Originally Posted by
Mudfish
I thought this was a brilliant result. I actually don't understand why the share price didn't go straight to $8+. Here's why.
EPS
2017 - 28.6c
2018 - 45.8
2019 - 48.65
2020 - 46.5
2021 - 32.7 (annualized - x2 = 65.4cps)
At $8 /65.4 = PE of 12.3. That's a stunning PE. Plus an awesome divi to come that's already been taxed. It could be large too.
I see there was a 4.5m wage/rent subsidy. So, if this was removed (which is like saying the shops would have made nothing if they were open - unlikely) that gives EPS of 50c. This gives a PE of 16, at $8 a share. Remember Briscoes runs on a PE of 18.
HLG have done very well in a very challenging environment. I can't see why this wouldn't continue. Looking at the fairly average turn over today, I'm picking people need time to understand this result and the share price will climb over the next week or two. I, just can't believe it dropped today on such a good result. Feel free to point out all my misunderstandings here.