HLG - Hallenstein Glasson

[winner69]

That much touted 11% sales increase over last year in first 10 weeks of new year ...ie August/September and a bit of October

Has to be seen in the context of what the market / sector

ABS report Clothing etc retail sales in Australia down 11% in August. September number out Wednesday

NZ Stats Electronic Card Spend had Apparel sales in NZ down 12%

Wow - HLG group sales up 11% when market / sector down 11%/12% - huge share gains - amazing effort

Selling heaps more when clothing sales remain in the doldrums

What a resilient brand Glassons must be ...amazing stuff. (Hallensteins remains a real dog I reckon)

[Beagle]

Excellent point mate.

What if they can primp Hallensteins back into good shape as well ?

[winner69]

Excellent point mate.

What if they can primp Hallensteins back into good shape as well ?

Imagine what would happen if Di came back

[winner69]

Interesting article eZ SMH

Has COVID-19 changed shopping forever?

https://www.smh.com.au/business/comp...28-p569fm.html

Fascinating bit -

Every dollar spent on e-commerce requires four more metres of space than shopping through traditional bricks-and-mortar stores, says Richard Seddon, industrial manager with the $8.4 billion diversified developer Mirvac.

It’s taken up by storage, sorting, deliveries and returns - nearly half of all clothes bought online get sent back by consumers. All this need for space is causing a surge in demand for warehouses across the country.

[couta1]

When I called $6 others were 'skeptical' & now we are pulling numbers out of a hat to try and ramp it up beyond reasonable.



Disc: hold, but not buying.

Sounds like a cautionary tail.

[Mr Slothbear]

Interesting article eZ SMH

Has COVID-19 changed shopping forever?

https://www.smh.com.au/business/comp...28-p569fm.html

Fascinating bit -

Every dollar spent on e-commerce requires four more metres of space than shopping through traditional bricks-and-mortar stores, says Richard Seddon, industrial manager with the $8.4 billion diversified developer Mirvac.

It’s taken up by storage, sorting, deliveries and returns - nearly half of all clothes bought online get sent back by consumers. All this need for space is causing a surge in demand for warehouses across the country.

warehouses out in industrial parks and the boondocks much cheaper than those fancy prestigious flagships stores on the queen streets and cashel malls though aren’t they

[Beagle]

Sounds like a cautionary tail.

Is that caution misplaced though with WHS and Briscoes on a PE of 14+ and HLG on maybe just 10 ?
With investing its best not to let such cautionary tails get the better of you, keep that tail in check if you like https://static.boredpanda.com/blog/w...413a6__880.jpg
and also assess the opportunity not just the risk
Sure keep a close eye on tails of risk but don't let the tails blind you to the opportunity and effectively allow the tail to wag the dog. https://www.bing.com/images/search?v...RST&ajaxhist=0

For instance consider this... HLG now have a proven multi year track record of growth in Australia with Glassons and consider the size of the addressable market there whereas neither Briscoes or WHS are in Australia. Briscoes and WHS are covered by analysts, Hallensteins doesn't appear to be well covered, if at all. What happens if it gets into the NZX50 and analysts start covering it ? Hmmm ... If things go as I hope over the next few years I'm going to need a bigger dog food bowl for my dividend feeds https://www.bing.com/images/search?v...RST&ajaxhist=0

[winner69]

Next review of NZX50 next month isn't it?

Hmm

[Beagle]

I was more saying in these uncertain times Id rather have the money in a company that's stood the test of time.

You're on to it mate. HLG has proven to be a "dogged" performer in good times and bad. Listed on 1 October 1947, its now in its 74th year.
Has been listed on the market longer than any other company on the NZX. That has to be worth something and definitely is as far as I am concerned.

[Beagle]

Next review of NZX50 next month isn't it?

Hmm

Yes. Hmmmmm Got to have another think about my portfolio allocation. Bible says to invest in 7 or 8 things. Importantly what it doesn't say is in equal measure.
Not too many really good value opportunities in the market like this and OCA which are priced as no growth companies and you ostensibly get the growth for free.

Might have to give this one the OCA portfolio sized treatment.