Good move -- probably see a new ATH today .... or tomorrow
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You're quite right mate. I am being super conservative with 60 cps, (far too conservative...which is unlike me). In my defense I have only had time for one coffee this morning and I did say "I think they can easily do 60 cps in earnings this year"
To be honest I haven't really given a lot of thought to the second half but I think ultra low interest rates and people's inability to travel will see retail demand remain at a very robust level. Maybe we see as much as $20m for the second half which would lead to around $44m for the year and eps of 74 cents ? I guess that raises the possibility of what on earth are they going to do with all that cash ?
LOL that would be very nice but 21.8 is the average of the other two retailers on last years covid affected earnings. I don't think we can expect it to trade at that multiple on this years earnings but at $10 its fairly priced compared to its peers and as mentioned, I think HLG has much better growth prospects going forward.
economy exploding on forward govt spending...
$13
if aussi numbers are the same for employment.
Come on boys you starting to sound like the Three Stooges with this guessing game .....
Yes...I was pondering what is the right multiple for FY21 and I arrived at almost the same conclusion. I am thinking 15-16 times current year earnings based on their multi year track record of strong growth in Australia with Glassons. I think the shares are worth $10.15 now and my price target for 12 months hence is $11.50.
The yield could be VERY interesting. Unless they have plans for the substantial ~ $50m cash on hand I expect they could pay out close to the whole years earnings this year.
Canny investors will know this trades cum a likely twenty something cent fully imputed dividend likely payable in April...or maybe its 30 cents ?
NZD up on surprisingly low unemployment rate
So less people unemployed / more working - that’s good for HGH
And NZD good for HGH margins later in year.