HLG - Hallenstein Glasson

**Balance** · 05-01-2021, 06:54 PM

The power shares are on fire - utilities offering more than bank deposit rates.

Financial advisors putting ten of millions of dollars from maturing term deposits of clients/savers into yield share portfolios and chasing stocks.

They will find stocks like HLG & PGW with their growing earnings & high yields irresistible soon enough.

$10, here we come!

**nztx** · 05-01-2021, 07:02 PM

Originally Posted by Balance

The power shares are on fire - utilities offering more than bank deposit rates.

Financial advisors putting ten of millions of dollars from maturing term deposits of clients/savers into yield share portfolios and chasing stocks.

They will find stocks like HLG & PGW with their growing earnings & high yields irresistible soon enough.

$10, here we come!

Yep -- especially on the back of Retail Investors chasing better yields than the old old bank deposit rates ..

**Waltzing** · 05-01-2021, 09:14 PM

Not an NZX 50 yet. Gens are there for the future of the new EV fleet.

**winner69** · 06-01-2021, 09:49 AM

If HLG was in the DOW (or loosely the S&P500) it would be in the Dogs of the Dow portfolio for 2021

High divie yield ...share price too low they’d say

So 2021 HLG share price to $10 plus and a decent divie ...win win

**Waltzing** · 06-01-2021, 12:12 PM

The eco boy and girls are saying consumer spend throttle back from the after burner setting.

Possible virus leak Hamilton tested negative!

Wait till the new variant lands in big numbers on the shore and they eco's are expecting possible more lock downs describing it as hubris to date.

Not in the NZ 50 yet its a coin toss.

**winner69** · 09-01-2021, 08:55 AM

I noticed in that brilliant WHS update yesterday that their H2 F20 sales (lockdown period) were actually in line with the PCP

HLG on the other hand had a big sales shortfall in H220

They have a lot of sales to catch up on F21 - hence the big %ages they have already reported

I threw this together - how full year F21 sales around $330m will pan out over the year. Some big sales growth periods to come I reckon

**winner69** · 10-01-2021, 08:26 AM

HLG share price going nowhere ...maybe mid 660’s is as high as it’s going to get (a la waltzingman)

And no signs of anybody ‘backing the truck up’ either

So a reminder of why punters should still be buying HLG. A few extracts from Beagles recent posts -

They had a cash mountain of around $50m as at balance date which I expect to be very similar at the conclusion of the current half year and equates to a whopping 83 cps. Based on likely earnings in the current period and their very robust cash position I am forecasting a fully imputed April dividend of around 24-25 cps.

And

Briscoes now on 18 times last years Covid affected earnings. A similar multiple would have HLG at $8.42. One has outstanding growth prospects in Australia the other does not. Hmmm

And

There are a range of uncertainties but I am modelling up about $24m for 1H FY21 up just on 50% on last years $16m and amounts to ~ 40 cps. Who knows what the dividend will be but they have truckloads of cash already, no debt and I am sure it will be dramatically higher than last years 15 cps.
This is based on sales for the first 26 weeks continuing to grow at the same rate as the first 18 weeks (14.5%), and the gross profit percentage increasing 1.8% back to the level prevailing in 2018 of 61.5%. These two factors alone add $16m in gross profit for the half year. Increased percentage of sales though online channels will add distribution and selling efficiencies.