The worst could be over for The Hut Group, which has been in a downward spiral since a damning report caused its shares to collapse.
The Manchester-based group, which sells clothes, make-up and protein shakes online, is valued at £2.2billion, having hit £9.8billion when shares peaked at close to 800p in January.
Investment service The Analyst highlighted what it believed to be the overvaluation of THG’s tech platform Ingenuity, a key part of the business, which sent shares tumbling.
In his attempt to stem the losses, founder Matt Moulding only added fuel to the fire and since September shares have fallen more than 70 per cent.
Shares closed on Friday at 190p, far below the 500p offer price when it listed in September 2020.
They are even further from the 796.2p they shot to when THG was seen as a darling of the stock market. But it was reported yesterday that The Analyst had withdrawn its advice to short, or bet against, the stock, signalling a belief that it has no further to fall.
Investors will be relieved and all eyes will be on the stock today to see if it begins the long climb back.
This post first appeared on Dailymail.co.uk
