here we go again15 Oct 2009 15:17
The price takes another substantial hike up and we ares till waiting for an announcement. The positive is that there has been no announcement from the company stating tehre is no reason for the rise the last few weeks, which indictae to me that there is a reason. It could eitehr be that September has seen a real pick up in business travel or that the expected takeover or management buy-out is just around the corner or it could be both.
Callandy, half tehperiod you mention was in HRG's full year result which matched last year's result and the first qurter this year was dwon 7% on expectations but with cut in expenses end of year should be in line with expectations. Very few companies are down 40%, only this very heavy into banking and insurance, generally they are down 35-30% and things arenow coming back. HRG has maintained their clients well, won good new ones and cut cost besides getting good revenue from outside UK which with the weak pound has helped their accoutns further. Normally I would say to topslice if you have substantial profits but This one I willnot touch till we reach 50 and then I will look again. The profits are more orless where they were when the SP was 80 and the company has positioned it self costwise to really increase profits when business picks up, andthat is all without even considering the takeover which from this base should send the shares to between 60 and 90. JUst my opinion DYOR