgold= mug
It’s a margin call on Goldman loan called in due to share price drop
MUGS

[goforgold1] 29/1/2022 04:07

Could be capitulation Monday . Wait till Times writes on Sunday that's 100% is going to happen. Another CON Share

[average down mug] 28/1/2022 23:13

I think carnage Monday 🤡☝A039; Hate to say it I’m not short never ever have I ! But will say this! Find the bottom and load up! Gla

[boix] 28/1/2022 23:00

It starts

MARKET REPORT: The Hut Group crashes again as its commercial director Steven Whitehead offloads £8.5m worth of shares
By ARCHIE MITCHELL FOR THE DAILY MAIL
PUBLISHED: 22:01, 28 January 2022 | UPDATED: 22:01, 28 January 2022

The Hut Group crashed again as its commercial director offloaded £8.5m worth of shares.
Steven Whitehead spooked investors by cashing in around half his stake.
THG shares are now worth about a quarter of their 500p IPO price and just over 15 per cent of their all-time high close to 800p.
Directors often pick up shares in their companies when prices are low as a sign of confidence the stock will recover.
In November non-executive director Zillah Byng-Thorne and her husband bought £100,000 worth of THG shares, with the stamp of approval boosting them 4 per cent. But yesterday Whitehead sparked fears he could have been cashing in before the stock, which has shedded 45 per cent so far this year, falls any further.
The company said Whitehead's stake was held by THG founder and chief executive Matt Moulding's investment vehicle, FIC Shareco. Shares fell 7.1 per cent, or 9.6p, to 126.5p

[boix] 28/1/2022 20:33

If GS transacted the sale they would definitely have used their own dark pool.
That’s part of the service they provide to all their clients - especially the large ones.

[kooba] 28/1/2022 20:15

Also not impossible that GS did transaction over a few days then booked out on the 26th. They could have taken them as principal at vwap on the day..but normally if being sold as collateral against a loan a transaction would be through market to avoid subsequent argument on level.

[boix] 28/1/2022 19:54

Probably used the company’s broker ‘dark pool’ - so it didn’t disturb the general market price at the time.
Maybe that’s why he didn’t personally do the transaction.
If he had just sold it into the general LSE market the price would have tanked - even if he had tried to place it or divide it up?
It had to be disguised in a broker’s dark pool.
Makes sense.

[kooba] 28/1/2022 19:50

Good spot on security disclosure ,well we now know who the counter party is and we know the date and price of transaction Price(s): 122.64p Volume(s): 6,926,161 -------------------------------- ---------------------------------------------- d) Aggregated information N/A - single transaction -------------------------------- ---------------------------------------------- e) Date of transaction 26 January 2022 Looks to me like they sold them into the market and booked out at a working average over the day.

[lonrho] 28/1/2022 19:35

Since they were secured with Goldman Sachs they will either have sold them or kept them. See 12th August 21 press release.

[boix] 28/1/2022 19:12

I know he had the director word in his title but maybe he is not actually an official company director?
Although likely if US markets rolls over anytime soon we will sink below £1 especially if the weekend press stick the knife in again?
The sale shows absolutely no confidence in the company from senior management.
Surprised the CEO didn’t buy them? - Or at least some of them?
This is an unbelievable story - If you put it in a book no one would believe it!
Not just this incident but the whole saga.
How low will this go 50p???? - let’s hope Putin doesn’t go into Ukraine
I am not short anything as don’t believe in it but with THG …. Maybe I should change my mind?
I sold my small holding at 133p as a loss last Monday.

[bldm] 28/1/2022 19:08

Thanks kooba. Same here - just trying to read the situation. I believe the lock-up of THG was about 6 months. I don't know if there is a different lock-up for insiders who are part of management - I can't imagine so. In any case, 12 months would have been 20-Sept-2021 when the price was £6.41.

[amaretto1] 28/1/2022 18:38

All good posts .... but the market is not convinced...R any of u surprised...What's coming next ... maybe nothing or maybe their is !!!Not good.

[kooba] 28/1/2022 18:37

There can often be reasons why insiders are restricted in dealing whether in the market or off market would still be personal dealing so his colleagues and major holders may not be able to deal. If only a few days notice of foreclosure then not easy to agree such matters anyway. Look I'm just guessing at what has transpired maybe he just wanted to dump his holding down here because he thinks they are going down...but I think that is the least likely scenario.

[kooba] 28/1/2022 18:28

Not entirely sure my hypothesis is correct just my guess at what has happened. As to whether senior executives were able to sell when the stock was substantially higher another matter , often insiders and senior management will have a lock in when a company IPOs for 12 months plus ..so they don't all run for the hills!So he might have felt very wealthy and wanted stuff but couldn't sell ..might have taken a 'modest' loan against holding at the time..not sure many folks thought they would trading here not so long ago.

[bldm] 28/1/2022 17:59

Appreciate your informed (and informative) thoughts kooba. Thanks mate.

The fact that he took out a loan and didn't sell stock reads as a positive. At the time, he could have sold around 20% of his holdings to get the equivalent of the loan. An experienced PE guy who's been a director for 12 years didn't sell his shares when they hit close to £10 at some point is a sign that he believed they will be going up. This is in support of a thesis that THG is undervalued - at least he thought so at the time when the price was >£5. Considering he had to sell the shares he couldn't post more collateral so I deduce the value of his THG shares is most/all of his net worth. He must have been very convinced THG shares will be going up not to sell some and diversify. A bit silly if you asked me.

As wrong as his decision is in hindsight, it means that he thought at the time THG shares are going to go up and it means that he got caught out by the fall. A person like him should be aware of any "creative accounting" if it existed at the time and in such a case, I would expect him to dump his shares after the IPO especially when they hit prices such as £9. This supports a thesis that the share price is hit with a mixture market over-reaction/scepticism and economic downturn (inflation, rates, geopolitics, Brexit).

Not saying are any good but my worry is "creative accounting" or fraud with THG. If I'm taking risks and bets, I'd like to know what I'm betting on. For example, I'm 99.9999% sure there will be no war in Ukraine so I'm happy to bet on anything that falls as a result of the situation.

[space_bob] 28/1/2022 17:58

Interesting development. I've had a rough couple of months with my portfolio, but imagine it for this guy who has just sold something for £8million which was worth around £60 million a just a few months ago!

It does raise a few questions
- if a buy out was planned MM would have bought them.
- the share price rose on Wednesday when a large chunk of shares were dumped.
- could possibly be part of an ongoing 'clean up' of bad marks against THG and actually the holding has been transferred into some kind of murky trust so that it appears MM has less of controlling stake in THG. Bear in mind MM is currently dumping the property which clears another bad mark.

[kooba] 28/1/2022 17:51

A while ago now but brought the practise into attention..you only have to disclose though if you are deemed a PDMR..Whitehead although not main board is one of the most senior executives so how he is not a PDMR is a question..but officially would not have to disclose taking loans with stock as collateral.https://www.managementtoday.co.uk/carphone-boss-david-ross-quits-amid-share-scandal/article/867899Also see Quindellhttps://www.standard.co.uk/business/business-news/quindell-digs-deeper-hole-on-confusing-directors-dealings-9851100.html

[kooba] 28/1/2022 17:44

Nothing to do with the company per se...only read through is that if one of the founders, a senior executive is in a position where they are forced to sell down their holding at such a time is whether their judgement is that sound..the seller was not main board and their personal finances do not overlap with the company's accounts. My thoughts are this guy Whitehead is not having a good day and did not want to have his shares sold down here. Just my take..maybe more will come out. Same situation happened with one of the founder directors of Car Phone Warehouse and i think many companies where directors want to take money out for the good things in life without selling equity....they can often end up selling equity whether they like it or not!

[bldm] 28/1/2022 17:41

What other smoke and mirrors with THG's accounting are you referring to.

[amaretto1] 28/1/2022 17:36

Todays RNS is the reason the city don't trust this coming... it's all smoke and mirrors in the accounting department