A possibility of a reduced profit not necessarily makes HLG a bad investment.
HLG might not be able to match last years profit but I would have thought that for an well established company like HLG and the sector they are in this could be expected.
On the positive side HLG had a cash and cash equivalent of 23.7mil this was more than the total liabilities of 22.8mil at the start of this financial year. Some unfavourable times are likely tougher on HLG competitors which are likely to have more leverage. It might even shake out some competition or reduces new competitors.
HLG might not be able to match last years profit but I would have thought that for an well established company like HLG and the sector they are in this could be expected.
On the positive side HLG had a cash and cash equivalent of 23.7mil this was more than the total liabilities of 22.8mil at the start of this financial year. Some favourable times is likely tougher on HLG competitors which are likely to have more leverage. It might even shake out some competition or reduces new competitors.
I agree. I reduced holding a while ago but still hold some. Good company and with any luck the shares will be over sold some time in the future and there will be an opportunity to top up again.
Yes a good solid well managed company with excellent stock management and a strong balance sheet but nonetheless facing strong headwinds which the company itself is reluctant to at this stage quantify but has warned twice and this time with a price sensitive tag. Profit warning x 2 = cause for genuine concern as far as I'm concerned. Not sure why astute investors didn't get out at $3.80 after the first warning, go figure ? With relentless growth in internet shopping and ever increasing mall rents this has all the hallmarks of a value trap to me. I'm with Winner69 on this one. Profit reduction could get ugly.
Roger re the last sentence, have you been on their website? It's very good, I dont see them getting left behind in that regard, ie they're holding their own with internet shopping. In fact perhaps this will help them keep costs down by moving towards an online distribution system. They may even be able to leverage this move online to negotiate lower mall rents.
Whew sold like a mth ago with mini profit..all malls are dying a slow death! the thing with HLG is they have addressed the issue and have good online system. Lot of people(younger ones) I know order online. Good Co..keeping an eye to come back.
The headwinds of FX rates have been priced in for some time IMO... the question is how by much (i.e. could the impacts be bigger than expected) & are holders willing to hold during these times.
Slightly off topic, but gv1, if all the malls are dying a slow death, why are both St Lukes and Sylvia Park in Auckland looking to expand substantially , plus the big new one out west Auckland, and big overseas shops are looking to go into these malls. They can't all be getting it wrong!
I will agree that outlets such as HLG will be competing with online sales, however if they can get a good website going they maybe able to survive for awhile yet
I also sold awhile ago thinking that margins are getting squeezed and the dividend may not be able to continued at current rates
Who buys clothes online? I genuinely do not like clothes shopping but I struggle to see the practicality of buying clothes online?
Access to more selection / cheaper prices. Search anything on online spending, plenty to back up the massive increase via this medium. While a threat, HLG's online platforms & social media mediums are on par. A good way that isn't capital intensive to reach new markets as well.
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Originally Posted by forest
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