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

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

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

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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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The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition) by Benjamin Graham
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c Share Investor 2010