HLG - Hallenstein Glasson

[percy]

These are qualiTEE Panel shirts with designs printed all over ,not just an old fashioned little oblong print on the front of the thinnest piece of nano cotton. Get with it Percy; age is no excuse . Postiplus has imitations of everything and serves a purpose for those on a true budget and those scrooges with no taste

I am getting good wear from my "woolie pullies".

[Joshuatree]

True. I did drop in to compare polyprop prices with farmers red dot sale and bought a decent undergarment there a few weeks back.

[Beagle]

Ok time to rerun my dividend yield valuation. I am going to stick to the last five years of results, simply becasue the retail scene does seem to be evolving so fast.

Year	Interim Dividend	Final Dividend	eps
2014	12.0cps	16.5cps	24.2cps
2013	16.0cps	17.5cps	31.3cps
2012	14.5cps	19cps	31.0cps
2011	14.0cps	17.0cps	29.3cps
2010	14.0cps	17.0cps	34.3cps
Total	70.5cps	87.0cps	150.1cps

Payout ratio (5yr average): (70.5 +87.0)/ 150.1 = 105% (Not sustainable?)

Average Annual payout (5yr average): 31.5cps

If we consider a yield of 6.5% over today's business cycle being 'fair', then my valuation for HLG is:

31.5/ 0.065 = $4.85SNOOPY

Well my furry beagle friend - You'd struggle to find a more clean and tidy balance sheet than HLG's one. No B.S. intangible assets or goodwill, no debt other than trade creditors, moderate stock level's and excellent stock turn.
You've answered you own question as to why people invest in this stock...for the excellent dividend feed. When my much loved Beagle, now departed sensed a good feed, she was in with all the enthusiasm of a hungry dog with tail wagging and little pot belly filling up...she could smell a good feed from 100 yards off...so what's wrong with your nose mate You needn't apply for a job at the airport as a beagle hound out there if you can't see the feeding that goes on here..if you can't smell it, I put fair value in bigger font for you so maybe you can see it

[Jaa]

The entrance and potential entrance of the world's large fast fashion retailers, Top Shop, H & M, Zara/Mango and Uniqlo into NZ should be keeping Hallensteins shareholders up late at night.

[Beagle]

So that's why I haven't been sleeping well lol. I haven't heard of any of them but then I am just an average bloke so what would I know about fashion ? Maybe I'm just like other HLG customers...just want good stylish gear at a fair average price and couldn't give a toss about what's the latest trend from overseas unless we're talking about cars or boats

[slimwin]

Top shop/ H&M, Zara/Mango are a tier above HLG I would have thought.

[Regi]

Top shop/ H&M, Zara/Mango are a tier above HLG I would have thought.

Nail on the head. HLG really does (in my eyes) almost have its own market segment and offers quality, very regularly updated and attractively priced fashion. I know for me, and a lot of other guys out there, HLG is just our go-to place for a quick and painless yet successful wardrobe shop when we can't be bothered shopping around. They keep up to date, have amazing turnover, and have deals you can't refuse. Topshop and Zara are definitely a cut above HLG and they charge a premium for that and as a result attract a different type of customer.

And Roger, I'm sure you would know Amancio Ortega Gaona If you've ever visited Forbes He's Mr. Zara.

[Jaa]

Roger, if you don't know who they are you shouldn't be owning HLG shares. Bit like owning Air NZ and having no idea who American Airlines and Eithad are!

Agree that Top Shop and Zara are a tier above, H & M and Uniqlo though aim for exactly the same market and with similar prices to Hallensteins and Glassons. 5-10 of either and probably both in NZ is inevitable in my opinion and will hurt HLG.

Wet Seal Whipped: Expect More Casualties As Fast Fashion Retailers Take Over Teen Market

[slimwin]

Interesting. I've only ever dealt with h&m and zara in europe (being dragged through them). I've heard at least h&m do it different in asia. ie, more budget.

I guess brand loyalty counts for nothing when it comes to young-uns buying clothes. And they may even want to be more 'european'.

Brands come and go though and HLG are still here....

[Beagle]

Brands come and go though and HLG are still here....

Jaa - This. You don't build a brand here in 5 minutes. HLG are on a PE of 11 and a gross divvy of 12.5% based on the $3.35 when I looked at it on 1 July.
Compares to their best retail peer who also have carved out a very well respected niche in the mid price point in their market BRG on a PE of 15.5 and a gross divvy yield of about 6.5%
WHS on a PE of about 17 last time I looked.

Sometimes with investment you've just got to stay focused no matter what the competition is doing because the investment metrics are so compelling and the brand has built a very loyal following.
This statement applies equally to AIR N.Z. on a forward PE of 6.7.

To be honest I have heard of Top Shop and got some feedback from Noodles that its nothing to be really concerned about with their one store in Auckland. Ask him but I think from memory his wife went there and he told me she was pretty underwhelmed....least that's my recollection but you're probably better hearing it straight from the horses mouth, so to speak.