HNG - Hancock & Gore

[Tysonboss1]

Does anyone here follow HGL.

I believe it's got a few things going for it.

Based on it current share price it seems to be good value, the dividend yeild is over 10% and based on earnings is sustainable on an 80% pay out, which management have confirmed it is their intention to continue that pay out ratio.

the company has been running a share buy back for months which should put a floor of $1.20 under it's share price (eventually). and should reduce the total shares on issue to below 50million.

 

[prawn_86]

Very interesting Tyson. Had a quick look now and will look into in detail later tonight.

Must say i do like these 'small chip' solid stocks that fly under the radar and pay a good consistent dividend

EDIT - Tyson, do you have a link to their buyback statement saying why/how much they will be buying back? I cant seem to find it

 

[Tysonboss1]

EDIT - Tyson, do you have a link to their buyback statement saying why/how much they will be buying back? I cant seem to find it

If you look at the daily share buy back notice it says how many shares still outstanding that they intend on purchasing, from memory I think it is still over 2M.

There is also an annoucement talking about their intentions for the buyback. But you will have to go through their website to see it because if you look at the annoucements through commsec it won't show up because there have been so many daily buyback notices it has cleared the older annoucements.

 

[prawn_86]

Cheers Tyson,

I had a look back but couldnt find it. Oh well.

I guess my biggest question is that of growth. They seem to have done well so far picking brands that suit their strategy, but do you think they will continue to do so?

 

[Tysonboss1]

HGL has posted some good trading results in the annual report. They seem to be making the most of the High Australian dollar since most of their products are imported.

The share price has been recovering very well latly back to a level that better reflects the value of the company.

A highlight is the cash position, HGL now has zero debt and $2M cash in the bank, and all businesses trading well.

The future looks bright for this little gem.

 

[drlog]

I have been looking over this stock over the weekend after I saw a report on it. I am tempted to buy. It should be valued around $1.80-2.00ish but its not quite what I am looking for. I like high ROE and at 9-10% underlying ROE, they dont cut it. Also, I can't see much growth opportunity unless they manage to acquire other businesses on the cheap. It's as if it looks good now but is too unpredictable - for all I know, they could buy some company that imports apple stickers and make a killing with it but we don't know what will happen.

It's not that often you can buy a profitable company at around book value so if you hold, you're probably on a good thing, good luck!

All of this is my opinion - take it with a mountain of salt :

 

[Alpine]

I've been shareholder of HGL since 2000, well done it's a stock that Ben Graham/Warren Buffett would buy . The company has been going since 1977, is run buy first class management, has always payed a dividend and before the GFC the dividend never was reduced. Purchase price in 2000 was $1.10 and over the years went to over $2. No real interest in the stock over the years, recently stock surges just before the ex dividend date. Quality company at a bargin price, maybe times will change and market wiil increase value of company.

 

[nicarena]

Agreed Drlog. I had it valued around $2 until I had a really good look at the annual report. Their real profit is 6.8m not the 17.3m quoted in places. The real ROE is 9.8% and my value drops to around 50cents.

 

[tinhat]

Anyone still following this company? Share price seems to have turned the corner.

 

[System]

On February 9th, 2022, HGL Limited changed its name to Hancock & Gore Ltd.
.

 

[Dona Ferentes]

On February 9th, 2022, HGL Limited changed its name to Hancock & Gore Ltd.
.

Hancock & Gore Ltd (HNG, formerly HGL Limited) is an active investment company that invests in and actively supports a portfolio of wholly or partly owned wholesale and distribution companies with expertise and capital. The portfolio companies are independently operated marketing and supply chain businesses, selling or renting premium quality products, under exclusive agency or company brands, in diversified niche markets.

Market cap $67million

and, from delisted.com !!

name changed from Hancock and Gore Limited

30/01/2002​