Wednesday, August 10, 2011

Global Market Sell-Off Stocks: Hallenstein Glasson Holdings Ltd

http://chart.bigcharts.com/custom/fairfax-com-nz/chart.asp?rnd=0.28118657500309596&style=2242&symb=HLG&size=1&type=64&time=2yr&freq=1dy&comp=&compidx=&ma=&maval=&lf=268435456&lf2=&lf3=&uf=16384&arrowdates=&arrowlegend=&country=NZ&sid=162815

Quite frankly, and as I pointed out on Friday, the whole NZX is on sale and while people are losing money people like me are contemplating buying rather than selling. On fundamentals alone there are many NZX stocks that are looking way more attractive than they had been just 3 trading days ago.

Lets look at some specific stocks though and in the third of a new series to coincide with the current stockmarket sell-off, we will look at one of the brightest retail stocks of the Share Investor Portfolio -apart from Briscoe Group Ltd [BGR.NZX] - Hallenstein Glasson Holdings Ltd [HLG.NZX]

The company has not indicated a forecast for the 2012 full year, instead focusing on possible lower margins for the coming reporting period in a May trading update , instead indicating 2011-12 will be a "challenging year". The 2011 half year result was down 16% on the 2010 HY and retail is not likely to improve significantly overall anytime soon. HLG has fared better than most retailers over the last 3 years of the economic slowdown.

During the big sell-off over the last 3 trading days the fundamentals for this stock are of course looking much better.

Lets have a look:

P/E 10.540
EPS $0.305
NTA $0.978
Gross Div Yield 13.796%

Over the last week the share price has dropped from $3.55c to finish trading yesterday at $3.21, which has exacerbated the drop from late May from around $4.20c a share. Drops of 10% & 24% respectively. This is back down to levels not seen since early of 2010 and well off the November 2010 high of $4.60.

Check out the nearly 14% gross yield!

Given that the big global market sell-off probably has more legs in it -even though there has been a dead cat bounce this morning on the DOW - investors would be wise to be a little patient before they jump in. HLG has been all over the place for a number of reasons over the last few years. Global market jitters, soft retail conditions and out of season weather have all had impacts on the company and its share price. The company is well managed though and they have traded through the depression of the 1930s and every other recession since and live to tell the tale.

Keep a close watch for the desperate sellers, the unpredictability of this market means some good opportunities for the patient.

If you were considering buying this stock before last weeks implosion, this week the GGMSO means you will be getting it on sale*.

*If you don't like some risk, stay at home and make yourself some milo and go to bed at 6.00pm.


Disc
I own HLG in the
Share Investor Portfolio



Global Market Sell-Off Stocks Series

Fisher & Paykel Healthcare Ltd
Sky City Entertainment Group Ltd


Share Price Alert Series

Hallenstein Glasson Holdings Ltd 3
Telecom New Zealand Ltd 4
Telecom New Zealand Ltd 3
Port of Tauranga Ltd
Freightways Ltd 3
Goodman Fielder Ltd 2
Freightways Ltd 2
Telecom New Zealand Ltd 2
Ryman Healthcare Ltd
Charlies Group Ltd
Fletcher Building Ltd 2
Contact Energy Ltd
Steel & Tube Ltd
Telecom New Zealand Ltd
New Zealand Stock Exchange Ltd
Mainfreight Ltd 2
The Warehouse Group Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd 2
Fletcher Building Ltd
Restaurant Brands Ltd
Mainfreight Ltd
Tourism Holdings
Goodman Fielder Ltd
Pumpkin Patch Ltd
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Freightways Ltd
Xero Ltd


Hallenstein Glasson @ Share Investor

Share Price Alert: Hallenstein Glasson Holdings Ltd 3
Share Price Alert: Hallenstein Glasson Holdings Ltd 2
Share Price Alert: Hallenstein Glasson Holdings Ltd
Hallenstein Glassons Ltd: Should I stay or should I Go?
Mixed Retail Outlook
Long Term View: Hallenstein Glasson Holdings Ltd
The History Of: Hallenstein Glasson Holdings Ltd
Hallenstein Guidance not indicative of wider retail recovery
Stock of the Week: Hallenstein Glasson
Hallenstein Glasson Australian expansion needs expert execution
Why did you buy that stock? [Hallenstein Glasson]

Discuss HLG @ Share Investor Forum

Download HLG Company Reports
Download HLG Company History


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c Share Investor 2011