HLG - Hallenstein Glassons Holdings

[KW]

The large fund manager they had on there said he looked for companies that were growing dividends nicely and offered at least a 2% dividend yield.  I had a good chuckle about that 2% number lol  He cited Costco as a good example of a great company that can grow dividends very nicely in the years ahead.  On a PE of just under 60 and offering a yield of about 2% that should grow well in the years ahead.    Made for a bloody good comparison to HLG metrics lol

Americans prefer companies to not pay dividends and instead do share buybacks.  Thats because the tax payable on capital gains is far lower than the tax paid on dividends.  

[Dolcile]

I'd probably prefer that HLG did the same - given most of the profit will come from AU and we can't benefit from the franking credits.

[lorraina]

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[winner (n)]

Dividend day today....cool stuff

Heaps more next year

[Basil]

Dividend day today....cool stuff

Heaps more next year

I liked Warren Bell's closing meeting remarks about buying gift vouchers as Christmas gifts.  Done that a few times already and always seems to be warmly appreciated by the recipients.   Warren thinks we should spend some of our dividend in HLG stores.    I reckon reinvesting it in more HLG shares is a far better idea.

[Basil]

Dividend day today....cool stuff
Heaps more next year

Heaps more next April and I now have heaps more shares on board too.  Increased by 40% in the last week since the annual meeting.

Now equalized with my #1 invested position on the NZX in Turners because I can't decide which one I like better lol.  Need to mull that over a fair bit more over the holidays.  Both have so many attributes I like.  Suspect this one has a much longer runway of growth in Australia and James Glasson is doing an absolutely brilliant job there but on the other hand Todd Hunter and Aaron are such incredibly astute operators and then there's the once in a lifetime brilliance of the Tina marketing campaign.  Such a tough choice which is better, so I have a classic "each way" investment strategy going on now.  It's going to be an interesting horse race in the years ahead.    Expecting a true "champion's performance" from both....could be a photo finish which goes up the most over the next 5 years.

[Basil]

"$8 by Christmas". Winner mate, you're a bloody legend !

[winner (n)]

"$8 by Christmas". Winner mate, you're a bloody legend !

$10 by Easter I reckon

[Basil]

New all time high on heavy volume.  Looks well set up for a sustained run higher this summer.  Forbar have eps forecast at 72 cps for FY25 so still only a forward PE of 11.1.  Nobody has missed the boat at this point in my opinion.   11.1 is still stupidly cheap for the very strong growth in Glasson's Au.

Briscoes on a forward PE of 16 with declining eps last two years and set to decline again this year.  No real prospect of ever growing again either.  You'd need your head looked at owning them over HLG given the difference in prospects for growth and the significant difference in metrics.

[Dolcile]

This has been a nice little earner for me so far.  Got in just recently at $7.4ps - so later than most - but picked up the dividend and sitting at a nice unrealised gain. 

[Basil]

Good stuff mate, good to have you on board.  Very early days.  Sit back and enjoy the ride.  The expansion in Glassons Au is going to be HUGE over the next 5 years.  https://www.nzherald.co.nz/business/hallenstein-glasson-best-dressed-as-nzx-dips-on-light-volume/3VKVA7KYUFBTDAWHM5HAPU2F24/

[Dolcile]

Wow, $8.3 close

[Waltzing]

interesting that NZ retail only stocks except TRA have stalled...

AUSSI not so...

Wonder if the south pacific needs an EU style zone with the Kanga the currency...

how long before NZ realises its going no where...

Brisc stalled have some holders dumped and moved over already?

Very interesting to read AI C4 summary's of the HLG versus TRA...

[Basil]

HLG v TRA
Thanks for doing that mate, I posted that in the TRA thread.  Hard to decide which I like the most, so I have a 16% portfolio allocation to both.  Both exceptionally well managed companies still trading on truly compelling metrics despite recent strength in their share prices.

Glasson's Au have the longer readily apparent runway for growth in Australia, (can expand retail footprint by a CAGR of 10% for the next 16 years and its self-funding as each stores fit-out pays for itself in about a year but the way Todd and Aaron are driving TRA ahead so strongly, once they have achieved market saturation here at some future long distant date I wouldn't completely rule out them possibly dipping their toes into the water in Australia and having a go over there so their runway of growth might be more than what's readily apparent.

Which do i like more...I can't decide so have backed up the truck properly on both of them lol

One last thing. HLG has just gone ex divvy whereas TRA trades cum a 7 cps fully imputed dividend payable in late January.

[Basil]

Jenny Ruth hands out awards.  Seems she also thinks HLG deserves the "golden bone" award lol
This one is free to access.  https://justthebusinessjennyruth.substack.com/p/accolades-and-brickbats-for-2024