RE: Why the drop?27 Jan 2022 16:15
How very dare you! My working life was spent entirely in the private sector and my Yorkshire heritage means I have a built in instinct for value for money, which doesn’t always mean cheap. I feel sure the Halstead family, despite being Lancastrians, feel the same.
Your accusation of money wasting (despite having no idea of the cost or apparently the reasons for doing the bonus issue) seemed churlish to me. It ignores the fact that the family interests are aligned to yours and mine and I trust them to run the company wisely, via the BOD. After all, they have been doing exactly that for 40+ years and have turned a small NW company into a global supplier, valued at £1 billion plus. No apologies for cheerleading.
As for ian67 and his own lack of understanding, on 13th Jan, the day before the bonus issue, the JHD closing price was 578p (so 289p post bonus) not 550p, perhaps they didn’t do reading at his school. The closing price on 14th Jan was 298p, so an increase. There would be no reason that the bonus issue itself would affect the price in any way, so his happiness at the share price holding up is based on nothing.
As for trading JHD to make a few bucks, good luck with that strategy on a share with a P/E over 30, you might get lucky, it wouldn’t be top of my list of shares to trade. It is top of my list of shares to hold, though a more generous dividend would be welcome, they’re cautious about that aspect of the business.