HLG - Hallenstein Glasson

[couta1]

Can never have too much of a great thing - that’s Beagle’s philosophy?

You can't have too many until you do.

[nztx]

Thanks for your input winner. I wont take offence as the “dumb” idea is not my own.

I’m a director and I take that duty very seriously. Call me dumb if you want but my shareholders sure appreciate it, thats why when i go to them with business ideas they invest without question.

I’m on sharetrader to share compare ideas - and learn. Not sure what the above interaction is all about , but i definitely don’t feel I’ve learnt anything useful.

Let me clarify what I was initially suggesting.

Alot of seasoned posters on here have said how undervalued the company is, on pricing multiples and that its only heading north. I’m onboard with that narrative (significantly), im not a short term investor like you insinuated. I do believe that the share price is heading in the right direction, however in looking through the history of this share price it seems to reach these prices and then at the first sign of trouble it drops substantially back down, which based on this companies fundamentals doesn’t make sense.

I believe and others have mentioned that a significant reason this happens is the size of the free float, and that it doesnt garner enough coverage from the brokers.

What I was suggesting is that if they considered a stock split it may help with any liquidity issues they have to get onto the index.

I saw a comment today on another thread that summerset did this a way back and look where their shareprice is now.

More shares = more investors = more coverage = more value - Right?

Is the above suggestion that outrageous? sorry if I’m completly missing something here.

My next confusing thought is this; as a long term shareholder arent you interested in the long term value of your portfolio growing? I know I am, so I dont get the mentality of “the boards to busy running the company to worry about the share price” especially when long term posters on here have demonstrated that this company is still being materially undervalued ( I do recognise its heading in the right direction).

Again, maybe Ive got this wrong somewhere, but like I said I’m here to learn, so educate away!

PPH has recently announced a 4:1 Split coming up & on that looks like it's mostly gone south from higher $9.30/9.40 levels since

Nothing wrong with PPH earnings looking forward either

Why reorganise the HLG capital structure when it's working just fine right now with market forces at play ?

Beagle & I may have to start buying a few less in future to help the share liquidity along though

Mind you no-one would mind at all, if unnamed punters at large decided that HLG looked like tomorrow's MFT
and voted accordingly

[winner69]

Hey Jim, nothing personal intended in my responses.

The maximising shareholder value imperative debate has been going on for a while and no doubt will continue - there are obviously a few different views.

Best not discussed on this thread as it will upset a few as not on topic. One day soon I’ll get around to outline my thoughts and start a new thread and anybody interested can take it from there.

In HLGs case as long as they continue to look after customers and Keep them happy and give them long term value they’ll do well. After a company isn’t worth much without customers. The market will decide what the company is worth (throughout the business cycle). Of course we need to remember that the value given to it is rather subjective at the best of time. I also believe ‘artificial’ means to try and influence a share price never work in the long term.

Good day for HLG share price today ....all time high coming soon.

[jimdog31]

PPH has recently announced a 4:1 Split coming up & on that looks like it's mostly gone south from higher $9.30/9.40 levels since

Nothing wrong with PPH earnings looking forward either

Why reorganise the HLG capital structure when it's working just fine right now with market forces at play ?

Beagle & I may have to start buying a few less in future to help the share liquidity along though

Mind you no-one would mind at all, if unnamed punters at large decided that HLG looked like tomorrow's MFT
and voted accordingly

PPHs split was definitely not the reason for my split suggestion, completly different set of scenarios happening there, they arent tightly held and they don’t suffer from low liquidity.

I Think their price drop is more related to inisder selling, which as winner hinted at isnt likely to happen with HLG

I do agree the market pricing is working fine right now, im more worried about down the track with any percieved wobbles as in the past the share price goes south fairly quickly with the low levelnof retail investors on the register.

Maybe ill keep all my outlandish ideas on the skt thread instead 😜

[jimdog31]

Hey Jim, nothing personal intended in my responses.

The maximising shareholder value imperative debate has been going on for a while and no doubt will continue - there are obviously a few different views.

Best not discussed on this thread as it will upset a few as not on topic. One day soon I’ll get around to outline my thoughts and start a new thread and anybody interested can take it from there.

In HLGs case as long as they continue to look after customers and Keep them happy and give them long term value they’ll do well. After a company isn’t worth much without customers. The market will decide what the company is worth (throughout the business cycle). Of course we need to remember that the value given to it is rather subjective at the best of time. I also believe ‘artificial’ means to try and influence a share price never work in the long term.

Good day for HLG share price today ....all time high coming soon.

All good winner, like I said I didn’t take offence, was more confused as to why the idea wasn’t properly considered.

Differing views are what makes a market work right?

Short and long, bull and bear, ta vs fa , value vs growth, yield vs share price.....

All time high you say - good time to split ?? 😂

[nztx]

PPHs split was definitely not the reason for my split suggestion, completly different set of scenarios happening there, they arent tightly held and they don’t suffer from low liquidity.

I Think their price drop is more related to inisder selling, which as winner hinted at isnt likely to happen with HLG

I do agree the market pricing is working fine right now, im more worried about down the track with any percieved wobbles as in the past the share price goes south fairly quickly with the low levelnof retail investors on the register.

Maybe ill keep all my outlandish ideas on the skt thread instead ��

Insider selling could be the case with PPH indeed.

Perhaps MFT is a better comparison on comparable issued shares 100 million for MFT
with just shy of 60 million for HLG

MFT obviously must believe in retaining Shareholder value in their SP (which hit $60 today)

There is no reason why HLG could not be taking similar stance, which could do similar
and see SP advance north of present values.

Obviously comparable Div Yields differences between the two exist with respective SP's for each

Xero in not paying Dividends along with ATM similarly retain value in their respective SP's

A larger Share Register obviously means higher Registry costs, whilst a smaller
Register may contain a higher degree of long term holders - translating into perhaps
less market liquidity accordingly, less cost on the company & loyal bunch of holders.

Would a HLG share split necessarily see more scrip on the market or similar proportionate
holdings retained by the group of loyal stakeholders, as currently exists ?

I dont see major HLG stakeholders selling down if share split was undertaken, but may be wrong.
I certainly wouldnt, but would look at adding further to the current pile

In the scheme of other offerings on NZX $6.00 more or less is not exactly a high SP
for a quality performing company with good consistent established past record

[Cyclical]

More shares = more investors = more coverage = more value - Right?

Hey jimdog, I'm not sure I understand your logic. If it was as simple as that, wouldn't all stocks be at BLT type prices? It might grab the attention of a few beginner investors who don't understand that there is no direct correlation between the face value of a share and the value of the company (my mother springs to mind), but other than that, I'm struggling to see any real positive. What am I missing?

[Cyclical]

You guys like to see who's got the biggest one, it would be good to hear more about the not so good returns for a change.

You can't have too many until you do.

You've probably got a stomach churning story you could share on this one to temper the somewhat bullish mood around here...keep it to yourself, won't you!

For me, average buy is in the 3s and it's close to 30% of my portfolio - doesn't help that it keeps going up in value! Average would be somewhat lower if I hadn't lost my bottle with falling knives on a couple of occasions. It's a bottom of the drawer stock for me, I'll enjoy that divvy yield for a long time to come I hope.

[jimdog31]

Hey jimdog, I'm not sure I understand your logic. If it was as simple as that, wouldn't all stocks be at BLT type prices? It might grab the attention of a few beginner investors who don't understand that there is no direct correlation between the face value of a share and the value of the company (my mother springs to mind), but other than that, I'm struggling to see any real positive. What am I missing?

I’m not advocating infinitely more shares, i’m advocating more shares in the retail float, ie being freely traded. Alot of the shares on this register are being tightly held.

i think you are oversimplifying my oversimplification

[jimdog31]

Insider selling could be the case with PPH indeed.

Perhaps MFT is a better comparison on comparable issued shares 100 million for MFT
with just shy of 60 million for HLG

MFT obviously must believe in retaining Shareholder value in their SP (which hit $60 today)

There is no reason why HLG could not be taking similar stance, which could do similar
and see SP advance north of present values.

Obviously comparable Div Yields differences between the two exist with respective SP's for each

Xero in not paying Dividends along with ATM similarly retain value in their respective SP's

A larger Share Register obviously means higher Registry costs, whilst a smaller
Register may contain a higher degree of long term holders - translating into perhaps
less market liquidity accordingly, less cost on the company & loyal bunch of holders.

Would a HLG share split necessarily see more scrip on the market or similar proportionate
holdings retained by the group of loyal stakeholders, as currently exists ?

I dont see major HLG stakeholders selling down if share split was undertaken, but may be wrong.
I certainly wouldnt, but would look at adding further to the current pile

In the scheme of other offerings on NZX $6.00 more or less is not exactly a high SP
for a quality performing company with good consistent established past record

You make some valid points, and thats what I was looking for when I raised the idea - discussion

My underlying point was to try and help with the liquidity and inclusion in the nzx50, and therefore more broker coverage.