HIT - HiTech Group

[Lizard]

This is my craziest punt stock of the season due to its low market cap ($1.55m at 5cps!) and lack of liquidity. Have decided to give it a thread in the hope that the HY result will be worth writing up here later!

HiTech is a recruitment business, specialising in ICT. They listed too late for the tech boom and languished from the listing price of 70cps down to a low of 1.5cps. However, they have remained borderline profitable and never gone back to the market for more cash.

I picked up 100k at 2.5cps after coming across them on the net-net thread, so it's not going to make or break the bank! However, I am interested to see how it plays out, given the difficulties the liquidity imposes.

At last report, they had cash of $535k and other liquid assets in excess of liabilities totalling $1.5m. They reported a small profit last year ($136k with normal tax). However, this year is likely to see a substantial increase on that.

Firstly, at the agm they reported a 49% increase in first quarter revenue and $200k NPAT for the first quarter alone (plus gains on listed investment assets). They also forecast FY NPAT of $500 - $750k, though I would not normally take too much notice of a forecast that early in the season for a minnow like HIT.

Secondly, the federal tender database shows a dramatic increase in contracts awarded to HIT - 2009 year jul-dec period showed orders totalling $1.1m, while for the 2010 year jul-dec it sits at $5.2m... given that last year HIT total 12 month revenue ran at $5.5m and AusTender showed contracts for about half of that, the AusTender indicator is for a pretty impressive increase. If the pattern continues (and so far January has $1.2m of orders), then it is likely HIT revenue will at least double and perhaps triple, with NPAT at least $750k and perhaps closer to $1m mark.

So I am interested to see both how the half year result is tracking and how far the share price can move. Ideally, it would be good to see a dividend paid, and up to 1cps might be possible, although this would be more likely at FY.

However, ridiculously cheap as it is, no stock gets this illiquid without a reason, so there has to be a reasonable chance I'll get my fingers seared - if not by the result, by the lack of a market for the stock!

[macduffy]

Wow!

And I don't mean Woolworths!

That is a brave call, Liz.

Only 31m shares on issue with 61,000 traded in January and only 501,000 in the last twelve months. Far too illiquid for me but if it comes good it could well be a multi-bagger.

Good luck!!

[drillfix]

Hi Liz,

I can see why Macduff goes wow.

There has only been 1 trade of 18,000 shares done between Feb 1-2010 until Oct 27-2010

Looks like its been a busy month this month though with 4 trades :P

I know you are good at these sort of plays and you seem to pick well, but dont really know if I could be brave as you on this one.

Good luck here and I look forward to reading how things pan out for you. :)

[percy]

Nice to see the momentum building.Looks as though we are "poised" for the upturn.

[Lizard]

Thanks for the responses - and glad to see it was percy buying the other 400k shares traded in the last year! ;)

It really is a bit of an extreme experiment... I've had to put off posting a thread until at least the share price doubled so that the market cap was actually above $1m!

[percy]

[QUOTE=Lizard;335039]Thanks for the responses - and glad to see it was percy buying the other 400k shares traded in the last year! ;)

Wish it had been me,but it took me months to get a very modest parcel of only 26,000.

[percy]

A bit lucky to buy another 37,500 shares at 5cents 21/2/11.Thought the result was a bit late coming and thought it may be poor as it was late.Well Lizard 'you have done it again'.What a cracker.Well spotted,and thank you.

[Lizard]

Hi percy,

Arrived home last night from Cambodia (fantastic place!) and am relieved to see you are okay!

Yes, look like HIT is going to deliver. Will write some more later!

Liz

[Lizard]

If the pattern continues (and so far January has $1.2m of orders), then it is likely HIT revenue will at least double and perhaps triple, with NPAT at least $750k and perhaps closer to $1m mark.

I just pulled up this thread and noticed I never really got back to updating after the HY result... which was well on track at $379k NPAT, although nearly $200k came from gains on investments. Pleasingly, the directors decided to back my earlier NPAT forecast with one of their own - for a FY NPAT of $700k-$1m. :)

Share price has been pretty much static - currently last traded at 6cps, but with a spread of 4cps bid, 7.4cps offer. Market cap approx $1.8m. Liquidity has improved only marginally in the past 6 months, so further proof that trading on a forward P/E of around 2 is insufficient reason in itself to move a share price!

The AusTender database has become difficult to compare, as it appears some major purchasers (e.g. Medicare) are no longer being included in the database. However, the remaining data is still showing very encouraging trends and the web-site is showing a record level of vacancies for the period I've been watching it (currently sits at 72 advertised positions).

While this remains a crazy punt, I'm certainly curious to see where FY comes in and whether it will be enough to move them up. Fingers crossed for a dividend - the one thing that is virtually guaranteed to move even the most illiquid and tightly held of stocks!

[percy]

Yes very illiquid.I have been highest bidder for I think 2 months now.Trying to improve from well positioned to "perfectly" positioned.At least thanks to you I am positioned.!!!!

[Lizard]

At least thanks to you I am positioned.!!!!

Haha, please don't thank me until you actually get out at a profit... if you are the top bidder, then it might be unlikely there are any buyers at all if we want to get out!!

However, for peace of mind, I just downloaded the AusTender contracts year-to-date and since 1 July, there have been $5.2m worth for HIT loaded (most of the full-year contracts get loaded in the first couple of months, so don't expect the pace to keep up!). This compares with $3.66m at the same time last year, so no signs that improvements in revenue are going to fade out yet.

We might get close to the listing year eps this year, but still be trading at under 1/10th the listing price...which probably says a bit about the giddiness of tech boom listings, as well as the current undervaluation.

[percy]

Having too much trouble getting in to even think of getting out.May be a hold forever.!!!!!
Result not far away,last year 27th august.

[Lizard]

Reported today and NPAT came in at $648k - or below the bottom end of their forecast range. However, the trading gains/losses aren't entirely clear in all that, as there is a $250k realised loss on financial assets and a $335k unrealised gain. So overall looks like a $105k gain from investments - down from $197k at half year.

Somewhat disappointed to see that they seem to have bought a few more financial assets this half, despite saying they can't pay a div due to needing extra working capital. However, cash is now up to $910k and the Current Assets less Total Liabilities is sitting at 7.7cps, vs last trade at 6.0cps.

EV/EBIT of 1.0 and P/E of 2.33. Revenues have grown and last four half-years read $2.5m, $3m, $3.7m, $5.0m - so heading strongly in the right direction. I estimate about 80% of this years revenue is measurable off the AusTender database, and search results so far this year are looking pretty strong, so I'm mostly comfortable to keep holding.

A bit pouty about no div though - a nice 1cps could have been paid out of free cashflow and would have helped the market believe they are serious about being listed (the market = me!). :cool:

[percy]

I was a little disappointed to start with there is no divie,but a small company with a market cap of under $2mil would need to keep cash for working cap,particulary when they have to pay out wages before they are reimbursed.
Can't figure out their investment trading.Be nice to know which companies they take positions in,and whether or not they are successful or not.
Your comment about measuring 80% of revenue off the Aus Tender is enlightening.Nice to have a bit of inside info.!!!!
The excellent balance sheet,its strength,make me a happy holder.Growth will come from retained earnings.A small company with cash,makes for a potentical winner.We will just have to watch that they make better use of retained divie than we could have.I feel a lot of small companies who have held onto cash have done well.I do not like small companies who have weak balance sheets.
So I feel the next year will make this an interesting company to have shares in.

[Lizard]

Your comment about measuring 80% of revenue off the Aus Tender is enlightening.Nice to have a bit of inside info.!!!!


I just did the maths on contracts that are in place to be executed for this year and, assuming we can still apply the 80% rule, equates to about $6.3m of revenue in place for current financial year already, so looking good to break through the $10m revenue this year.

Still cautious. Liquidity hasn't really picked up much (apart from the two of us buying!). A dividend might have done it, but now seems unlikely for another year. Without liquidity, it seems likely to stay stuck here - too dangerous to get in, too difficult/cheap to get out.

[percy]

thanks for your update.Very positive.Think my buy order has gone stale.Not showing. Will LOITER WITH INTENT.As I have a position it was only to add to my holding.
For a small company I worry more about financial strength rather than liquidity,but then I watch I don't have too a big holding that it becomes a concern.
Would be nice to go to the AGM sometime to meet the directors.

[percy]

From today's chairman's address to the AGM we can see that HIT are very good at turning a profit from their business,but are poor investors.
One would hope they focus on business,sell investments,and pay us a divie.

[percy]

Latest result.
Recruitment business doing very well and generating plenty of cash.Cash flow from operating activities is excellent.Cash at the end of the half year excellent.
Further write down of their investments in listed companies continues their poor investment record.
No divie.

[Lizard]

I am not unhappy with that result:
1. As you say, the recruitment business is going well - impressive given results from other recruiters.

2. They at least didn't put any more money into investments this half (and it probably wasn't a good time to sell any, so happy that they didn't do that either).

3. I read the note about dividends at the bottom of the Directors Report and suddenly clicked that they are not paying a dividend because they still have accumulated losses. (I don't really understand the rules in this regard as they seem to vary between countries - insights from knowledgeable posters welcome!). However they only have $440k of losses to go, so cross-fingers they turn a profit on the investments in second half and we can clear the balance. After that, would need another $150k spare to pay a 0.5cps div - so would need them to turn $590k in the second half... even with investments, that may be a stretch and perhaps a div will be next years excitement... but at least I now have hope that they actually will pay a div at some time.

4. We are getting closer to that magic $10m of revenue that will mean we can put this on Steve's profitable micro-caps list.

5. Meanwhile, I get to enjoy the novelty of holding a 3.5cps share that has 5.5cps in cash and a business that is generating circa 2cps in profit. I think we can say we are "well-positioned" for the upturn, eh Percy? ;)

[percy]

I am not unhappy with that result:
1. As you say, the recruitment business is going well - impressive given results from other recruiters.

2. They at least didn't put any more money into investments this half (and it probably wasn't a good time to sell any, so happy that they didn't do that either).

3. I read the note about dividends at the bottom of the Directors Report and suddenly clicked that they are not paying a dividend because they still have accumulated losses. (I don't really understand the rules in this regard as they seem to vary between countries - insights from knowledgeable posters welcome!). However they only have $440k of losses to go, so cross-fingers they turn a profit on the investments in second half and we can clear the balance. After that, would need another $150k spare to pay a 0.5cps div - so would need them to turn $590k in the second half... even with investments, that may be a stretch and perhaps a div will be next years excitement... but at least I now have hope that they actually will pay a div at some time.

4. We are getting closer to that magic $10m of revenue that will mean we can put this on Steve's profitable micro-caps list.

5. Meanwhile, I get to enjoy the novelty of holding a 3.5cps share that has 5.5cps in cash and a business that is generating circa 2cps in profit. I think we can say we are "well-positioned" for the upturn, eh Percy? ;)

Lizard,Yes I think we are "well positioned" for the upturn.!!!!!! lol.
Just hope they don't "invest" any of that cash.

[Lizard]

Okay, well "Plan B" for them next time you ring for a little chat, Percy...:p

Let the directors exercise their 4cps options in June for $240k extra cash, then announce a 3cps return of capital (a little over $1m return) to get rid of the excess cash. Directors will get back in excess of what they spend on the option exercise against the shares they already own. They might also like to sell a few of those new shares on-market into the rush of interest I foresee a 3cps payout generating, thereby also giving us some ongoing liquidity and reducing the low-liquidity discount on that 5.5cps of NTA and 1.5c of ongoing EPS we'd have left ....

...oh, and put those investments in the Pie Australasian Dividend Fund! :D

[percy]

Okay, well "Plan B" for them next time you ring for a little chat, Percy...:p

Let the directors exercise their 4cps options in June for $240k extra cash, then announce a 3cps return of capital (a little over $1m return) to get rid of the excess cash. Directors will get back in excess of what they spend on the option exercise against the shares they already own. They might also like to sell a few of those new shares on-market into the rush of interest I foresee a 3cps payout generating, thereby also giving us some ongoing liquidity and reducing the low-liquidity discount on that 5.5cps of NTA and 1.5c of ongoing EPS we'd have left ....

Wonderful post Lizard.I speak to the company secretary.I have been wondering how "THE FAMILY" will convert thier options without putting up any cash.Using the company's cash would be right up their alley.Would love to see them write out cheques,however I feel you have a better take on this than me.
..

[Lizard]

You'll probably be as impressed as me with that result, Percy...

...how does one managed to make $500k in investment losses in 6 months, while starting with just a $284k investment portfolio? Perhaps we should offer our investment services... we could manage the cash through rotating term deposits, pay ourselves a nice management fee and still contribute to a dramatically improved result... (make sure we have a performance bonus in the contract, eh? :) )

If it wasn't for that - it would have been a nice year... although looks like we'll need to go back to sleep waiting for the dividend...

[Lizard]

...how does one managed to make $500k in investment losses in 6 months, while starting with just a $284k investment portfolio?

Okay, I found it - they wrote back $412k of impairments under "other income" first, before booking the losses. So actual loss in the second half on investment is probably more like $45k.

[percy]

Note 9 Financial Assets this year $28,080 last year $353,860.Does this mean they have sold most of their investments and only have $28,000 left to lose.?
The actual business is in good shape,generating positive cash flow.Cash up 107% to $1,879,930,with NTA increasing to.10 cents per share.
Shareholders equity increasing from $2,519,739 to $3,076,430.
Do they really need all of this extra cash to run the business?
Safer to return cash to shareholders rather than trying to be investors.!!!!
Throught this result would be the turning point.Not to be.
With 31,000,000 shares market cap $1.55 mil [at 5 cents] and NPAT of $ 556,699 it remains a company of interest.

[Lizard]

Agree, percy. I haven't quite given up on it - still more cash than market cap and increasing. And yes, will be very irritating if they get tempted to play the market again with it when they've just said they can't use it to pay divs due to working capital needs...

Good to see someone buy the shares at 5cps. Feel sorry for the poor patient seller who has been trying to give them away at 5.4cps all year and no takers!

[percy]

Agree, percy. I haven't quite given up on it - still more cash than market cap and increasing. And yes, will be very irritating if they get tempted to play the market again with it when they've just said they can't use it to pay divs due to working capital needs...

Good to see someone buy the shares at 5cps. Feel sorry for the poor patient seller who has been trying to give them away at 5.4cps all year and no takers!

How about the buyer [me] who has been there for months doing community service offering to take unloved shares at 4cents.!!!! ,just so they could go to nice friendly caring home.

[Lizard]

...just so they could go to nice friendly caring home.

You mean so you could vote more shares against the remuneration report? :p

[Joshuatree]

!st half Results
Gross profit -15%
Rev -7%
NPAT $138,355 last year $209,328
"the outlook for the 2nd halfof the financial year will depend primarily on the prevailing economic conditions of the time" LOL

[percy]

Still no mention of divie.!

[percy]

We have had a movement.!!!!!
Now we have buyers,103,000 at 5.2cents and 500,000 at 5.1cents.
Seller at 5.5cents has 499,400 for sale.
trade today,17,000 at 5cents.
Feel we have moved from "well positioned" to "poised".

[Lizard]

Yes, I have my seat belt fastened, ready for a trajectory... :D

[Snow Leopard]

Yes, I have my seat belt fastened, ready for a trajectory... :D

It only trades once every fortnight. I hope you have a picnic hamper with you.

Best Wishes
Paper Tiger

[Lizard]

It only trades once every fortnight. I hope you have a picnic hamper with you.

Best Wishes
Paper Tiger

Yes, percy and I have been having an extended picnic - with money we probably don't expect to ever see again... all for the great cause of theorem testing and the old "net-net bet". :blush:

[percy]

It only trades once every fortnight. I hope you have a picnic hamper with you.

Best Wishes
Paper Tiger

Not that liquid.
Only trades once or twice in a blue moon.
I think it can go about three or four months without a trade.Maybe longer.
It all looks great,however the old guy Ray Hazouri seems to run it for himself and his family.If he should decide to share with shareholders then the fun should start.
Lizard and I and one or three others are what you could best describe as "well positioned."

[percy]

Yes, percy and I have been having an extended picnic - with money we probably don't expect to ever see again... all for the great cause of theorem testing and the old "net-net bet". :blush:

Yes I think I will be as surprised as you,should we pull it off.

[Joshuatree]

Hard to know what will change here with the 3 Hazouri gluttons in the trough but hey I'm going to hang in another 6 months or so you never know.Downside limited like MRP lol.

[percy]

This is my craziest punt stock of the season due to its low market cap ($1.55m at 5cps!) and lack of liquidity. Have decided to give it a thread in the hope that the HY result will be worth writing up here later!

HiTech is a recruitment business, specialising in ICT. They listed too late for the tech boom and languished from the listing price of 70cps down to a low of 1.5cps. However, they have remained borderline profitable and never gone back to the market for more cash.

I picked up 100k at 2.5cps after coming across them on the net-net thread, so it's not going to make or break the bank! However, I am interested to see how it plays out, given the difficulties the liquidity imposes.

At last report, they had cash of $535k and other liquid assets in excess of liabilities totalling $1.5m. They reported a small profit last year ($136k with normal tax). However, this year is likely to see a substantial increase on that.

Firstly, at the agm they reported a 49% increase in first quarter revenue and $200k NPAT for the first quarter alone (plus gains on listed investment assets). They also forecast FY NPAT of $500 - $750k, though I would not normally take too much notice of a forecast that early in the season for a minnow like HIT.

Secondly, the federal tender database shows a dramatic increase in contracts awarded to HIT - 2009 year jul-dec period showed orders totalling $1.1m, while for the 2010 year jul-dec it sits at $5.2m... given that last year HIT total 12 month revenue ran at $5.5m and AusTender showed contracts for about half of that, the AusTender indicator is for a pretty impressive increase. If the pattern continues (and so far January has $1.2m of orders), then it is likely HIT revenue will at least double and perhaps triple, with NPAT at least $750k and perhaps closer to $1m mark.

So I am interested to see both how the half year result is tracking and how far the share price can move. Ideally, it would be good to see a dividend paid, and up to 1cps might be possible, although this would be more likely at FY.

However, ridiculously cheap as it is, no stock gets this illiquid without a reason, so there has to be a reasonable chance I'll get my fingers seared - if not by the result, by the lack of a market for the stock!

31,000,000 shares at 5cents market cap is $1,550,000 [yes$1.55mil].NTA is 10cents.EPS is 1.57cents.PE is 3.18.
Now if Ray Hazouri really wanted to make real wealth for his family he would work at getting the share price from 5cents to 30cents.That would take market cap from $1.55mil to $9.3mil.An increase of $7.75mil.We can see this,and in time Ray will see it to.[we hope.]

[percy]

Yes, percy and I have been having an extended picnic - with money we probably don't expect to ever see again... all for the great cause of theorem testing and the old "net-net bet". :blush:

The market for HIT is hot.!!!!
Just when you least expect it,there is a trade today. 22,000 at 5.2cents.
lol.

[percy]

The excitement continues with the appearance of a buyer at 5.3cents.
Welcome.!

[Snow Leopard]

Thanks for the news stream percy.

Do you subscribe to an update service or sit and watch it?

Best Wishes
Paper Tiger

[janner]

It should be knickers you are buying Perc.. Not Woolly Pully's

[percy]

Thanks for the news stream percy.

Do you subscribe to an update service or sit and watch it?

Best Wishes
Paper Tiger

Sometimes I sit and think.
Most times I just sit,... and watch.

[percy]

It should be knickers you are buying Perc.. Not Woolly Pully's

Looking forward to meeting you on Thursday night at the Tauranga sharetraders get together.
Better make sure I leave my Postie Woolly Pully at home.!!!

[percy]

Yes, I have my seat belt fastened, ready for a trajectory... :D

Well tighten it Lizard, we have take off.!!! 140,000 gone through so far today at 5.5cents.
I think Lorraina [the ramper] is onto to HIT over at HC.
Looks as though the train [with the smart money on board] may be leaving the station.!! Toot Toot.!!!! lol.

[percy]

BUT,WAIT THERE'S MORE.!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!
Another 203,000 gone through today at 5.5centsThat's takes todays total to 343,000.
Looks to me as though the smart money are moving into this stock.Only 156,000 left at today's special price of 5.5cents.!!!!!!

[stoploss]

Hi , joining you on the register on this one .
Got some at 5 today , see how we go .

[percy]

Hi , joining you on the register on this one .
Got some at 5 today , see how we go .

Welcome.??!!!
Bit surprised to see them going through at 5cents yesterday,thought the market was 5.5cents.
Yes we will "see how we go." !!!!

[h2so4]

I dont know how you guys invest in these illiquid stocks and still sleep at night :-)

They count tender contracts.:)

[percy]

They count tender contracts.:)

That has got to be the best reply I have read all year.!!!!!!

[percy]

Well the "smart money"has taken out the 5.5cents seller.All gone,no more.
That leaves the reluctant seller at 7cents with 56,800 shares for sale.
She certainly is a market mover that Lorraina over at HC.[naughty girl,but I like her]

[Joshuatree]

Profit guidance of $100,000 to $200,000. The Hazouri Brothers Three extract over $800,000 in fees.

[percy]

Profit guidance of $100,000 to $200,000. The Hazouri Brothers Three extract over $800,000 in fees.

I suppose we have to be thankful it is not a loss.
Luckily balance sheet remains very strong,and proves it pays to buy only small companies who carry little or in HIT's case no debt.

[Lizard]

Hi percy,

I decided to exit while I actually could - too many illiquid positions, always makes me feel vulnerable in market weakness! Will watch with interest - but not too many regrets. An interesting ride, but I still don't entirely trust them not to find a way to quietly de-list!

[percy]

Hi percy,

I decided to exit while I actually could - too many illiquid positions, always makes me feel vulnerable in market weakness! Will watch with interest - but not too many regrets. An interesting ride, but I still don't entirely trust them not to find a way to quietly de-list!

I suppose you have done the sensible thing.!
Market weakness has made this company a lot bigger risk.
Cash of $2,447,497,[maybe slightly more] ,market cap of $1,395,000 .
Buyer did reappear rather quickly after your trade,which I find interesting.
Should they de-list the company, they loose the only chance they have of generating real wealth for themselves.ie good earnings,paying a divie, the SP would go to 20 or 30 cents.Market cap of $9mil is a great deal more than todays $1.4mil.
Can't help myself with companies who have a lot more cash than their market cap.Did well with ZIN in NZ and LRG in Aussie,but may take a hit with HIT.

[Joshuatree]

Im still hanging by a thread lol. Unfort i have long since come to the conclusion that the 3 amigos don't ever consider their shareholders and are in it for themselves with some sort of agenda that excludes us.Look at their minimal compliance standards.It looks like they buy an Annual report doc from the bookshop and fill in a few spaces. They didn't bother to release top 20 shareholders list etc , etc. Happy to be proved wrong tho and still sitting atp. Something hazy like a wheelbarrow full of smoke:)

[percy]

Im still hanging by a thread lol. Unfort i have long since come to the conclusion that the 3 amigos don't ever consider their shareholders and are in it for themselves with some sort of agenda that excludes us.Look at their minimal compliance standards.It looks like they buy an Annual report doc from the bookshop and fill in a few spaces. They didn't bother to release top 20 shareholders list etc , etc. Happy to be proved wrong tho and still sitting atp. Something hazy like a wheelbarrow full of smoke:)

How dare you slander bookshops.Lovely honest people run bookshops.!!!!!
Rest of your post I agree with.

[blackcap]

[QUOTE=Joshuatree;412941.It looks like they buy an Annual report doc from the bookshop and fill in a few spaces. They didn't bother to release top 20 shareholders list etc , etc. Happy to be proved wrong tho and still sitting atp. Something hazy like a wheelbarrow full of smoke:)[/QUOTE]

Thats because they dont have 20 shareholders :)

[Lizard]

Thats because they dont have 20 shareholders :)

Yeah, but always a nice moment seeing your name on a "top twenty holders" list for the first time.... makes you feel like you "made it"... :D

[Joshuatree]

HaHa x 3 yes indeedy. Now can i interest yous in a floating anchor, NOW with bungy cord attachment and bonus smoke bomb:t_up:

[percy]

Yeah, but always a nice moment seeing your name on a "top twenty holders" list for the first time.... makes you feel like you "made it"... :D

Yes, well, maybe,maybe not.! I was once in the top 20 in Wellington Drive.Luckily I sold out before I 'lost it".!!! lol.

[percy]

Well I have had a change of heart and I too have sold my HIT.
Will pay for our new lounge suite.The HIT suite.!!!

[Joshuatree]

Board changes; Sam has resigned and his Bro ,Elias is replacing him, AND Barry Neal, secretary has resigned AND ; Wait,For,It; Miss Tram Tran is ,his replacement!! Im maybe the only crazee left in HIT but hey maybe a div is on the way:)

[percy]

Board changes; Sam has resigned and his Bro ,Elias is replacing him, AND Barry Neal, secretary has resigned AND ; Wait,For,It; Miss Tram Tran is ,his replacement!! Im maybe the only crazee left in HIT but hey maybe a div is on the way:)

I knew my selling would be a buy signal.
Hang in there.!!
Hope you get a divie.
If they pay a divie the SP could double.!!

[Lizard]

I thought it was more interesting that Wallbay was buying - has been a large holder for years, so maybe he's decided to get activist? However, no sign of him appearing in the directors. Thought he was more into horse-racing though.

[Stranger_Danger]

Maybe he has decided to get into greyhounds.

[Joshuatree]

DIVIDEND, DIVIDEND, DIVI .DIV,DDDD :t_up: HALF A CENT
NTA 11c
REV $7,367,000 down 23.52%
Profit down to $164,504
Cash $2,758,000

Mkt Cap $1.61 million

[percy]

Divie?? Dividend??
I think you are dangerously well positioned.!!

[Lizard]

Well done, JoshuaTree - all those months of waiting and I gave up too soon! :D

[stoploss]

Im still hanging by a thread lol. Unfort i have long since come to the conclusion that the 3 amigos don't ever consider their shareholders and are in it for themselves with some sort of agenda that excludes us.Look at their minimal compliance standards.It looks like they buy an Annual report doc from the bookshop and fill in a few spaces. They didn't bother to release top 20 shareholders list etc , etc. Happy to be proved wrong tho and still sitting atp. Something hazy like a wheelbarrow full of smoke:)

Hi JT, I am still in this as well, hope you like the annual report even has top 20 shareholders .....doesn't take much to get in top 20 lol...

http://www.asx.com.au/asxpdf/20130920/pdf/42jhpfwjxqx539.pdf

[Joshuatree]

Hi stoploss yes im in and things have improved for us.Annual report a little bit meatier and the div has finally arrived. Im the 20th top holder lol cheers JT

[Joshuatree]

Miss Tram Tran has resigned and been replaced by THREE other secretaries; Mr raymond Hazouri, Mr Elias Hazouri, and Juliana ZHU!!! :). Hazouris making this co a nearly total Private Family public company. Just wishing they've given up stock picking investments; they are so bad at it.Fun having a small holding in this Freak. Div anyone?

[stoploss]

this reads pretty well NTA 10 cents ....... surprised with this announcement there is no divvy mentioned !!

http://www.asx.com.au/asxpdf/20150218/pdf/42wphsf0bzks1g.pdf

[Joshuatree]

Over half amill in investment share losses rinse and repeat. They own re 75% plus of the co and last i looked were paying themselves re $800,000 in management fees.. But, hey, may be a div at full year again. Cant wait to see what the s/p does when the mkt opens tomorrow.....yawn

[Joshuatree]

Results due and s/p up 17% on a stock you normally have to make an appointment to attempt a trade.

[stoploss]

Results due and s/p up 17% on a stock you normally have to make an appointment to attempt a trade.

Yea , raised my eyebrows when I saw that .......

[Joshuatree]

S/P up 44% today:t_up: to 12.5c
Revenue 88% up to $15,104,907
Gross profit $3,180,051 plus 163%
NPAT $807,721 FY14 Net loss $150,658
NTA 12c share Mkt cap this morn re $2.7 million.
No mention of investments on the ASX which have been disastrous over the years.so I'm guessing they stopped them.
Re a double bagger for me after being a sleeper for re 4 years with one div over that time. prob will announce a divi for this too.

[stoploss]

HI JT, Good update from the AGM . They have undertaken not to make any more "investments" .... SP upto 17 cents on the close . I can't see any mention of a divi .However would rather the share price
keeps going in this direction , stuff the divi !!!

[Joshuatree]

Hi stoploss.This stale holder got shaken out:(.Cant believe the sea change happening to HIT. Im guessing when the other brother quit that was the catalyst for positive change. Sa La Vie ; i did double my money. Good luck ; will watch .....for....a.... while....

[stoploss]

bugger , Percy , Liz, JT......anyone left ? I won't bother with the updates to myself lol .....

[percy]

HI JT, Good update from the AGM . They have undertaken not to make any more "investments" .... SP upto 17 cents on the close . I can't see any mention of a divi .However would rather the share price
keeps going in this direction , stuff the divi !!!

Pleasing to see earnings are no loner being lost in "investments."
Took them far to long to "wake up".
Keep posting Stoploss, as I find it interesting to have updates as to how HIT are doing.

[stoploss]

Pleasing to see earnings are no loner being lost in "investments."
Took them far to long to "wake up".
Keep posting Stoploss, as I find it interesting to have updates as to how HIT are doing.
" Outstanding "

[percy]

" Outstanding "

That's incredible.!!
Well done.!

[Lizard]

Well done, stoploss! Nearly round to 5 years since I thought this would be a tenbagger for me and bought at 2.5cps (from memory)... pity I gave up waiting! :)

[stoploss]

Can't post the link but looks like a further profit upgrade was out late yesterday . I have picked up some more over the last week. This could be an interesting turn around .

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01666478)

Here it is.Cant believe this leopard has changed its spots so quickly. Years of minimal announcements; annual reports nearly identical word for word with diff numbers and continual losses from" investing" on the ASX. Divs few and far between.

[h2so4]

bugger , Percy , Liz, JT......anyone left ? I won't bother with the updates to myself lol .....

Can't believe these Gurus aren't on it?.."....

[h2so4]

..........changing times......?....

[Joshuatree]

Yeah lost mah MojoGuru .... but found mah Groove

Pendle: Thai Bar Grooves: Deep House Mix (https://www.youtube.com/watch?v=BFjYUfZJ_nk)

[h2so4]

So let's get this straight. There's an increase in profits of 60% over pcp which was an increase of 133% over pcp...... Sheesh!,

[stoploss]

Shows you how bad their " investing " was .....

[stoploss]

Percy - Help please . I know you have done some extensive research on the use of certain words in announcements .
Just wondering where "Our outlook for FY2016 is significantly positive ,optimistic " ranks ?
http://stocknessmonster.com/news-item?S=HIT&E=ASX&N=888809

Got me a little worried with their track record on ASX "investments " !!

[Joshuatree]

PDF (http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01572206) Notice the similarity to the 2014 Chairmans address except the figs and misspeling(Relighted instead of Delighted(rehashed:).Still up to their old tricks but great they are not making any more loss making" investments" on the ASX.This should help the s/p longer term

[stoploss]

JT This bit has me worried- " Based on internal management accounts for the first quarter of FY2016, assumingsimilar market conditions and a recovery in our listed investments in the Australianstock market, the Group’s expected Revenue, Gross Profit and Operating Profitfor the full financial year will be higher. Exact results can't yet be predicted but wewill keep the market updated as required. "

"Recovery in our listed investments " , I will try and call them this week suggest they get out of them , stick to their knitting seems to be working .....

[Joshuatree]

Investments


This from FY 2015 presentation
Investments in ASX-listed securities (all ASX200)have hidden the underlying profitability of the corebusiness in recent years

We are focused on growing the core business andhave no intention of making further investments

HiTech remains in a strong net cash position with nodebt

$1.8m cash and NTA of 12c at 30 June 2015

IM assuming (dangerous:) that as their investments "mature" they will sell them and not do it again as above.

[stoploss]

Hi JT ,
Bit of volume today , must be due for half year report ..........
Bit of a worry they are giving management "incentive options " @ 22 cents ...... Where is the incentive ??? Could at least be priced above market ......

[Joshuatree]

For awhile i thought just the one brother running the show was a great improvement;it has been as the share price rerated big time ....and then this!!!!????...... Thought the CAJ CEO was bad enough with his low hurdle for conversion of re 30 mill options but this is such blatant grab giving us the fingers to boot. Ive got just one finger up atm:mad ;:

[Joshuatree]

Download Document 484.6KB (http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvFDZpiw n9k0qC0%2Bhx9stNT7rIGYEQXhZkP1HhlFA%3D) Have both hands up Bolt style now:t_up: Prob take profits tomorrow.Share Investments liquidated at last.

[stoploss]

Download Document 484.6KB (http://hotcopper.com.au/documentdownload?id=uOMxKKzFkiWRTLKhOROKAxjvFDZpiw n9k0qC0%2Bhx9stNT7rIGYEQXhZkP1HhlFA%3D) Have both hands up Bolt style now:t_up: Prob take profits tomorrow.Share Investments liquidated at last.

They finally listened to what every shareholder was telling them .....

[NZSilver]

Very tidy result, I think we will see $1 in the medium term

[Joshuatree]

Happy to leave something for the next person. Set my sell @ 69c and hit it at the end.Good gains from my 39c entry.2nd or third time I've been in. Its been a little uncomfortable for me as i think management have a huge self entitlement attitude from what I've experienced over the years e.g. incentive options with a ridiculous hurdle rate of 22c.

[stoploss]

Happy to leave something for the next person. Set my sell @ 69c and hit it at the end.Good gains from my 39c entry.2nd or third time I've been in. Its been a little uncomfortable for me as i think management have a huge self entitlement attitude from what I've experienced over the years e.g. incentive options with a ridiculous hurdle rate of 22c.
Couldn't agree more . Tried to engage with management , totally blanked me . Finally took the advice to get out of trading / holding shares . Best stick to recruitment if that's what your listed company does !!?
disc : still holding small position .( thanks Liz for starting a profitable thread )

[Joshuatree]

Yes , good one stop loss; thanks Liz; we miss you. Just noticed i have 1000 left unsold ; ah well $1 is fine.:p

[Joshuatree]

HIT me with your Dthym Stick
Down she goes
Quick quick quick!

[DarkHorse]

Yield now over 10% with high ROE and decent growth. Whole sector being sold down. Not so keen on ever increasing management options...sold half a while back and if I'd had my eye on the ball would've cashed in the rest at $1.20. Looking very cheap now though!