HLG - Hallenstein Glasson

[couta1]

Just curious, couta, have you ever been tempted to trade a portion of your XXXOS holding? EG, if I look back to the end of 2018/beginning of 2019, when HLG fell from the high $5's to $4, did you consider selling when the SP fell and buying back in at the low? Or are you firmly buy and hold and top up with this particular baby?

I'm curious because this is a strategy I have considered trying with a couple of my very very very small holdings. But never had the kahoonas to try it yet!

This is the my only true long term hold that isn't traded so I've used this as my discipline stock to keep a bit of balance besides I've invested a good chunk of my wife's money in this stock at $3.50 and she loves the divvies.

[oldtech]

Cheers couta, appreciate your input as always!

[allfromacell]

Does anyone know why the dividend aren't eventually split over the year? They always have one in December and then another in April which is a bit annoying.

[BlackPeter]

Does anyone know why the dividend aren't eventually split over the year? They always have one in December and then another in April which is a bit annoying.

I guess this just reflects the business and earnings cycle ...

[winner69]

If you ignore (or eliminate) the period when those impatient Aussies were buying up big one could say that HLG current share price is at an ALL TIME HIGH


And likely to go higher in these days of ultra low interest rates

And to that night some though the share price would go back into the low 4s.


Cool eh

[Beagle]

Only solid is an understatement .....awesome amazing when you take into the poor consumer confidence in NX, retail recession in Australia along with lower exchange rates compared to the previous comparable period and higher wages costs putting some pressure on profitability. However this very well managed company has ameliorated the effects.

Growing profits in this environment awesome amazing

Had a bit of time to reflect on this while on holiday, helped by Coutts reminding me of how many he and his wife have. Probably solid and very credible effort is a bit of an understatement. I think management have proven over the long term this is a very resilient business too.

Quite some time back I took my money off the table after ostensibly doubling it since the late $2's in late 2016 on the grounds that at $5.50 it was fully priced.
At that time 10 year Govt stock was ~ 3% and its now ~ 1.1%. My thinking over my holiday week centered on to what extent fair value has moved up given the extreme move down in the risk free rate and the 100 year lows in interest rates.

I think in the rush to chase sustainable yield this one has been a bit overlooked and its longevity on the market, track record of dividend payments and the 100 year lows in interest rates that appear to looking to stay low for the foreseeable future, fair value is now materially north of $5.50.

Disc: I bough some this morning and am looking to accumulate more on any weakness.
Gross yield at $5.60 assuming 44 cps annual dividends is 44 / 0.72 = 61.11 / 560 = 10.9% and I think its sustainable at that level as the latest consumer confidence seems to be holding up reasonably well. I think they can navigate their way through higher wages and rent costs and the slightly lower currency and am prepared to back management to do so. I am looking to move up to a ~ 5% portfolio allocation.

[winner69]

Yep ...good move beagle

I reckon $6 plus in inevitable in the near future year

[Beagle]

Yep ...good move beagle

I reckon $6 plus in inevitable in the near future year

Thanks and yeah, I agree. Big 4.5% jump in apparel spending in August ! http://www.scoop.co.nz/stories/BU190...unces-back.htm

[winner69]

Thanks and yeah, I agree. Big 4.5% jump in apparel spending in August ! http://www.scoop.co.nz/stories/BU190...unces-back.htm

....and more importantly apparently Aussie retail is looking a lot brighter as well.

[Beagle]

....and more importantly apparently Aussie retail is looking a lot brighter as well.

I reckon Coutts could be up for the milestone of doubling his original $3.50 to $7.00 next year. He's got truckloads so that'll be happy days,