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All 3 THG Divisions are USA Ready - Cmon Matty get the deals done :)
These LSE blues
Aren't melting away
Let's make a brand new start of it
In old New York
If we can make it there, we will make it anywhere
It's up to you, New York, New York
----------
Ashtead: FTSE 100 giant’s potential New York switch raises more questions for London
https://www.cityam.com/ashtead-potential-new-york-switch-for-ftse-100-giant-raises-more-questions-for-london/
Analysts have warned that FTSE 100 giant Ashtead’s potential switch to New York’s stock market could strip London of one of its best-performing names, once again raising questions over its status as a trading venue for US-focused firms.
The firm, which rents heavy machinery to the construction industry, is understood to have instructed City advisers to examine the possible benefits of moving its listing to the US.
Ashtead is the 25th-biggest stock on the blue-chip index with a market capitalisation of £24.7bn.
It is just one of eighteen FTSE 100 firms that has grown its dividend every year for the last decade, while it ranks in fourth place for capital returns over the same period, said AJ Bell investment director Russ Mould. Its shares are up more than 500 per cent over the last 10 years.
The London Stock Exchange (LSE) has been battered by a slew of big firms ditching their listings in the capital for better returns overseas.
In recent years, names that have switched to New York include gambling giant Flutter, building materials supplier CRH and plumbing group Ferguson – all with large North American businesses.
New York often attracts firms through lofty valuations and a deeper pool of capital. However, Mould noted that Ashtead actually trades at a higher valuation than its closest US-listed peer, United Rentals.
“This is also encouraging for those investors who will stick with Ashtead should it make the switch,” he said. “Management presumably feels the change is appropriate for good, sound business reasons, not just because they feel the share price is too low.”
Crafty if you read the full paragraph including the "my dogs got more" comment it doesn't look like Nutrition / MyProtein will be going across the pond any time soon so please stop ramping it. It is embarassing.
He dismisses the idea in that paragraph. Read it.
Furthermore he also points out that he barely ever travels to London so what chance New York. All understandably so.
The same profile article also seems to be highlighting that he doesn't have enough present wealth to take it private due to the poor share price performance since IPO.
That is how I read it.
Why are we still banging the drum about dogs? Let's move on guys....
Raspberry Pi is doing okay this morning, amazing little tech company.
FTSE down 1% we are holding our own (insert thumb emoji)
NY listings are very expensive, you have to release key finial data every 3 months mandatorily also, that’s quite a lot of work. You then need to do regular arbitrage to ensure your USD and GBP SO’s are within a similar range sometimes to prevent share price manipulation between countries and currencies as well. (Again it’s all costly and THG lost £185 million last update, so it’s not exactly awash with resources and cash. NY sounds good but it’s not some easy to do cheap thing….
..missed this one, few days old now but we know EU has followed.
Bank of Canada reduces policy rate by 25 basis points
https://www.bankofcanada.ca/2024/06/fad-press-release-2024-06-05/#:~:text=The%20Bank%20of%20Canada%20today,policy%20of%20balance%20sheet%20normalization.
@Monty If he had no intentions of relisting in USA then he wouldn't have spent £15M getting all 3 divs USA ready.
The primary reason for leaving LSE is it is not fit for purpose, he cannot grow his businesses there. Shorts are in complete control and LSE SP is not a true reflection of the SOTP
Not just THG but multiple companies and multiple newspapers ALL saying the same thing.
Back in 2021 MM said he was going to separate and relist, but only when the time was right. Look at the global macro over the last 3 years and you can see why it has been delayed.
If you listen to the THG webcast earlier this year he says in the Q&A:
'Now as the capital markets start to improve THIS YEAR and as interest rates start to fall and inflation passes away and capital comes back into the global economy then the optionality increases month by month.'
He does say - THIS YEAR and the requirements are getting better month by month
We are currently in June so just 6 months left for him to make his move.
Roll on the AGM :)
Totally agree Crafty, if CEO is looking to refinance the group/strategic transactions, the timing will be driven by getting the right deal(s)/valuation(s) for existing shareholders. We are all aligned with MM and the 65% there. This issue for a lot of shareholders is patience - Kelso and a lot of PI’s want a quick buck. Last year wasn’t the year for a deal, this year is, and I believe MM will want to address the valuation this year so that he can invest for growth again (including M&A) which is off the cards currently due to THG’s lowly valuation.
Crafty you are right..the LSE is in complete meltdown, companies are abandoning London either going private or taken over etc because the FCA and LSE have lost control, the shorts are fully in control of London markets. No IPO worth mentioning for over 3 years, £trillions have left from Pension funds who have switched to USA and other international exchanges...another disaster overseen by the Tories who used to be on the side of investors and entrepreneurs. Jeremy Hunt's CGT tax raids haven't helped either. JMO ADYOR!
Good points Monty, it's got a bit absurd how the USA has almost become a magic elixir potion on these boards, even for companies with very little presence in the country. Practically speaking, last year US only accounted for 18.5% of THG sales - and that was down from 19.9% the year before. If it's already a small proportion of sales and losing market share in the country, forget it.
That's before we get on to how US shorters and analysts far more aggressive than UK ones, they could rip the likes of Moulding a new one. To be brutally honest it's not likely they'd even care enough though, he'd just be a small fish in a very big pond.
I thought Wellington was a US company. Not like US shorters can't do it here already and don't already specifically target anything not american
No answer OSG? One Ste Gone another takes his place
Maybe every company on all the LSE exchanges should move to Dublin as much better environment for business? 🤔 . Labour, Tories, Greens, Liberals not business or investor friendly 🙄
Unfortunately successive chancellors starting with Gordon Brown have bitten the hand that feeds them, by increasingly punitive tax and investment regimes for companies and investors..They took the golden egg but the goose🪿has migrated to New York 😕
I think it was Gordon Brown first raided the Pension Industry with Dividend Taxes and Taxes on company pension surplus etc as a typical socialist ideal, but unfortunately the markets went South and millions of pensioners lost out because the pension funds had to close. Every chancellor since hasn't done any better. Unfortunately this is all part of what we are seeing now with the exodus of companies from LSE and no new IPO's. 😕 JMO Adyor!
https://www.thisismoney.co.uk/money/comment/article-13041677/HAMISH-MCRAE-Time-fix-Gordon-Browns-pension-errors.html
Be interesting to see whether Labour blocks the Shein listing. Lot of opposition has been building to it recently. Even the great Nigel Farage has said it should not go ahead. If it does not and say, another of these titans leave, then ..well..
X404 THG would not list on Wall St to grow its percentage revenue sales in USA, the two are not connected.
They would list there to release the true value of the SOTP, which would be many multiples of where we are now.
You do want the share price to go up, don't you?
Good for retail, BRBY just took off ..
The consumer price index was expected to increase 0.1% on a month basis and 3.4% from a year ago, according to Dow Jones consensus estimates.
https://www.cnbc.com/2024/06/12/cpi-report-june-inflation.html
When you think about it, the Fed is the odd man out, most other countries are looking to cut sooner rather than later.
UPDATED WED, JUN 12 20248:43 AM EDT
Dow futures jump 200 points on cool inflation report ahead of Fed decision:
Crafty, of course he doesn’t!
Only problem with a wall street listing is that directors risk jail time if they mislead...... Perhaps we will stay here.