HLG - Hallenstein Glasson

[King1212]

20c dividend again or 15c?

[BlackPeter]

20c dividend again or 15c?

Who knows (and cares ...), but if they are sensible (and I think they are), they better increase their reserves instead of splashing all their earnings around ...

[King1212]

They dont have debts...

if they borrowed,,,,then debts are so cheap now...

[Balance]

They dont have debts...

if they borrowed,,,,then debts are so cheap now...

Good point. Debt is always the cheapest form of funding, especially at times like we are having now.

Still prefer HLG to keep an ungeared balance sheet however. Provides flexibility to manage the volatile times we are in.

[percy]

As a retailer they do have large lease liabilities.
As at half year 1st Feb 2020,current lease liabilities were $21,685,000, while Non current lease liabilities were $58,538,000.
So they would be wise not to have too much, if any, extra debt.

[Beagle]

Tim Glasson has owned 20% of the company for a very long time and I am quite relaxed about the situation as he's a very shrewd operator and I am sure he and his fellow directors will make the right decisions that are in the long term best interest of the company. From where I sit in the cheap seats compared to him I think it is prudent to take a conservative approach to dividends in the present circumstances. I am sure whatever decision the directors make will be the right one and well within the companies ability to pay.

[Cyclical]

Tim Glasson has owned 20% of the company for a very long time and I am quite relaxed about the situation as he's a very shrewd operator and I am sure he and his fellow directors will make the right decisions that are in the long term best interest of the company. From where I sit in the cheap seats compared to him I think it is prudent to take a conservative approach to dividends in the present circumstances. I am sure whatever decision the directors make will be the right one and well within the companies ability to pay.

HLG - a tough year or two ahead I reckon as economic reality hits. But they're resistant and experienced. In the bottom drawer where it belongs.

[Beagle]

HLG - a tough year or two ahead I reckon as economic reality hits. But they're resistant and experienced. In the bottom drawer where it belongs.

Good bottom drawer stock I agree. They have certainly been more resilient than what I expected so far and I suspect this will continue.
Fact is its been a really tough year for people of all walks of life and with this being mental health week while I was out on my much needed walk today I reflected on just how tough its been this year on a lot of people's mental health. All that stress, fear and uncertainty with one's health, wellbeing and for many people their job's or business's. WOW...what a year and its not over yet !!

I suspect plenty of people will still engage with a little retail therapy for a much needed boost to their mood.
Back to level 1 for most of the country helps too and Melbourne is doing a lot better with its problem too.
On a look through Covid basis, this is a very cheap stock and the best retail exposure on the NZX in my opinion. (I also hold a modest position in WHS which I think is a little more defensive but time will tell).

[dibble]

If the divvy is cut think of it as very cheap insurance, the money is still there and if all goes well over the next couple of years we'll probably still get it back some way or another. And if things turn to custard that might be the bit of cash that buys them enough time to adapt and flourish rather than struggle through rushed decisions.

[Balance]

Reporting tomorrow - so last opportunity to get set if you believe HLG is going to pay a final dividend, affirming its status as one of the highest yielding stocks on the NZX.

Meanwhile, RBNZ moving to pressure interest rates down lower and faster :

https://www.interest.co.nz/news/1071...ramme-would-be

Excerpt : "The Reserve Bank’s (RBNZ) Monetary Policy Committee is planning to introduce a Funding for Lending Programme (FLP) before it cuts the Official Cash Rate (OCR) next year.
It essentially wants to push interest rates lower in coming months without going back on its word and cutting the OCR before March 2021."

Watch for billions of dollars of maturing bank deposits to flood into high yielding stocks in the next few months on the NZX as a first response.