HLG - Hallenstein Glasson

[Leftfield]

SP has come back down to earth a bit. I have to admit I'm a bit concerned about all their sales at the moment. In the last two weeks I've been sent two 45% off everything vouchers, alongside a string of other offers like three tees for $30. I bought brown shoes for $55 dollars with the discount. They surely can't be making much margin on that when I usually spend $150 on shoes.

While I'm impressed by the strong following HLG has with ST advocates and appreciate HLG dividend yield is attractive for some, I personally don't invest unless I can see a trend of strong growth ahead for at least 5 yrs ( i.e. above average NZX top 50 growth.)

Articles like this which report on the closure of 15% of Macey's US stores and a Credit Suisse prediction that in 2017 there will be 8,600 store closures in the US versus 2,056 in 2016, make me think that retail in NZ will at some stage be caught by these US trends. Mr Market seems to be agreeing with this sentiment at the moment.

(Disc; not a HLG or WHS holder, nor likely to be anytime soon)

[couta1]

While I'm impressed by the strong following HLG has with ST advocates and appreciate HLG dividend yield is attractive for some, I personally don't invest unless unless I can see a trend of strong growth ahead for at least 5 yrs ( i.e. above average NZX top 50 growth.)

Articles like this which report on the closure of 15% of Macey's US stores and a Credit Suisse prediction that in 2017 there will be 8,600 store closures in the US versus 2,056 in 2016, make me think that retail in NZ will at some stage be caught by these US trends. Mr Market seems to be agreeing with this sentiment at the moment.

(Disc; not a HLG or WHS holder, nor likely to be anytime soon)

Not into retail stocks, formally held WHS/KMD(Both sold for losses) and briefly BGR when it was $3 (It crept up to over $4 by stealth and would be the best and most stable retail stock on the NZX IMO) HLG would be the next best but with a lot more volatility. PS-This could be worth a punt if it gets close to or under $3 again.

[percy]

I sold the balance of our HLG holding on 26-4-2017,as I think retail is starting to really struggle again.
W69 our little gem LOV [asx] came out with a great profit upgrade today,so still the odd retailer doing well.It is the only retailer I hold and I only have a small holding.

[LAC]

LOV, I also bought a tiny holding after doing some research after you mentioned it. Contacted some friends in South Africa and they say Lovisa is seen as a premium store there with a cult following. Will hold until the demand stops I guess.
HLG I didnt buy even though the PE looked good because H&M and Zara seem to be some serious competition when walking through the stores in Sylvia Park. I think they will open a few more stores soon.

[Raz]

I sold the balance of our HLG holding on 26-4-2017,as I think retail is starting to really struggle again.
W69 our little gem LOV [asx] came out with a great profit upgrade today,so still the odd retailer doing well.It is the only retailer I hold and I only have a small holding.

Agree retail is turning and some real economic issue building up in NZ in this sector. Been selling gradually as when you have a very larger parcel you have to be patient...

[Beagle]

I got to thinking today its a long time between drinks for the next dividend in December...lot of water to flow under the bridge between now and then. Sold a few more myself.

[winner69]

I got to thinking today its a long time between drinks for the next dividend in December...lot of water to flow under the bridge between now and then. Sold a few more myself.

Remember mate I told you a couple months ago that this retail sector was starting to struggle and HLG's H2 probably wouldn't be too flash ......but you hung in there eh

Disappointed that your faith in Di the miracle maker is waning. Bit sad

I reckon good buying around 280 (again) in a month or so ......but I won't be buying your cast offs at current prices.

[percy]

LOV, I also bought a tiny holding after doing some research after you mentioned it. Contacted some friends in South Africa and they say Lovisa is seen as a premium store there with a cult following. Will hold until the demand stops I guess.
HLG I didnt buy even though the PE looked good because H&M and Zara seem to be some serious competition when walking through the stores in Sylvia Park. I think they will open a few more stores soon.

I have started a new thread for LOV on the ASX.

[JeremyALD]

Roger, if your main reason for buying into Hallensteins is the dividend yield why would you sell given the short term fluctuations? The performance of Hallensteins has been strong this year and even a weaker second half still sees them in much better shape than 2016. Hallensteins has shown good performance in a competitive environment so I see no reason why the dividend story won't continue. In saying that I won't be looking to top up until it hits $3 or so

[Beagle]

Roger, if your main reason for buying into Hallensteins is the dividend yield why would you sell given the short term fluctuations? The performance of Hallensteins has been strong this year and even a weaker second half still sees them in much better shape than 2016. Hallensteins has shown good performance in a competitive environment so I see no reason why the dividend story won't continue. In saying that I won't be looking to top up until it hits $3 or so

Hi mate,

Clear break down through the 100 day MA at $3.20. I am becoming concerned that technically this looks set to go down under $3 again. Weaker currency won't be helping. Sales for first seven weeks of new season up 5%, prior to that they were up close to double digits. Lots of water to flow under the bridge between now and December. I still hold some and I'll be back for a bigger holding later