- Hut Group (THG) shares slumped 35 per cent yesterday as analysts reacted negatively to a capital markets day yesterday
- Management reportedly did little to rebut short sellers' allegations against the company
- And there are several reasons in the accounts for scepticism around the company
Shares in THG (THG) - 'The Hut Group' - slumped by more than a third on 12 October as analysts and investors failed to be convinced by a capital markets day held by management. With the company under attack already from short sellers, one may have expected management to come out swinging but according to reports there was nothing of the sort with management preferring to focus attention on the company's Ingenuity technology and logistics platform. And if there is one thing the market hates, it is uncertainty, hence the brutal share price reaction yesterday. So, what have short sellers, in particular my friends at boutique research firm The Analyst, hung their hat on?