HILLS INDUSTRIES LTD - HIL

[OldRider]

Anyone holding these, with knowlege of the tax implications of their dividend. HIL seems to be unique in offering the opportunity of forgoing the dividend and taking part instead in a discounted bonus SIP.

Whilst I realise this has benefits for long term Australian holders as CGT is avoided, I wondered if a NZ holder was to take part in it, whether we too would be justified in viewing the new shares as true bonus shares unconnected with a dividend and not liable for income tax?

Apart from that they have been a good steady earner for me, bonus shares could put cream on the cake.

Old Rider I think you would find them taxable in NZ but if they are the same as ANZ were you actually get a higher dividend as they are grossed upto include the imputation credits. And increase your capital gains liabillity when sold by Australian. Please excuse if this is not 100% correct as I am working from memory. In my situation in Australia I was not very interested as imputation credits were of far more use.

[OldRider]

ENIGMA: You have raised a point which to date had not dawned on me.I understand you to say that if you were to take the SIP shares you would not get the imputation credits and as well become liable for CGT,I see that, only holders prior to some date years ago would avoid this. Presumaby it is better for you to use the imputation credits towards income tax now, rather than pay CGT later.

Your first line or two interest me though,with your suggestion that the number of SIP bonus shares received may for a NZ taxpayer be on a grosed up amount including imputation credits.I had not realised this could, or ever had occured, this seems to contradict your explanation of what would apply for yourself.

Anyone else with any ideas, perhaps even regarding another ASX company where a DRIP has been used,and what the value of shares taken has been based on. Till now I have always taken the cash, but the thought of being able to use some of
those imputation credits in this way attracts, even if the cost was higher tax, it looks on the surface to be worthwhile.

Old rider The imputation credits are very useful to me. As the grossed up bonus shares could have a very low or nil cost for capital gains Tax as an Australian resident that could be a disaster and I cannot remember the exact detail of the ANZ offer and that came with a warning to consult a tax advisor RE tax implications Here. All holders here have the problem as the shares are taken from the date they were issued for capital gains tax purposes even though the initial hold may be exempt.

[soulman]

Picked this old duster out of the shell. No post since 2004. Must be an old boring stock.

Picked a few up lately for the 5 cents FF divy. I figure fund managers would want to pick HIL up for their portfolio due to the yield. Also, price action today suggest gradual increase. FA and TA looks promising for the short term and profit result wasn't too bad.

[soulman]

Another solid result with net debt reduced. 10 cents div for a FF yield of 8.5%, one of the highest available. Took a couple of position today once I saw their profit result.

[soulman]

HIL has been great for me this year around FEB and AUG (their profit results) and I usually sold before they go ex-div.

As always, when you are in constructions/cyclical sector, profits will suffer when there is a downturn. That is one big decline HIL announced today and SP acted accordingly. Tommorow will be more bleeding. Wished I could short HIL today.

[winner69]

Wipeout big time eh soulman

One to keep an eye on for the recovery ....one day

[soulman]

Wipeout big time eh soulman

One to keep an eye on for the recovery ....one day

Can only get worst. New CEO in and this happen. What a coincidence.

I won't touch HIL now. Seems like downhill to the 50's.

FWD was having a downturn recently and an update proved that today. But with net cash, seems alright. One of their long term execs retired recently as well.

[mark100]

I am only in stocks at present that forecasted further growth when the FY12 results came out or have had a good forecast at their AGM. A lot of stocks at the time of the FY results said they would give guidance at the AGM, in the case of these stocks I am waiting for the AGM forecast. CDA and HIL are a great contrast between what a good and bad AGM forecast will do!