HLG - Hallenstein Glasson

[BeeBop]

I sold my hlg a few weeks ago. I like them just fine, but the don't fit my new strategy, which is to build a buy and hold portfolio. I figure that at any time within the next decade a popular foreign store could set up in NZ. Besides, I'm not sure hlg have been diversifying and growing

Agree with you there mate: wouldn't put it into a buy and hold - doesn't meet my rules although the base metrics do! Again, nothing special about them - aren't H&M moving into AUckland? Can clothe my kid quite cheaply and nicely from H&M (they are in the Gulf and have good stores). Noted last time I was in NZ that Farmers have good offerings now and have some good marketing going on - attended a ladies dressing style evening and they gave out vouchers, so I went into the store the next day and spent 3x the voucher value.

[GR8DAY]

Can someone confirm (or otherwise) that the upcoming divi is fully imputed? I thought I read somewhere that it was but cant seem to find that piece of info again. Thnx.

[winner69]

Can someone confirm (or otherwise) that the upcoming divi is fully imputed? I thought I read somewhere that it was but cant seem to find that piece of info again. Thnx.

Yep - 5.25 cents imputation credits

I think you knew the answer

[winner69]

My not so young neighbour seeking better returns than term deposits bought a lot of HLG for the dividend (and a few other shares). Hasn't owned shares much in his life

He told me over the weekend he is happy as Larry with the dividend but confessed he paid $3.34 for them in January and now laments what he has done (losing money) He said he was pretty dumb eh as he didn't think shares could go down so much.

I told him just to hang in there - it will come right eventually ....good advice?

[GR8DAY]

Yep - 5.25 cents imputation credits

I think you knew the answer

........no didnt know the answer Winner, why would I have asked? (got better things to do like mow the lawns) Sounds like the answer is no.......not FULLY imputed?.......or are you saying the 5.25c gets ADDED to the 13.5c to show a GROSS equivalent dividend of 18.75c........is that how it works? (Im no bean counter)

[Beagle]

I think he'd be better off in a safe REIT like ARG or GMT. PIE status so the 5.1% yield is net in his hands and if he's on the top 33% tax rate that's a (5.1 / 0.67) = 7.6% gross return.

FWIW Chris Lee had a fair bit to say about older investors having to take on board some risk to maintain their income level's in his most recent newsletter and a good mention of REIT's.

HLG look a bit vulnerable to me to further downside but at the right price I'd jump on for another ride around the paddock

[winner69]

........no didnt know the answer Winner, why would I have asked? (got better things to do like mow the lawns) Sounds like the answer is no.......not FULLY imputed?.......or are you saying the 5.25c gets ADDED to the 13.5c to show a GROSS equivalent dividend of 18.75c........is that how it works? (Im no bean counter)

Sorry

Yes thats how it works - ADDED

Get 13.5 cents in the hand and 5.25 cents tax credit.

The 5.25 cents is 28% (company tax rate) of 18.75 cents (13.5 + 5.25) if you wanted to know how its calculated

[winner69]

I think he'd be better off in a safe REIT like ARG or GMT. PIE status so the 5.1% yield is net in his hands and if he's on the top 33% tax rate that's a (5.1 / 0.67) = 7.6% gross return.

FWIW Chris Lee had a fair bit to say about older investors having to take on board some risk to maintain their income level's in his most recent newsletter and a good mention of REIT's.

HLG look a bit vulnerable to me to further downside but at the right price I'd jump on for another ride around the paddock

I tell him that

I asked him why he chose HLG and his other stocks. Answer 'thats what the guys down the bowling club are doing'

I feel there is a lot of ignorance out there and as the oldies move from bank deposits to shares there will much sadness in a year or two when interest rates start rising and share prices (many currently being valued as a bond) start falling

[GR8DAY]

Sorry

Yes thats how it works - ADDED

Get 13.5 cents in the hand and 5.25 cents tax credit.

The 5.25 cents is 28% (company tax rate) of 18.75 cents (13.5 + 5.25) if you wanted to know how its calculated

....many thanks Winner. Sounds even better than I thought.

[winner69]

....many thanks Winner. Sounds even better than I thought.

Don't spend it all at once

You keeping the shares for the next dividend?