Showing posts with label Hallenstein Glasson. Show all posts
Showing posts with label Hallenstein Glasson. Show all posts

Thursday, June 17, 2010

The History Of: Hallenstein Glasson Holdings Ltd



Hallenstein Glasson Holdings Ltd [HLG.NZ] (minus the Glasson part) has certainly been part of my childhood and growing up everything from school uniforms to first serious "shirts and pants" were purchased at a Hallenstein store in the main street of Hastings, Heretaunga Street.

That history seems to have rubbed off on me somewhat and 40 or so years latter I own shares in the company my parents used to buy stuff from.

HLG is part of Kiwi culture and history and it is remarkable that through the years since its establishment by Bendix Hallenstein in Dunedin in the late 1800s and to this day, HLG remains part of the Kiwi lexicon.

A piece in Stuff.co.nz out this morning goes into a bit more detail about the history of HLG and is interesting reading for those interested in New Zealand retailing and the history of business in general:

His first store opened in the Octagon in 1876, accepting cash only and advertising a single garment at a wholesale price – about 25 per cent on cost. He also opened shops in Christchurch and Timaru later that year, and in Wellington and Oamaru the year after. Through 1878 and 1879 the business opened shops in Auckland, Napier, Ashburton, Wanganui, Invercargill, Nelson, New Plymouth and Thames.

By 1900 there were 34 Hallenstein shops nationwide – only four fewer than exist today.

In 1883, the company's 350 staff moved into a new purpose-built factory in Dunedin. Soon after, Mr Hallenstein seeded an employee fund from which the interest was used to pay for medicine for staff.

When the Rev Rutherford Waddell gave his sermon on "the sin of cheapness" and called for a royal commission, "at a big public meeting", according to the history of Hallensteins, "Bendix Hallenstein supported him, declaring his sympathy with the movement and stating that he and his partners would sooner give up manufacturing than carry it on at the starvation rates being offered by contractors". Read more here.

The ability of a retailer to develop itself out of the Otago gold rush and still exist in 2010 is no mean feat and just goes to show what a business can do when it offers good product to its customers and runs the back office as frugally and cunningly as HLG did and still does.


Hallenstein Glasson @ Share Investor


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 Group

Download HLG Company Reports
Download HLG Company History



c Share Investor 2010





Thursday, May 6, 2010

Hallenstein Glasson Holdings Ltd: Download full Company Analysis

Hallenstein Glasson Holdings Ltd [HLG.NZ] financial's including a full collection of data out May 6 2010 courtesy of Aspect Huntley/ASB Securities.

This is a series I will do for the Share Investor Portfolio and other NZX listed companies.

You will find balance sheets, ratios, charts, shareholder returns, 10 year analysis, broker recommendations, substantial shareholders, commentary and company details, forecasts and all the HLG info you could need to make a decision whether to invest or not. Download the full package at Share Investor Forum - you must join to download. It is free and takes less than a minute.


Disc I own HLG shares in the
Share Investor Portfolio



Share Investor Portfolio Company Analysis Series


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Hallenstein Glasson @ Share Investor


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




c Share Investor 2010





Friday, February 5, 2010

Hallenstein Guidance not indicative of wider retail recovery


News that Hallenstein Glasson [HLG.NZ] has had a good half year to 24 Jan 2010 in a profit guidance to the stockmarket, shows how good management at that company have been to weather the economic downturn but that must be put in the context of a particularity bad half for the corresponding 2008 period and of course this is only a six month period - lets not count our board shorts until they are sold sort of thing. With current sales and profitability it is very likely that the company will beat 2009 full year profit of nearly NZ$13 million and that was the worst year since the 2003 full year result.

The most important part of the update is that margins for the company have improved, not easy to achieve during the seemingly endless summer sales of its competitors, and that stock levels have been managed to levels that seem to have avoided the big prices cuts of competitors who have stock to burn. Management have seen fit to boost the dividend by 40% to 14c, so they seem confident that the good news is set to continue.

A good definite cold Winter season will bode well for the coming 6 months of operation and it is this traditional slower sales season that will define a good or excellent outcome come full year reporting in August.

Retail over the last 2 years has been hard going in New Zealand and is not likely to recover to pre-recession spending for many years to come in my opinion.

Over the last 6 months many retailers have fallen by the wayside, Stax, Hill & Stewart have been but a few and some independent retailers have gone to the wall as well and we are likely to see more over 2010, so the Hallenstein profit update is by no means an indicator of a wider retail recovery.



Meanwhile the stockmarket has overreacted in a big way to this positive news (see chart above), marking up the stock price by 35c on close of trading last Friday and 15c at time of writing this post. This is more than a 10% gain in 2 days and not a wise purchase at these prices considering the uncertain overall retail outlook, even though the dividend makes the annual return at the current share price of close to 10% net.

Long term investors in this company would well be advised to wait for another opportunity, while shorts termers could see some upside in dividend stripping as we come closer to the dividend payout date.

Proceed with caution.


Disclosure: I own HLG shares in the Share Investor Portfolio



Hallenstein Glasson @ Share Investor

Stock of the Week: Hallenstein Glasson
Hallenstein Glasson Australian expansion needs expert execution
Why did you buy that stock? [Hallenstein Glasson]


Discuss this Stock @ Share Investor Forum - Register free

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c Share Investor 2010

Tuesday, September 29, 2009

Stock of the Week: Hallenstein Glasson



The resilient result out late last week for Hallenstein Glasson [HLG.NZ] prompted me to add this company to the Stock of the Week list. A profit down from last year nonetheless but a result that shows promise for better to come and a well managed business in very troubled times.

Like every other stock on the New Zealand sharemarket this one has taken off recently (see one year chart above) and at NZ $3.03 it is higher than it was over a year ago when the economy really hit the fan and people stopped shopping but it has been alot pricier at a high of over $ 5.75 3 years ago (see 5 year chart below)

Another attractive selling point is its consistently good dividends that have been paid over the long term and this has been the result of maintaining costs to a minimum and growing sales and therefore cash flow to pay that dividend.

It is paying a gross return of over 10% at today's share price of $3.03.

If you are interested in a good long-term investment get in on general market weakness come October.

Good Luck!


Hallenstein Glasson @ Share Investor

Hallenstein Glasson Australian expansion needs expert execution
Why did you buy that stock? [Hallenstein Glasson]


Disclosure: I own HLG shares in the Share Investor Portfolio

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c Share Investor 2009