HLG - Hallenstein Glasson

[macduffy]

There's not a lot of top companies on the NZX that offer the trading opportunities that HLG does from time to time. Will be great buying in due course when the downtrend breaks - and equally, great selling, when the opposite occurs!

[Onion]

Hallensteins website says 30% off ...so a bit of a way to go

Yahoo Finance says HLG SP off 29.55% over the last 3 months. So yeah, pretty close to 30%!

[Snow Leopard]

Saw this in the CEO's address:

"Additionally we have a number of new and innovative customer facing technologies in store. “Be the D.J.” where customers can choose their own music whilst they shop."
Could be worth turning up with asking to them play a Shostakovich symphony.

The share market loves an outlook of life is tough, and we do not know whether we will make any profit next year.

So the share price will probably undershoot fair value but until then here is the four yorkshiremen sketch:

[Beagle]

Agree - it is an excellent company operating in a tough industry. Next year maybe $3.00-$3.50 if the summer is difficult and they'll be worth a look again.

Of course they still might surprise in February but my model guesses $20m-$23m for FY19 at this early stage

I've done a bit more work on this now and I tend to agree now with your profit range assessment (while noting its still very early days).
Same store sales growth is negative so there are cost implications there on top of normal price increases for labour, leases power e.t.c. and they are saying margins are under pressure so clear implications there for the gross profit margin which could fall to as low as 57% down from 61% last year and 58.8% the year before. A lot depends upon the level of discounting towards the end of the season of course.

I note they appear to be losing sales momentum as the year unfolds. $21.5m / 59.6m shares gives eps of 36 cps. PE of 10 gives $3.60. Might overshoot on the downside down towards baseline support in the $3.30-$3.40 range. I think this is an "avoid" until Graghar have sold down quite a lot more.

[winner69]

Sales were up 7.2% for the first 7 (actually 8 ) weeks or so and then 4.8% the other day to the end of November and now only 4% up ....

That means the last 10 weeks sales growth has been marginal at best if not negative.

Tough times

Across all brands and both Australia and NZ ....we’ll know in February



"

[peat]

Saw this in the CEO's address:

"Additionally we have a number of new and innovative customer facing technologies in store. “Be the D.J.” where customers can choose their own music whilst they shop."
Could be worth turning up with asking to them play a Shostakovich symphony.

The share market loves an outlook of life is tough, and we do not know whether we will make any profit next year.

So the share price will probably undershoot fair value

I almost commented on the DJ arrangement. Not sure how that'd pan out esp if SL cranks up Dmitri. I reckon some Schoenberg might clear the floors pretty quickly. And of course Sunday morning shopping will always be improved by a Xenakis Threnody right?
But it does show they are always thinking about how to improve their business

Anyway

[winner69]

a bit more

https://www.stuff.co.nz/business/ind...-fitting-rooms

[Beagle]

a bit more

https://www.stuff.co.nz/business/ind...-fitting-rooms

Good move...one's favourite music is soul food and definitely gives you a lift and happy people are more inclined to spend money.

[peat]

the mobile payment units in the shop , and the weekend and evening delivery options for online purchasing are actually quite innovative and customer focussed - not bad for a century old firm.

[Joshuatree]

Dressing the manequins yourself too is great idea!



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