BGR - Briscoes Valuation

[bull....]

So.... BGP is trading 0.86c off its pre-Covid high of ~4.50 (23.6% off). In comparison, HLG is trading $1.63 off its pre-Covid high of ~$6.00 (37.3% off).
HLG with (what I perceive to be) a slightly better online offering, which is really important (especially if we bounce around these 'levels' for a bit). HLG also has a stronger divi (0.15 deferred, plus another in DEC and another in APR of maybe ~0.16 & ~0.15).... BGP with maybe 0.18(ish) total, so....at a guess, its maybe 7% vs 5%
Assuming both retailers (bearing in mind BGP is slightly more 'defensive' because of its diversification) continue to weather the storm and the divi-hounds (or beagles) come out in a low-interest environment, AND they both match their pre-covid results in ~2022, it seems to me that HLG has a bit more headroom for a return...
disc. hold HLG
disc. dont hold BGP, but happy to be convinced! (was looking for a ~$3.10 entry after Q2, but I seem to have missed the boat)

HLG has always had a high dividend yield , stocks with higher than usual dividend yields is because the market places a risk premium that the dividends might not be paid at some time so the compensation takes this into account. another example is AIR
BGR div yield is lower because as you say its products are more defensive than HLG. you can wear holey clothes if you choose but you cant make your coffee or toast with a broken unit

[bull....]

If rod sold his Kathmandu shares he would have heaps more eh

You know the answer to that question you asked bit get your point

BGR has better liquidity ratios than HLG and also has more assets per share if you divide total assets/ total liabilities and if you add in the 20 odd mil BGR saved on the last div rough calc might suggest 90m odd cash on hand now in the report to come. so BGR has far more flexiblity in the balance sheet.

[bull....]

BGR's cash and KMD holding does complicate valuation a bit ....esp if using multiples and comparing to other retailers

your right valuing retailers is not straight forward

[winner69]

according to there interim report in 2020 they have 98m in total liabilities ( debt owing )

....and Briscoes have a whopping $384m in total liabilities ...OMG that’s huge

Both have no bank debt ...that’s good

[bull....]

....and Briscoes have a whopping $384m in total liabilities ...OMG that’s huge

Both have no bank debt ...that’s good

bigger number the debt but as a ratio of comparison with hlg it is better , in fact most metrics of bgr are better than hlg

[winner69]

bigger number the debt but as a ratio of comparison with hlg it is better , in fact most metrics of bgr are better than hlg

Hlg have much higher stock turns .....envy of most global retailers .....ans very efficient use of capital

[bull....]

Hlg have much higher stock turns .....envy of most global retailers .....ans very efficient use of capital

inventory turnover as a stand alone is not a good indicator in my opinion. can be easy to manipulate by companies

[Mr Slothbear]

Very rarely will you find a company where management is both capable and their interests are so closely aligned to shareholders as with Briscoes. Sure it can result in less risk taking and possibly slightly less aggressive growth ambitions at times when Rod is getting on in years but when the Rod owns most of the ship you know he’ll see it through the storm with little fuss. If the stockmarket closes for 10 years you can be assured of excellent management and reliable dividends.

You’ll have to look very hard to find management forgoing their salary for the benefit of shareholders.

[Captain Ramjet]

up to $3.74 but on very small volumes. Sharesies crowd having a look now?

[bull....]

saved 20 odd million from not doing the end of year div to add to the 67 million in cash on hand already , so plenty of cash in the bank to reward share holders hopefully.