Thg Share Discussion Threads

[sankshiela] 17/4/2022 07:21

If anyone is more interested in a less bias interpretation of the article then F ing ugly here - the full article and good dialogue is on the LSE THG forum
Pug ugly - you re a mug mate

[pugugly] 17/4/2022 07:13

Headlines already posted- A bit more from the ST before U hit paywall

"‘Late payments’, staff at ‘breaking point’ — more trouble for THG

THG has suffered a fresh blow after the founder of one of its leading beauty businesses resigned and brands complained of late payments. Alexia Inge, co-founder of Cult Beauty, which THG bought for £275 million last year, emailed staff this month to say she was “exhausted to the bone” and would be leaving"...

Mesaage received - THG management not very streetwise if they pay that much for a brand and and then lose senior management - Management who - if one believes the stories - were responsible for delivering the brand's momentum - or were they?

[1apache] 16/4/2022 21:31

I had a similar issue when I sold my business. It’s a non problem. Not even on a scale. What is important is that the company has decent net revenues & governance, a good product base and strategy. If it can demonstrate that on Wednesday, those who are holding will be. Dry well placed. A story like this won’t effect any of that. It points to shorts trying to buy time and damage limitation to me

[jomac2412] 16/4/2022 21:21

I have written to Investor relations stating the above , its ridiculous how slow they have been in refuting false allegations in the past!

[jomac2412] 16/4/2022 20:12

Surely THG should be out with a refutal to this claim immediately and not wait till the share price gets trashed like they have with all the other false claims that have been made in the press ,Numis , Telegraph etc ! its of no use to us shareholders to find out that the claims are false months after the price has been trashed .

[1apache] 16/4/2022 20:07

To be honest, I’d say pathetic.

[hamhamham1] 16/4/2022 19:57

It's a funny article from someone with a beef, hilarious.

[boix] 16/4/2022 19:34

Let’s hope you are right.
Everything closed Monday so hopefully just fish & chips wrapping come Tuesday.

[1apache] 16/4/2022 19:33

Waving a small stick at an elephant. Non issues when a stock is undervalued by multiples. The same people/institutions that have tried to short the life out of this stock will happily ride it back up.

[boix] 16/4/2022 19:31

On the positive the article might provide an opportunity to add into weakness in the run up into the results on Thursday?
MM seems to have a lot of powerful enemies.

[hamhamham1] 16/4/2022 19:25

Hilarious grudge article, all fur coat and no journalism.
PMSL.
Probably failed their audition for Press Gang back in the day.

[boix] 16/4/2022 19:10

Very true let’s hope it doesn’t stick this time.
Thursday is make or break day.

[boix] 16/4/2022 18:44

The THG valuation attributes little value to all the loss making divisions.
From memory Cult Beauty division was profitable at least before THG acquired it in Sept 2020?
In fact last Nov MM suggested the division would be sold off - That scared the market as it made a profit unlike the rest!
Happy to stand corrected if that’s not the case?
Either way won’t help things in the run up to results.

[dealy] 16/4/2022 18:38

current market cap of THG assigns almost no value to that division anyway

[boix] 16/4/2022 18:18

‘Late payments’, staff at ‘breaking point’ — more trouble for THG
Co-founder of Cult Beauty, bought for £275m last year, announces departure

More trouble just been published behind paywall on front page of tomorrow’s Sunday Times business section concerning late payments and poor morale at THGs Cult Beauty.
Co founder of Cult Beauty left last week and whilst that has already been reported this is the story behind the resignation.

History repeats itself!
Extremely bad timing.

[london07] 16/4/2022 10:53

Share price hasn't lost over 90% because of targets missed. In fact IPO target for 2021 revenue was £1.7 Billion, they did £2.2 billion!

2 reasons even then completely over done. 1. They flagged governance issue, which is now sorted with a top calibre chair. 2. MM went against the city, and this shows you don't do that. To show him a lesson, they have decimated the share price.

There is no justification to be where we are today. True value will be realised soon. They just have to outline their plan for the business which everyone understands.

If this continues, this will go private. MM alluded to this in Nov, share price was over 200p, and 6 months later we are where we are. As Liberum have also indicated, if it stays like this, no doubt some corporate activity will be taking place. Patience and sit on your hands.

[hamhamham1] 16/4/2022 09:00

Yep. The share price isn't where it is because of the growth and revenue figures, far from it.
Its here because the market didn't like MMs practices. And these are being addressed (MM has realised that he must play by the rules), thus the share price will reflect the gradual acceptance by market that it's getting run the way they want it.
Like I said, sit on hands, nothing more, nothing less for me.

[1apache] 16/4/2022 08:51

The stock is so undervalued that just a decent statement from Charles Allen should be enough for a substantial ramp. The last set of results led to a disproportionate drop in stock value mainly because of the fear factor surrounding the stock and we all know where that came from.

[sankshiela] 16/4/2022 08:33

They state that h1 would be tougher in the q4 update but I don’t see any surprises in value revenue as prices have also gone up. I would expect margins to be more tough and I will be watching gross margin for improvements and then the fall through to net

[hamhamham1] 16/4/2022 07:52

In that article, the analyst says a key point will be whether THG backtrack on their forecast of 22-25% growth for this year.
Jeez, that forecast was done in January, before Russian invasion (and its global knock on effects), so I think it highly likely that the 2022 forecast will be reduced, alongside most all other companies forecasts in the sector and broader market.
If they say a 10-15% growth forecast then that would still outperform most all others in the market.
It was a stupid statement by the 'analyst' really, but hey anyone can call themselves an analyst nowadays.
*This was written by a self-proclaimed ADVFN board post analyst.

[kubera369] 15/4/2022 22:18

THG set for first major update since appointing heavyweight chairman Charles Allen in effort to win back trust of City

[1apache] 15/4/2022 14:23

Not sure that many current holders would be too open to a PE unless it was several multiples. There’s too much latent potential. Plus MM has golden share control. If the market values the stock correctly as it stands and not it’s current forced sale levels, we should see multiples quite quickly. As you say, anything can happen.