Share Investor's Total Returns: Hallenstein Glasson Holdings Ltd

I have written about returns for stocks on a general basis in the Long Term View series of posts and the Long VS Short series but in this series, Share Investor's Total Returns, I will be giving my actual returns for stocks in the Share Investor Portfolio for as long as I have held them.

The return calculation will include dividends earned along with qualifying tax credits and of course any capital increase in the share price. It will be a total return over the length of holding of the share expressed in overall dollar figures with an individual value per share of what the stock currently is held at.

The eleventh stock in this particular series is a long term star of the portfolio and one that I have held for 3 years, Hallenstein Glasson Holdings Ltd [HLG.NZX]

The current holding of 1000 was kicked off by an initial purchase in July 2008.

The stock cost a total of $2530.00. It has returned net dividends of $743.72 and total tax credits of $366.30, with $30.00 in brokerage.

I am eligible for the full tax credit so if the gross dividend (net dividend plus tax credits)is added and brokerage taken off my full return from dividends and tax credits over the total holding period of 3 years is $1080.32

The current capital value of the company in the Share Investor Portfolio as at 3 June 2011 is $3720. The capital gain therefore is $1160.00. This gives a total return on this share of $2240.32 when dividends and tax credits are included. This is a 89% return over 3 years or a 29.66% gain per annum.

I hold HLG therefore at a total cost of $289.68 or 28c per share.


Disc: I own HLG shares in the Share Investor Portfolio


Share Investor's Total Returns Series

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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
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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

Share Price Alert: Hallenstein Glasson Holdings Ltd 3

Hallenstein Glasson Holdings Ltd [HLG.NZX] makes a third appearance in this series of posts for 2011.

The first inclusion discussed the share price falling due to a profit downgrade in January and included the rider that this fall in share price would go further and to buy on "inevitable weakness." The second post was included for much the same reason but at a lower share price than the first.

This came after a peak in share price back in September 2010 that led me to ask if I should sell.

Since the second post in March the share price rose from $3.63 to finish at $4.17 just last week.
Today the share price has taken a 20c hit to be trading intra-day at $3.95 as this piece comes to press on news of a weak trading update to the market.

Most retail stocks have suffered over the last few months, notably PPL - with the exception of BGR & MHI & WHS - and I expect HLG to fall further on negative sentiment related to the economy as a whole.

I will be taking more interest in this stock myself sub 3 bucks.

It is a great company with its crucial value indicators looking more and more attractive as the share price weakens:

Price Earnings Ratio (P/E) 13.62

Earnings per Share (EPS) 30.5c

Net Tangible Assets per share $.978

Total Net Div Paid (last full financial year) 31c

Gross Div Yield 10.67%


Once again buy on further weakness.


Disc I own HLG, BGR, MHI, WHS, PPL shares in the Share Investor Portfolio



Share Price Alert Series

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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






Think Bigger: How to Raise Your Expectations and Achieve Everything by Michael Hill





c Share Investor 2011

Share Price Alert: Hallenstein Glasson Holdings Ltd 2

Hallenstein Glasson Holdings Ltd [HLG.NZX] makes a second appearance in this series of posts.

The first inclusion discussed the share price falling due to a profit downgrade in January and included the rider that this fall in share price would go further and to buy on "inevitable weakness."

This came after a peak in share price back in September 2010 that led me to ask if I should sell.

Since September then the stock price has lost almost 1 dollar and since the end of January has lost 50c to close at $3.63 yesterday.

Most retail stocks have suffered over the last month - with the exception of BGR & MHI - and I expect HLG to fall further on negative sentiment related to the economy as a whole and impacts from the Christchurch Earthquake last week.

I will be taking more interest in this stock myself sub 3 bucks.

It is a great company with its crucial value indicators looking more and more attractive as the share price weakens:

Price Earnings Ratio (P/E) 11.06

Earnings per Share (EPS) 32.8c

Net Tangible Assets per share $1.031

Total Net Div Paid (last full financial year) 31c

Gross Div Yield 12.33%


Once again buy on further weakness.


Disc I own HLG, BGR, MHI shares in the Share Investor Portfolio


Share Price Alert

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Freightways Ltd
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Hallenstein Glasson @ Share Investor

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




Think Bigger: How to Raise Your Expectations and Achieve Everything by Michael Hill 




c Share Investor 2011

Share Price Alert: Hallenstein Glasson Holdings Ltd

Hallenstein Glasson Holdings Ltd [HLG.NZX] had a profit downgrade yesterday and they indicated that net profit after tax for the 6 months ended 1 February 2011 is projected to be in the range of $7.0 –$ 7.4 million, a decrease of 13% - 18% on the prior year ($8.549 million). Sales were marginally down indicating HLG was discounting to keep market share.

This comes on top of a pretty good FY 2010 result.

I was only questioning myself in September last year about whether I should sell or hold given that the shares were rocketing up and they peaked in November last year at $4.60.

The shares have been losing ground over the last few months before this announcement and they were down by 24c to $3.86 or almost 6% yesterday on low volumes traded.

It is a well managed company with excellent dividends and this bad news could be a good opportunity to pick some up as the stock price drifts south.

Buy on inevitable further weakness in the retail sector.


Disclosure: I own HLG shares in the Share Investor Portfolio


Share Price Alert

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Hallenstein Glasson @ Share Investor

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




Think Bigger: How to Raise Your Expectations and Achieve Everything by Michael Hill 




c Share Investor 2011

Stock of the Day: The Warehouse Group Ltd

The Warehouse Group Ltd [WHS.NZX] share price has been hammered over the last 6 weeks. From a high of nearly $4.05 back in late November closing down today on low volume at $3.52.

The stock has been a victim of constant media attention on Christmas shopping figures and official retail sales releases over the last few weeks. Pumpkin Patch Group Ltd [PPL.NZX], Hallenstein Glasson Holdings Ltd [HLG.NZX] and other retailers have been similarly affected.

To be sure the WHS Christmas shopping fortunes for the first half of the 2011 financial year are very important to the bottomline but there is only anecdotal news at the moment that they are being hit hard.

For the share price to be hit by around 12% in six weeks seems a little overdone and I will be watching for further weakness for an opportunity to buy more shares for as little as possible.


Disclosure: I own WHS shares in the Share Investor Portfolio

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Hallenstein Glassons Ltd: Should I stay or should I go?

The Hallenstein Glasson Holding Ltd [HLG.NZX] 2010 full year profit out today has managed to push shares in the company up by 12c to $4.24 at time of writing and it looks like the attached dividend of 17c will see a very good rise in stock price as short term dividend strippers come in for a quick buck. The rise in the HLG stock price has outstripped the rise in the NZX50 index (see chart above)

The share price at current levels (see 21 year chart below) has reached 2 years highs not seen since the pre-2008 stockmarket crash but is still well off its all-time high of around $5.75 (way too high) reached back in late 2006. It reached a low of not much more than 2 bucks in 2009 -way too low.

My very small investment in HLG began in July 2008 when I bought 1000 shares at $2.53 and since then if you include the increase in share price, dividends and tax credits I have had almost a 100% return in just over 2 years.

A pretty good return in the midst of the worst recession in my lifetime and time to have a look to see if this stock is worth selling.

My investment model rests on long-term returns but if somebody is willing to offer me good money for my shares after having had a n excellent return on my investment then who am I to argue?

I err on the side of holding, because the company is well managed and pays a very good dividend but anything north of 5 bucks will get me online to the broker for a sale.

I will let you know what happens.



Hallenstein Glasson @ Share Investor

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





Think Bigger: How to Raise Your Expectations and Achieve Everything by Michael Hill 





c Share Investor 2010

Mixed Retail Outlook

Recent announcements by retailers Briscoe Group Ltd [BGR.NZX] Kathmandu Holding Ltd [KMD.NZX] and Hallenstein Glasson Holdings Ltd [HLG.NZX] has got me thinking about the fortunes or otherwise of the other retailers in the Share Investor Portfolio.

Briscoes had a mild upswing in sales for the last half year to 1 August 2010 but in the last quarter of that half sales were down on the same period in 2009. This clearly indicates that the economy is not well at all. Kathmandu over-promised in their IPO Prospectus and last week delivered under par sales revenue. They cited a poor overall retail environment for the gap between their promises and last weeks reality.

Hallenstein Glasson had a different story to tell however with a sizable lift in projected profit for 2010 when compared to the same period in 2009 and a reasonable lift in sales considering the current poor retail environment. This is of course off a reasonably poor 2009 profit but the company is showing promise in a time of closed consumer wallets by concentrating on all important margins, avoiding frequent sales and keeping down costs. All the things the aforementioned seem to be ignoring - with the exception of BGR on costs.

The Warehouse Group Ltd [WHS.NZX] I suspect is going to have disappointing results coming up in September and Postie Plus Group [PPG.NZX] is likely to similarly disappoint the market - nothing new there then.

With the exception of expenses incurred from thus far failed attempts by Michael Hill International [MHI.NZX] and Pumpkin Patch Ltd [PPL.NZX] to expand in North America I think those two companies will see some improvement.

Retail successes over the last year seem to be concentrated on the specialist retailers who have a loyal following of their strong brands rather than the larger broad based "department store" type operators. They seem to have been able to cuts costs in the lean times in a more expeditious manner than their bigger competitors and keeping costs down, while attracting higher margin custom in this recession is key to staying in business.

You simply cant make money by selling stuff too cheaply just to get rid off it.


Disc I own BGR, HLG, MHI, PPL, PPG & WHS shares in the Share Investor Portfolio


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Hallenstein Glasson @ Share Investor

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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Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
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Warehouse bidders ready to lay money down
The Warehouse set to cut lose "extra" impediment
The Warehouse sale could hinge on "Extra" decision
The case for The Warehouse without a buyer
Foodstuffs take their foot off the gas
Woolworths seek leave to appeal to Supreme Court
Warehouse appeal decision imminent
Warehouse decision a loser for all
Warehouse Court of appeal decision in Commerce Commission's favour
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The Warehouse takeover saga continues
Why did you buy that stock? [The Warehouse]
History of Warehouse takeover players suggest a long winding road
Court of Appeal delays Warehouse bid
The Warehouse set for turbulent 2008
The Warehouse Court of Appeal case lay in "Extras" hands
WHS Court of Appeal case could be dismissed next week
Commerce Commission impacts on the Warehouse bottom line
The Warehouse in play
Outcomes of Commerce Commission decision
The fight for control begins soon

Discuss WHS @ Share Investor Forum - Register free
Download WHS company reports





c Share Investor 2010

Long Term View: Hallenstein Glasson Holdings Ltd

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

Hallenstein Glasson Holdings Ltd[HLG.NZ] has been a spectacular investment for those who have been shareholders since its listing in October 1947 and even better for its founder Bendix Hallenstein and his generations of family who established the company in the late 1880s . We will start at an adjusted $NZ1.00 per share from available 1989 data to make our comparison. (Figures for 1947-1989 are not easily obtainable so annual and overall returns are likely to be higher)

With $3.41c in net dividends (excluding the NZX listed period 1947-1995. No data can be easily found for dividends) and 30% more in tax credits (see chart above) gives HLG a slightly more than 813% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends and tax credits in its calculation) over the nearly 21 year listing of HLG (the period between 1947 and 1995 is excluded because no share price or dividend details are available so the return will be higher than stated here for this period), an approximate annual net return of nearly 39%.

This is approximately a 275% better return when compared to the average of all NZX indexes.




Disc I own HLG shares in the Share Investor Portfolio


Long Term View Series

Auckland International Airport
Air New Zealand
AMP Ltd
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Freightways Ltd
Goodman Fielder Ltd
Hellaby Holdings Ltd
Mainfreight Ltd
Metlifecare Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
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Restaurant Brands Ltd
Ryman Healthcare Ltd
Sanford Ltd
Sky City Entertainment Group Ltd
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Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd


Hallenstein Glasson @ Share Investor

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 2010