HLG - Hallenstein Glasson

[Beagle]

I for one would be bitterly disappointed if HLG was taken over. So much heritage being N.Z.'s oldest listed company and such a brilliant track record with dividends and I never lose sleep wondering about the caliber of governance or management. Excellent track record with the growth of Glassons Australia and huge ongoing growth potential.

[BlackPeter]

20% is not control - 76% is control. So yes, it is possible for a takeover but improbable as the company is well run and growing. Matter of the market progressively valuing the shares to its proper level.

Mmh - we talked about "take over", not about "control".

I took that as a complete take over, but sure - somebody could make an offer for 100% of the shares (as they have to) and end up with 80 % - well, 76.5%, given that insiders hold in total 23.5% of HLG.

I leave it up to others to decide how likely this is that a majority sells out if the cornerstone shareholder does not sell.

But sure, some people say pigs can fly ... and - if you throw them down a cliff, they do :

[BlackPeter]

Bit of an overreaction there, BP...I'm not saying it's worth 40 bucks, all I'm suggesting is it's probably undervalued on the international stage, doing bloody well sinking it's teeth into Oz, and likely not going unnoticed by some of it's larger competitors. One way to deal with pesky competition...buy them out.

Sorry - I just find it hard to to take anything coming from SimplyWallStreet serious ... you could as well rely on the position of the tea leaves in your morning cup of tea.

... but hey, I am sure - as any other broken clock - from time to time they might get it right.

[Waltzing]

Most european and US based competitors are busy right now.

Its not in the NZx50 yet and its not a take over target because the big retailers are busy and HLG balance sheet is small.

Its not a big cash cow delivering over 100 million of profit yet and on dividend basis its fairly valued at this time.

But with Aus spending up large for years to come and a damn the torpedo's from the treasury GDP in the big dry looks sets to hold up the retail market for a decade to come.

Now if NZ was to lower it tax rate to 20 percent for companies then the share price might start to take off.

[Habits]

I for one would be bitterly disappointed if HLG was taken over. So much heritage being N.Z.'s oldest listed company and such a brilliant track record with dividends and I never lose sleep wondering about the caliber of governance or management. Excellent track record with the growth of Glassons Australia and huge ongoing growth potential.

If it did would it be the end of an error

[Waltzing]

While Mr B is enjoying his saturday morning herald and musing over the coming budget while sipping his tea what does he think of page 7 of the interim report.

[Beagle]

While Mr B is enjoying his saturday morning herald and musing over the coming budget while sipping his tea what does he think of page 7 of the interim report.

A few musings, (in between looking at boat brochures)..bit rough making the old dog think too hard on a Saturday
1. Its clear there was a catch up on supplier payment terms as payments to suppliers represented nearly 64% of receipts from customers which is a much higher ratio than what is suggested by their gross profit percentage. This will represent some reversal of previous supplier terms accommodation during Covid.
2. There were two dividend payments in the 6 months, one of which was a catch up for their conservative position of holding back the April 2020 dividend during Covid.
3. Their cash position remains very strong and capex during the period under review was minimal.
4. They look extremely well positioned to roll out further physical store presence in Australia building upon their already very strong growth there in recent years.

[Balance]

Mmh - we talked about "take over", not about "control".

I took that as a complete take over, but sure - somebody could make an offer for 100% of the shares (as they have to) and end up with 80 % - well, 76.5%, given that insiders hold in total 23.5% of HLG.

I leave it up to others to decide how likely this is that a majority sells out if the cornerstone shareholder does not sell.

But sure, some people say pigs can fly ... and - if you throw them down a cliff, they do :

Think of RBD and JLG - difference I will concede is that there were no entrenched cornerstone shareholders in the two companies but decisive control have been taken with full takeovers.

Pay a high enough price and you can always persuade enough to sell.

As mentioned however, I do not see the possibility of HLG being taken over.

[Habits]

Think of RBD and JLG - difference I will concede is that there were no entrenched cornerstone shareholders in the two companies but decisive control have been taken with full takeovers.

Pay a high enough price and you can always persuade enough to sell.

As mentioned however, I do not see the possibility of HLG being taken over.

Re JLG tony is holding 80.8% and I notice his CFO had 2m shares a few weeks ago but its now 2.5m or 2.75%. The extra 500k were not bought on market and the cash raise is 1:14 or 142000 shares. However it was, it puts them in a closer position to buy out the minorities.

[Balance]

Re JLG tony is holding 80.8% and I notice his CFO had 2m shares a few weeks ago but its now 2.5m or 2.75%. The extra 500k were not bought on market and the cash raise is 1:14 or 142000 shares. However it was, it puts them in a closer position to buy out the minorities.

Let me assure you that there’s a rock solid 10%+ minority in JLG who will not allow that scumbag Falkenstein to steal the company without paying a very very full price.

Which he may do (pay a very very full price) just to get rid of them.