HLG - Hallenstein Glasson

[Mudfish]

Can someone please clarify this for me. I think the directors were given shares today as part of their remuneration package. Is this correct or did they use their own money to buy them?

[winner69]

Can someone please clarify this for me. I think the directors were given shares today as part of their remuneration package. Is this correct or did they use their own money to buy them?

Company would have bought shares (on behalf of those involved)

It all works like this (from Annual Report)-

The Company operates an employee share scheme for certain senior executives to purchase ordinary shares in the Company.

The Company provides the employees with limited recourse loans on an interest free basis to assist employees’ participation.

The loans are applied to purchase shares on market and the shares are treated as treasury stock.

The loan amount is the total market value of the shares plus any commission applicable on the date of purchase. Any dividends payable on the shares are applied towards the repayment of the advance.

Shares purchased under the scheme are held by two directors as custodians and vest three years from the date of purchase. In the event the employee leaves the company during the vesting period, the loan is repaid by selling the shares on market. Any gain or loss arising from the sale of shares is included in equity. Refer to note 5.1 for further detail on treasury stock.
In accordance with NZ IFRS 2 this scheme is an equity-settled scheme.

[Cyclical]

Well, in the meantime another juicy divvy payment landed in bank a/c.

Most rewarding to see that in the bank a/c this morning indeed!

Yes indeed. Debating whether that should go straight back into more HLG stock or not and pretend it's a DRP.

[Mudfish]

In a past post, I was thinking nothing but a bright future for HLG and was hoping SP could indeed go to $8. I found it easy to hold pre-divi, as the divi is such a beauty. This side of the divi I have spent a bit of time digging around to see if it is worth holding on during the winter season. I can not for the life of me work out if HLG is in fact a growth story of a cyclic story that has been, temporarily, positively effected by COVID. I see the SP as being valued anywhere between $6 and $8 depending on what PE value is assigned. From the report, 17% sales increase in the first 7 weeks sounds promising but who knows what the sales margins are due to transportation costs? Also, I can't get an accurate hold on the impacts of the wage subsidy, and short recent lock-downs. Basically, I'm confused. Therefore, for the record, I have sold out and no longer a holder. However, I will be watching very closely, if the SP does indeed present a future opportunity, I will be back for that awesome divi. Good luck all, I expect the SP will rocket up now, ha.

[Waltzing]

You can run out of coat hangers. Check the sales of coat hangers.

I think there was manufacture in NZ who made a fortune from them and then bought some race horses.

You can also run out of wardrobe space even when you have clothes in more than one country.

Selling on the highs with this stock has always worked in the past.

Then you end up just throwing all the Huge Boss jackets you buy at the airports on the furniture and your partner starts throwing them at you.

As this whole pandemic thing goes on and on surely they will get sick of buying new clothes.

DISC: holding in multiple portfolios.

[BlackPeter]

In a past post, I was thinking nothing but a bright future for HLG and was hoping SP could indeed go to $8. I found it easy to hold pre-divi, as the divi is such a beauty. This side of the divi I have spent a bit of time digging around to see if it is worth holding on during the winter season. I can not for the life of me work out if HLG is in fact a growth story of a cyclic story that has been, temporarily, positively effected by COVID. I see the SP as being valued anywhere between $6 and $8 depending on what PE value is assigned. From the report, 17% sales increase in the first 7 weeks sounds promising but who knows what the sales margins are due to transportation costs? Also, I can't get an accurate hold on the impacts of the wage subsidy, and short recent lock-downs. Basically, I'm confused. Therefore, for the record, I have sold out and no longer a holder. However, I will be watching very closely, if the SP does indeed present a future opportunity, I will be back for that awesome divi. Good luck all, I expect the SP will rocket up now, ha.

Sounds like a rational decision. Obviously - markets are not always behaving rational ;

Discl: past holder, but subscribing to the cyclical nature theory of HLG as well ...

[dibble]

Sounds like a rational decision. Obviously - markets are not always behaving rational ;

Discl: past holder, but subscribing to the cyclical nature theory of HLG as well ...

Its a curious stock, I sold out a while ago on one of the price oscillations, from memory I think because I thought wearing clothes was just a fad, somehting like that. But got back in last year, uncharacteristically buying low. Think I'll hang on as, despite the chances of it receding again to $3, the crowds I regularly see in the shops and minimal debt thing suggest they will survive and prosper and the divs are worth the trouble. For me any genuine growth is just a bonus.

[Mudfish]

Its a curious stock, I sold out a while ago on one of the price oscillations, from memory I think because I thought wearing clothes was just a fad, somehting like that. But got back in last year, uncharacteristically buying low. Think I'll hang on as, despite the chances of it receding again to $3, the crowds I regularly see in the shops and minimal debt thing suggest they will survive and prosper and the divs are worth the trouble. For me any genuine growth is just a bonus.

Fair enough Dibby. Divi is awesome, I'll be watching through the winter to see if SP slides then I may rejoin you. I bought low $7s so too much risk for me to sit I think.

[Jay]

Finger hovering over the Sell button, Av price around $6.90
Actually lower if I include those in the longer term portfolio, but those longer term hold at this point

Good divi though

[Cyclical]

Finger hovering over the Sell button, Av price around $6.90
Actually lower if I include those in the longer term portfolio, but those longer term hold at this point

Good divi though

No idea how you are structured and what percentages are against what portfolio of course, but in this situation, say you have a 50/50 split between your portfolios and, for argument's sake, your average buy is $6, selling a bunch at ~$7.30 would yield a profit of ~1.30, of which the tax man would probably want to take 43c (at a rate of 33%), which means you're down 3 cents... That little calculation tends to factor into my decision making process when I'm sitting on the fence about something.

Anyway, my average is sub $4, which gives a nice buffer to be able to sit on it long term and reap the divies. I think their growth into Oz, combined with today's low interest rate environment, greatly reduces the chances of this being cyclical to the point where we would see anything like the lows we've seen in the past.