LM portfolio as at 05/11/2021:
Code | Sector | Date Bought | Cost | Value | Gain/Loss |
---|---|---|---|---|---|
LM026 LM026-2 LM026-3 |
ETF | 14/10/2020 09/12/2020 06/07/2021 |
£3430 | £3920 | 14.24% |
LM028 LM028-2 |
'No specific industry' | 16/11/2020 10/08/2021 |
£2280 | £2740 | 20.41% |
LM033 LM033-2 |
Health Care Equipment & Services | 04/01/2021 03/08/2021 |
£2320 | £2480 | 6.96% |
LM034 | Food & Drug Retailers | 18/01/2021 | £1020 | £1200 | 17.22% |
LM035 | Food Producers | 19/01/2021 | £1040 | £1080 | 3.89% |
LM037 LM037-2 |
Life Insurance | 03/03/2021 05/07/2021 |
£2290 | £2600 | 13.92% |
LM038 | Banks | 10/03/2021 | £1020 | £1140 | 11.74% |
LM039 | Pharmaceuticals & Biotechnology | 30/03/2021 | £1030 | £1090 | 5.87% |
LM040 | General Financial | 27/04/2021 | £1020 | £1260 | 22.77% |
LM041 | Real Estate Investment Trusts | 27/07/2021 | £1270 | £1400 | 10.08% |
LM042 | Construction & Materials | 27/07/2021 | £1270 | £1330 | 5.09% |
LM043 | ETF | 27/09/2021 | £1260 | £1300 | 3.73% |
LM044 | Support Services | 27/09/2021 | £1270 | £1190 | (6.31%) |
The Hut Group (THG) has its intial public offering in September 2020 and from what I can gather the shares launched at 500p. At one point they got up to nearly 840p.
On Friday the closing price was 203.8p.
In the last month alone THG shares are down 53.13% but this fact appears to be lost on a number of posters on one financial forum.
Reading through the comments is an education in the worst investor traits. Some may say that people never change and if ever there was an excellent example of this being true, this could be it. This thread would not look out of place on the fool.co.uk boards in 1999 during the height of the dot com boom.
I'll sum it up through examples of where these THG holders have gone wrong. So much money has been lost because of their bad assumptions and denial.
(1) In terms of mistakes, there aren't many that are more hazardous to your portfolio than buying more of a declining share because it "surely can't go any lower". THG holders on this board are continually posting that they've bought more because the price surely can't fall any further. Only for it to continue falling.
(2) On similar note they are prone to buying more because "£2.82 looks cheap". Turns out 282p wasn't cheap and if they had just waited two weeks they could've bought even cheaper.
(3) Then there's buying more because they initially invested when the price was higher so if they buy more now then it brings the average price they paid for THG down - which is generally known as "averaging down". This always seems like a good idea but if the share doesn't rise again then you've simply thrown good money after bad.
(4) But there's hope! Some directors bought more shares today and they must know something. The price will surely go up... No, these directors have no control over the share price and fall victim to the same investor pitfalls as us mere mortals.
(5) Some try to justify their purchase of more because "sellers are getting tired" which obviously means we'll be back at 500p soon. How anyone could determine that those who are short are "tired" is beyond me. Sounds like wishful thinking.
(6) Good old bottom-picking could be seen several times in the thread. This means THG holders buying more shares because "I reckon it will bounce from here". Maybe at some point they will guess right. Or it could be in the doldrums for years. It's never nice to have to see red numbers everytime you log in to your broker's account.
(7) It was sad to see a new investor holding on because "I'm not taking a 50% loss". He or she could've got out at 305.80p the day they posted that. Price on Friday was 203.8. So by refusing to take a 50% loss, this investor is now sitting on a 65% or more loss.
(8) One forum member was buying as the price fell because "if this was on Nasdaq it would be a 20 billion dollar company at least". I hate to point out the obvious but it isn't on Nasdaq and due to the way the shares were issued THG doesn't qualify to be in the FTSE 100 or FTSE 250 either. Justifying purchases on the assumption that in another dimension the price wouldn't be falling is certainly a unique way of looking at things.
The discussion about THG goes on and on.
Whatever happens the fact is that the share price has dived from 637p at the beginning of September 2021 to just over 200p this week. Something is clearly wrong with THG and the way it is regarded by the market. People can argue about what it "should" be worth over and over but right now, today, each share is worth £2 and change.
And it isn't out of the question that it continues to fall.