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This has been a quiet board - Hemmers sold and property of £5m remaining, being let to the new owners for £440 pa. Market cap is £2.7m. Selling the property and distributing the proceeds would seem to be a good option for shareholders.
Yes
Unfortunately a lot of LSE's RNS's are not showing for any stock, hence no interest.
This could have a lot more interest and could be higher is LSE system wasn't so rubbish.
Wow - over 5 years between the last post and the first response - and another year for me to comment.
Excellent trading news today, coupled to huge NAV.
Spread is 30%. Nah...
http://www.stockopedia.com/content/best-of-the-benjamin-graham-bargain-screen-91293/
Hi mate, Yes I see what you’re getting at. In light of that the share buy back plan does appear that it probably is a missed opportunity! Happy to provide you other investments that I’m looking at / hold. Presuming you’re looking for companies with similar characteristics to this, SafeStyle (SFE) is a superb choice IMHO. It’s cheap, it’s growing, it pays a decent yield, and has a superbly lightweight & cash-generative business model. It combined value, quality, and income – basically everything you’d want in a company really but, of course, DYOR. I have other investments of course – my largest holding is a huge value play, and the rest are a mix of value and growth, and then I have one blue-sky speculative stock in there too. But I’m not convinced you’d be interested in them so I’ll leave you with just my SFE tip (for now?) As for other investments (which I don’t hold) EZY is tickling my fancy at the moment. It’s moderately cheap (worth about 1650-1700p I reckon), its yield is set to increase to about 3.1% also, and its benefitting from low oil prices at the moment. It’s the one company further up the food chain that I’m really liking the look of. How about yourself? What other investments do you have / are looking at? PS - apologies for taking so long to reply to you!
Hi Libero As I understand it Leeds is a holding company and Hemmers is a 100% subsidiary of leeds. I completely agree Hemmers is a great company and the website i am referring to is that of leeds not Hemmers. (http://www.leedsgroup.plc.uk). In the annual reports under dividends it says 'It remains the intention of the Board to seek further opportunities to maximise the long-term value of the Group to the benefit of all shareholders by identifying appropriate investments in businesses where they have relevant expertise and which may not necessarily be operating in the textile industry. In the light of such policy, the Directors do not propose a dividend' I guess my argument is the share buyback is using company money that could be used for acquiring additional investments but instead is being used for a share buyback that will just raise the percentage ownership of the few individuals that hold the majority of the stock. Although you may be right and I am getting the wrong end of the stick. I would be interested to hear what other investments you are looking at currently, we obviously look for the same sort of things.
Well I see share buybacks more favourably. To me that's a sign of confidence in the company and increases the value per share of course. Although I have to admit it's probably making an illiquid stock even more illiquid (can't help but notice the spread has widened once again) re: Strategy, I think you've got the wrong end of the stick. It's a textile business basically, operating through Hemmers Europe and ChinohTex (in Shanghai) The website looks great to me. Again not sure what you're referring to. http://www.textilhemmers.de/content.php?item=3& Also it looks like they've properly considered their risks and made sure to transfer it (through insurance) or mitigate it (so they're not too dependent on one customer) etc. "Principal risks and uncertainties. Fire risk is mitigated by insurance, including consequential loss insurance to cover the loss of business opportunity while replacement stocks are obtained. There is an adequate disaster recovery programme in place with regard to essential computer systems. The commercial risks of operating in the highly competitive European fabric market are limited by the fact that Hemmers has a wide range of suppliers, and no customer accounts for more than 5% of revenues. The Directors therefore consider the principal operating risks of operating in this market to be the financial risks identified in note 3 to the financial statements." I really like this company. I just wish it was more liquid.
Im not 100% clear what the stratedy is here. The company doesn't pay a divi as it says they are searching for 'suitable investment opportunities'. As far as I can tell this has consisted of buying a piece of land that they weren't allowed to build on and a sizeable stake in Dawson that went tits. The share buyback is making the stock even more illiquid and draining the company of cash it could be using for this investment strategy. Im not a fan of share buybacks especially if they don't pay a divi. Im not really sure why the company is public. With the large amount of shares in just a few hands it probably wouldn't take much effort to take it private? Also, and this may sound a bit petty, but the website looks terrible and dated. All these things are putting me off investing. Do you think I have misinterpreted anything?
Gav, Check out my 21st August post. This looks really cheap. I think it just suffers from illiquidity so am umming & erring over what to do (because there's other shares I really like too) Let me know what you decide. Dan
Whats your take on this stock? I have only briefly looked at this and had a quick thumb through the annuals. It looks attractive for what I look for in stocks but something just doesn't feel right and I can't put my finger on exactly what it is .....
is only 6% now...
If the spread wash't ridiculous i would be interested
Although this share has great potential but there's no liquidity to have some serious fun. Thanks, but no thanks.
Facts Revenue rose 10% to £34.2m Gross profit rose 14.5% to £7.8m Profit before tax rose 132% to 1.61m (including 2012/3 exceptional costs) Profit before tax rose 11.8% to 1.61m (after 2012/3 exceptional costs)* EPS rose from 1.0p to 3.9p (including 2012/3 exceptional costs) – 290% increase TNW rose 4% to 13.12m NAV rose from 3.25% to 50.7p Net bank debt of £390k has been eliminated The resulting valuation ratios are as follows: The PE ratio drops from 34 down to just 8.7 The EV/EBIT ratio drops from 14.75 down to just 6.4 This is trading at a 40% discount to its TNW This is trading 33% below its NAV Conclusion Revenue, Gross Profit, PBT, EPS, TNW and NAV all rose. Even when you take into account the exceptional costs of £745k that impacted the 2012/3 figures, literally everything seems to have moved in the right direction – which is incredibly impressive. Due to the fact that many of the ratios were so high before (e.g. PE of 34) I reckon most bargain hunters haven’t yet realised what a cheap stock this is. It is currently under the radar but, with such a low PE ratio etc, it is only a matter of time before it starts to re-rate as the bargain hunters like myself realise the opportunity here. In other words, if I had more money in the bank account at the moment (July / August have been very expensive) I’d be buying into this right now. Strong Buy
no trades yet so marked up.
seems the answer is yes. Up 14% on open.
NAV was 45p last year and didnt get there... see if 30p is broken.
"The Directors intend to increase the value of the Group by making investments in businesses where they have relevant expertise but may not necessarily be operating in the textile industry and, in order to maximise funds available for this purpose, do not propose an interim dividend."
NAV 50P - Price 28p. Think this may rise today. But then again POL released RNS about being way below the NAV and they dropped. Who knows with AIM but Id expect an up day here.
not bad rns
mmmm good rns
http://www.investegate.co.uk/Article.aspx?id=200905210700116060S