HLG - Hallenstein Glasson

**JeremyALD** · 25-09-2020, 11:04 AM

What an amazing business.

The directors and team deserves to celebrate tonight. Truly amazing performance, investing significantly into their online platforms over the last few years has paid dividends!!

**winner69** · 25-09-2020, 11:14 AM

Great overall result

But Hallensteins remain the problem child......has been for a few years now.

Sales back to 2016 levels and with declining margins stuff all profit.

Worry also they weren’t as resilient as Glassons during the tough times ...maybe a guy shopping thing. Hallensteins H2 sales down 20% and profit down 50%...ouch

Just saying.

**percy** · 25-09-2020, 11:29 AM

Interesting noting the two retailers [HLG and Briscoes] who developed their online channel early ,are trading so well.
In hindsight their foresight was right.

**Oliver Mander** · 25-09-2020, 11:34 AM

Have just gone thru and updated my own forecasts after this result. Was lucky in that my own forecasts were very close to the actual 2020 result, so have built up a position (as a defensive play on Covid, somewhat unbelievably) since early August.

But what really gets me is the future outlook - they've had a great start to 2021, in spite of lockdowns, and seem ton have managed the crisis well so far. Some concern over the government wage subsidy payment, which obviously won't continue...but I had factored that in to my valuations. At a high discount rate (its still a relatively volatile share compared to the index, so has a high beta), I'm coming up with something north of $6 a share. Have not trawled previous comments here yet, but will do so shortly...I'm picking its pretty favourable :-)

**Balance** · 25-09-2020, 11:53 AM

Originally Posted by Balance

If HLG pays 35c to 40c dividends in the next year, I fully expect the sp to go to between $7.00 to $8.00 by end of 2021 - providing a net yield of 5% to investors grappling with zero or negative interest rates next year. Just mho based upon historical experience when interest rates in NZ dropped sharply.

Heading towards $6.50 as a first stop by Christmas. You read it here first.

**peat** · 25-09-2020, 11:53 AM

well I kept the faith all the way through with what is currently 15% of portfolio so there is a certain sense of relief
For me the result and the market response re-iterates the solid place this company has as a part of my core portfolio. I have traded holdings on top of that but refused to go to zero despite covid.
Thanks for coming through HLG and I doubt I will sell this core holding at any level now.

PS tbh I'm a bit disappointed Couta.

Going in and out of quality shares is a choice, of course but it adds to human error possibilities. A portfolio of quality lessens the number of decisions that need to be made.
I am taking on board the lesson to not get shaken out with quality companies. This time I passed the test.