Global Market Sell-Off Stocks: Hallenstein Glasson Holdings Ltd

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


Recommended Fishpond Reading



Buy The Intelligent Investor & more @ Fishpond.co.nz




c Share Investor 2011

Share Investor's Total Returns: Briscoe Group 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 tenth stock in this particular series is a slow burner in the portfolio and one that I have held for 3 years, Briscoe Group Ltd [BGR.NZX]

The current holding of 3000 was kicked off by an initial purchase in June 2008.

The stock cost a total of $2970.00. It has returned net dividends of $615.00 and total tax credits of $233.92, 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 $818.92

The current capital value of the company in the Share Investor Portfolio as at 27 May 2011 is $4440.00 The capital gain therefore is $1500.00. This gives a total return on this share of $2318.92 when dividends and tax credits are included. This is a 79.85% return over 3 years or a 26.61% gain per annum.

I hold BGR therefore at a total cost of $621.08 or 20c per share.


Disc: I own BGR shares in the Share Investor Portfolio


Share Investor's Total Returns Series

Ryman Healthcare Ltd
Fisher & Paykel Heathcare Ltd
Auckland International Airport Ltd
Pumpkin Patch Ltd
Michael Hill International Ltd
Freightways Ltd
Mainfreight Ltd
Sky City Entertainment Group Ltd
The Warehouse Group Ltd

Briscoe Group @ Share Investor

Chart of the Week: Briscoe Group Ltd
Share Investor Q & A: Briscoe Group CEO Rod Duke
Share Investor Q & A: Put Questions to Briscoe Group CEO Rod Duke
Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Whats on Rod Duke's shopping list?
Why did you buy that stock? [Briscoe Group]
Rod Duke's Pumpkin Patch gets bigger

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free

New From Fishpond.co.nz

Allan Hubbard: Man Out of Time - By Virginia Green



Buy NZ's best business books & other consumer products




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

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
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

Chart of the Week: Briscoe Group Ltd

Briscoe Group Ltd [BGR.NZX] has had a pretty good year in terms of sales figures and 2010 profit results.

In the middle of one of the worst recessions in 80 years the company has managed to grow sales quite substantially and profit is well up on a poor 2009.

This stands in contrast to other retailers that BGR competes with.

It is a well run company, with no debt and an excellent management team, especially the CEO and majority shareholder, Rod Duke.

This has of course had a major impact on the BGR share price.

In 3 months the stock has added 25% to close at $1.42 yesterday - see 3 month chart above.

By comparison the NZX 50 rose by 10% (see 3 month comparison chart below), so the 15% gulf is quite a substantial movement away from the market as a whole.

This means the company is going to have to deliver on the expectation that the market has for the company and bring home a very good Christmas result.

If you think they cant it looks like the chart is saying to short termers that they should be calling their brokers, while long term holders like me could see a good opportunity to grab more should father Christmas not bring home the bacon or in BGR's case the moola.




Disc I own BGR shares in the Share Investor Portfolio


Chart of the Week Series

Zealand Stock Exchange Ltd
The Warehouse Group Ltd
New Zealand Refining Ltd
Mainfreight Ltd
NZ Refining Ltd
Restaurant Brands Ltd


Briscoe Group @ Share Investor

Share Investor Q & A: Briscoe Group CEO Rod Duke
Share Investor Q & A: Put Questions to Briscoe Group CEO Rod Duke
Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Whats on Rod Duke's shopping list?
Why did you buy that stock? [Briscoe Group]
Rod Duke's Pumpkin Patch gets bigger

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free

New From Fishpond.co.nz

Allan Hubbard: Man Out of Time - By Virginia Green



Buy NZ's best business books & other consumer products




c Share Investor 2010

Rod Duke admits 2008 - 2010 Recession the worst

In a Share Investor Q & A out tomorrow morning on Rod Duke, CEO of Briscoe Group Ltd [BGR.NZX], Rod gives some very interesting answers to my questions to him. We cover aspects of his business life, retailing in general and the Briscoe Group specifically and some other topics thus far not broached by other interviewers.

One answer that really interested me was the answer to the following question:

SI - Is this the worst recession you have experienced in terms of retail and/or personally?

RD - Yes, Yes

Dumb that I didn't ask him if he thought it was over but revealing in the sense that here is a man at the cutting edge of retailing in New Zealand, with years of experience in retail and in business and he says that this is the worst ever recession he has experienced. This would include the decade of low growth in the 1990s, the aftermath of the 1987 stockmarket crash and the oil lead recessions of the early and late 1970s.

Pretty big call to say that the period 2008 - 2010 (I think we will experience a longer term of recession) is the worst of economic times since the depression (I know others have said this but Rod has been very direct and succinct while others on the economic coal-face like him have often waivered in their opinions) but that how Rod has called it and he is old enough to know.

Rod even quotes Warren Buffett at one stage!

My favourite Share Investor Q & A thus far and he completed it in a couple of days. Shame his mate Ian has been dragging the chain.

Sorry Ian just kidding!


Disc I own BGR shares in the Share Investor Portfolio


Share Investor Q & As

Briscoe Group CEO Rod Duke
Ryman CFO Gordon Macleod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison


Briscoe Group @ Share Investor

Share Investor Q & A: Put Questions to Briscoe Group CEO Rod Duke
Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Whats on Rod Duke's shopping list?
Why did you buy that stock? [Briscoe Group]
Rod Duke's Pumpkin Patch gets bigger

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free


From Fishpond.co.nz

Recommended Fishpond Reading



Buy The Intelligent Investor & more @ Fishpond.co.nz




c Share Investor 2010

Share Investor Q & A: Put Questions to Briscoe Group CEO Rod Duke

I have just submitted a lengthy Share Investor Q & A to The Warehouse Group Ltd [WHS.NZX] CEO Ian Morrice and it should be published in a few weeks. (please note the WHS Q & A will be embargoed until the 2010 full year profit announcement on around 10 -15 Sept)

The thing that was missing unfortunately were some questions from my readers. Only two were submitted. It cant be for lack of readers because this blog is heading for record numbers for August.

So come on you lazy lot, you have a chance to redeem yourselves by submitting your questions to me for an upcoming Share Investor Q & A with the CEO of Briscoe Group Ltd [BGR.NZX] Rod Duke.

Briscoe Group hasn't been immune from the current recession and its impact on the overall retail sector but it has fared better than most. With no debt and healthy cash reserves in the bank, the company, while not setting the stockmarket on fire since its listing earlier this decade, has been around for decades and Duke has managed it well since he founded it.

Intensely private, he tends to let his company results talk for him, I approached the company and asked he would be interested in participating in a Q & A.

He kindly said yes.

Find more out about the man, his company, his opinions on business and retailing and where specifically Briscoe Group might be heading.

To submit a question either email me here or leave your question at the bottom of this post here.


Disc I own BGR shares in the Share Investor Portfolio



Share Investor Q & As

Ryman CFO Gordon Macleod
Ecoya's Geoff Ross
Xero's Rod Drury
Mainfreight MD Don Braid
Burger Fuel Director Josef Roberts
Sky City CEO, Nigel Morrison


Briscoe Group @ Share Investor

Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Why did you buy that stock? [Briscoe Group]
Rod Duke's Pumpkin Patch gets bigger

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free



Related Amazon Reading

Xero for Dummies (For Dummies (Business & Personal Finance)) by Smith, Heather (2013) Paperback Buy used from: $18.48

Adding a Xero to Your Practice: Practical Advice for Accountants Looking to Be Successful in the Cloud by Doug Sleeter Buy new: $14.95 / Used from: $13.73 Usually ships in 24 hours

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


Briscoe Group @ Share Investor

Long Term View: Briscoe Group Ltd
Briscoe's Cash worth looking at
Why did you buy that stock? [Briscoe Group]

Download BGR Company Reports

Discuss BGR @ Share Investor Forum - Register free

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


Kathmandu @ Share Investor

Chart of the Day: Kathmandu Holdings Ltd
Kathmandu Holdings: Market Update Misleads
Kathmandu's 2011 Results Under Pressure from Jan Cameron
Kathmandu IPO: Prospectus Analysis
Kathmandu IPO: Jan Cameron lands a blow to IPO
Kathmandu IPO: What is it worth?
Kathmandu IPO: Retail Interest HighKathmandu IPO: A tough mountain to climb
Kathmandu No.1 but IPO should get the Bullet
Download the detailed Kathmandu Value Cruncher Report - Requires free registration at Share Investor Forum to download
Download Kathmandu IPO Prospectus
KMD Investor Presentation to Macquarie

Discuss Kathmandu @ Share Investor Forum
Download KMD Company Reports


Michael Hill International @ Share Investor

Long Term View: Michael Hill International Ltd
Michael Hill International: 2010 half year profit commentary
Michael Hill Makeover kicks off
Michael Hill International: 2009 full year profit commentary
Toughen Up: What I have learned from the hard times
Stock of the Week: Michael Hill International
Michael Hill TV3 60 Minutes Interview
Long VS Short: Michael Hill International
Marketwatch: Michael Hill International
Michael Hill's profit shines
Michael Hill takes on the windy city
Why did you buy that stock? [Michael Hill International]
MHI has defined growth strategy
MHI profit sparkles

Discuss MHI @ Share Investor Forum
Download MHI Company Reports

Postie Plus Group @ Share Investor

Long Term View: Postie Plus Group Ltd
I'm Buying: Redux
What is Jan Cameron up to?
Whats on Rod Duke's shopping list?

Discuss PPG @ Share Investor Forum
Download PPG Company Reports

Pumpkin Patch @ Share Investor

Pumpkin Patch Ltd move downmarket
Long Term View: Pumpkin Patch Ltd
Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
I'm buying
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills

Discuss PPL @ Share Investor Forum
Download PPL Company Reports


The Warehouse Group @ Share Investor

Share Investor Q & A: Questions to The Warehouse' CEO Ian Morrice
Long Term View: The Warehouse Group Ltd
Share Investor Short: Warehouse Group yield worth a look
The Warehouse Group: 2010 Interim Profit Review
The Warehouse: Big Brands, Big Opportunities
Warehouse strike opportunity to buy
Long Term Play: The Warehouse Group
Share Investor Short: Warehouse Group yield worth a second look
Woolworths supermarket consolidation an indicator of a move on the Warehouse?
Stock of the Week: The Warehouse Group
Warehouse 2009 interim profit a key economic indicator
When will The Warehouse bidders make their move?
Long vs Short: The Warehouse Group
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
MARKETWATCH: The Warehouse
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