HLG - Hallenstein Glasson

[Beagle]

Checked my portfolio allocation and its exactly 5% so I am quite sure I am not suffering from confirmation bias or myopic vision and can clearly analyze the risks and potential rewards. More than happy to continue to hold with my free carry position.

[iceman]

I am with Beagle and couta1 on this one. Have been slowly accumulating for my income portfolio. Has just overtaken HGH as 18% of my NZX portfolio. Mostly due to reductions in electricity generators. Beagle has laid out very clearly why he likes HLG going forward. Basically a retail company that is growing online sales very fast and growing fast inAustralia. Debt free with very experienced managemaent

Equally convincing is the other side of the coin, Maverick, BP and others. ( winner69 somewhere in between) Fascinating. I’m firmly in the former and continue accumulating as cash flows allow. Will stop at 25% of portfolio ( and get wife to buy more into hers) though

[Beagle]

I really do like the way HLG pay out their massive end of year dividend about a week before Christmas. There's very few other dividends at that time of year (Kingfish, Barramundi, Marlin are noteable exceptions), but plenty of Xmas and holiday costs so for me its perfect timing.

[winner69]

Westpac guru says ”Households wallets and purses snapped closed in October, with retail spending levels down 0.6% over the month. That was weaker than we or analysts more generally had expected.”

But they were 3.4% higher than October last year (exc MV stuff)

Mind you clothing etc was down 1,4% on last year

No worries for HLG - as long as they hold their own in NZ it’s all OK because the growth is coming from Australia

[percy]

Walked through Westfield Riccarton on Friday.
Lovisa. Busy.
KMart.Actually decided on a shirt,but put it back, as the line at the check out was too long.
Glassons.Store looked good and they were busy.
Hallensteins.Not busy.Merchandise was not to my liking.
H&M.Not busy.One shirt I liked ,but could not figure out their sizes.
Farmers.Not busy.Menswear dept was very badly set out.
Cotton On and other rag trade stores.Very quiet.

[macduffy]

Ah, so there's who the mystery shopper is in Westfield Riccarton!

[percy]

Ah, so there's who the mystery shopper is in Westfield Riccarton!

If I get time I will check out some Sydney stores this weekend.
Hopefully I will not be forced to go shopping.!!.lol.

ps.Flying home on one of those aircraft with the cracks.

[Beagle]

HLG's track record of eps (rounded to one decimal place)
2014 23.9
2015 29.2
2016 22.9
2017 29.0
2018 45.9
2019 48.7

Average annual compound growth rate in earnings per share over the last 5 years = 15% per annum.

Comparing Turners to Hallensteins is like comparing chalk to cheese and yet the latter trades at only a PE premium of 2 above Turners.

Current year prospects are also good with the latest information available that sales are growing at over 7%.
Of course the naysayers will tell you that HLG is a cyclical company at its peak and that the internet of everything is going to undermine their business model something terrible. Various naysayers have been saying that since I first bought at $2.70 in 2016 and they've been wrong over and over again.

Gross yield now is 44 / 603 (6.27-0.24) (I am working this off the theoretical ex divvy price as the very near term divvy of 24 cents is probably already baked into the price) = 7.3% fully imputed = 10.1% gross, so the yield is better than Turners too.

I think this is a clear case where holding some of each would lead to diworseification. HLG my preferred, and only retail stock I own. I am inclined to buy more after looking at the facts regarding their growth rate but will wait for the annual meeting update. Coutts appears to be very well positioned.
I am encouraged by the ongoing strong growth and future growth prospects of Glassons in Australia.

[iceman]

Good work thank you Beagle

[percy]

I think a lot of us under estimate the huge importance of HLG's online sales .
Their online division has had incredible growth,which is continuing.