dear Golden...please stop "rubbing it in".....cheers enjoy...
Keep rubbing, gc - seems to be doing the trick like rubbing Aladdin's lamp!
It could back up one day to the days when it was over $2.50.
One thing that THL has shown (like Skellerup and Hellaby) is that good management can turn the volume into profits - despite headwinds of exchange rate.
Keep rubbing, gc - seems to be doing the trick like rubbing Aladdin's lamp!
It could back up one day to the days when it was over $2.50.
One thing that THL has shown (like Skellerup and Hellaby) is that good management can turn the volume into profits - despite headwinds of exchange rate.
What did those Aussies offer for THL a few years ago .... $2.70 odd wasn't it
But those Aussies didn't really know the value of money did they
I started to get enthusiastic yesterday after reading the research but then I got to wondering....
Its a notoriously cyclical stock on a trailing PE of 14.5 compared to AIR on 9 and a bit which is a company that's also confident of earnings growth and perhaps more importantly is gradually building its gross sales numbers.
Even if THL make next year's confident prediction of $15m, (early days to make that call with a lot of water to go under the bridge for the 2015 year) that puts them on a PE of 9 for 2015.
Its a small company and much more illiquid than AIR and interestingly I noted virtually no top line revenue growth at all from THL so effectively profit growth is coming solely from Rob Campbell's magic in wringing more efficiency out of the business....and of course there's a natural limit to how far than can progress.
A further reality nugget popped up when I noted tax losses are now extinguished and they're moving to a tax paying position this year which will obviously have quite an effect on profits in future years, whereas AIR are paying hefty taxes already. I was getting all excited and then reality set in. That said its probably better value than most companies on the NZX and provides diversification to one's portfolio.
For my money, I'll just cuddle up to my favourite stock in this sector a bit closer and to heck with diversification. If AIR suffer a downturn I think its more than likely THL will too.
Even if THL make next year's confident prediction of $15m, (early days to make that call with a lot of water to go under the bridge for the 2015 year) that puts them on a PE of 9 for 2015.
Forward bookings give management confidence. I think $15mil will be conservative. In 2H14 they made $8.5 million.
NPAT after tax doesn't tell the true story. Have a look at cashflows. They had $44mill in Operating and investing cashflows in FY14. Market cap of $158mill.
Originally Posted by Roger
Its a small company and much more illiquid than AIR and interestingly I noted virtually no top line revenue growth at all from THL so effectively profit growth is coming solely from Rob Campbell's magic in wringing more efficiency out of the business....and of course there's a natural limit to how far than can progress.
Top line growth is an issue (much like AIR). I think it is management priority to sort out the business first. They are still not satisfied with it's operating performance. They believe that that can wring a lot more out of the business yet. My guess is that acquisitions will be the next growth step.
Originally Posted by Roger
A further reality nugget popped up when I noted tax losses are now extinguished and they're moving to a tax paying position this year which will obviously have quite an effect on profits in future years, whereas AIR are paying hefty taxes already.
THL paid full tax in FY14.
Originally Posted by Roger
If AIR suffer a downturn I think its more than likely THL will too.
AIR is more exposed to the NZ economy. THL is more exposed to international tourism. Remember THL have operations in USA and Australia and most rentals in NZ are from international tourists. Which company is more exposed to Fuels prices and exchange rates? My hunch is AIR.
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Originally Posted by troyvdh
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