HLG - Hallenstein Glasson

[James108]

Yea I realise the change in equity reflected a change in financial instruments. I figured a $300k gain on equity reflects that if there was a 10% change in NZD/USD, payments to suppliers would be $300k more than if the hedge was not in place. So if the hedge covers 30% of their payments if the current NZD/USD is maintained would this increase expenses by $1M?

I guess what I was trying to find out was the realistic impact on their expenses from the lower NZD (if the current NZD/USD was maintained). I am probably far off base here. I have basic accounting knowledge but would really like to learn more about the finer details like this sort of thing.

Basic economics tells us that an increase in expenses will be taken up by the supplier and consumer so an increase in expense doesnt necesarily translate to the same decrease in profits but I am still interested in the increase in expesne.

[bull....]

after rpretty much reaching the 4 target chart turned down someone wants out bad saw the overhang the other day nearly 250k thet couldn't offload

[TheHunter]

I have basic accounting knowledge but would really like to learn more about the finer details like this sort of thing.

Are you studying by any chance James? When you do a paper on hedge accounting your queries will be answered.

Bull - Let them off load, I could do with a top up.

[James108]

Are you studying by any chance James? When you do a paper on hedge accounting your queries will be answered.

Bull - Let them off load, I could do with a top up.

No, I am actually geotechnical (dirt) engineer.

My accounting experience is limited to highschoo (NCEA level 1-3). Can you recommend any textbooks leading on from high school level?

[TheHunter]

Flick me a private message and we will leave the forum for HLG discussions, otherwise all the punters will be fast asleep after reading hedge accounting chat

[Beagle]

Flick me a private message and we will leave the forum for HLG discussions, otherwise all the punters will be fast asleep after reading hedge accounting chat

LOL, yeah as Paul Henry says, before we lose the will to live. Consumers will have to become accustomed to paying a little more for all imported goods from all sorts of suppliers including HLG. Any attempt to analyse this beyond this simple reality is wasted intellectual energy IMHO.

[winner69]

LOL, yeah as Paul Henry says, before we lose the will to live. Consumers will have to become accustomed to paying a little more for all imported goods from all sorts of suppliers including HLG. Any attempt to analyse this beyond this simple reality is wasted intellectual energy IMHO.

Agree ....cost goes up + mark up stays the same = higher selling price .......and if they clever MORE DOLLARS than before

High $ (ie price deflation) not always good for retailers

Roger, that very good of you to help out with hedge accounting. Well done

[pennyacw]

Does anyone have any insight or information on the supply chain / inventory management strategy this company follows?

[couta1]

Through the MA 200 line, looking very tempting now.

[Beagle]

Does anyone have any insight or information on the supply chain / inventory management strategy this company follows?

Average inventory is only 2 months sales. These guys are the best in the business at turning stock into cash and run a well managed efficient and high quality operation. It hurts to see the SP being marked down so aggressively. I hold and will add more if this situation gets any more irrational as this stock has been an exceptional dividend payer year in and year out and has a bullet proof balance sheet that's clean and tidy. I will update PE and gross divvy yield as soon as I get time based on the closing SP. The investment case is compelling at this lower level. Guidance at the last update was very strong and concerns over the effects of a lower currency have clearly been more than fully reflected in the recent SP correction. Great cash cow, I will BUY as soon as the Greek situation gets clarified.