I thought it is a near certainty from the postings here this morning?
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All rests on the AUSSI shopper Balance?
I look at HLG quite simplistically - an excellent company with a strong & sound financial position, doing well and paying sustainably high dividends from its existing operations with Australian growth providing the kicker. In fact, I consider growth in Australia to be an embedded free option in the sp.
Fashion is a fickle industry but if you get it right, it is an extremely profitable and sustainable business. I believe HLG has it right.
In Aust Feb retail sales surprised on the upside ….. clothing up 18% on last year .... yes 18%. Feb/Mar Group sales about the same as last year so this indicates how depressed things are in NZ
And consumer confidence seems to be improving according to surveys
And the Fed Govt throwing heaps of cash around to boost activity …tax cuts and cheaper fuel.
All good for HLG
"I consider growth in Australia to be an embedded free option in the sp"
wonder if retail shares on the NZX can move together to some degree.
Good results from WHS, BRIS, HLG build investor confidence.
Curious, who is claiming that ? A significant majority of company sales are in N.Z. and have shown no growth for years so the majority of the comapny should be on a PE of 10.Quote:
"I consider growth in Australia to be an embedded free option in the sp"
The fact the whole company is on a forward PE of about 20 suggests to me that Glassons Australia is certainly not free or anything even remotely close to it. The group is making about 2/3 rds of its profit in Australia and Glassons Au side of the operation is on about a PE of 25 which is looks about right and a PE of 25 is certainly not free.
Jeez HLG goes ex div and share price shoots up close to 670
Almost becoming a market darling