The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
any thoughts on what's happening here??? clearly something is afoot...
3 Quick reasons to Buy 1) VALUATION of the Company: a few quotes from the Shareholder's letter: The Company’s preference share interest in the special purpose vehicles (Burke companies 1, 2, 3 and 4, owners of the project companies) continues to grow, with a preferred capital return of £350.8 million and the 12% per annum accruing preference share dividend currently standing at £143.7 million at June 30, 2010. We are confident that the true underlying value of the Company is intact and will continue to be enhanced for all shareholders’ benefit in the future. 2) The HB are expanding their Township projects in new cities which will require financing. HRCO share price must be an embarrassment and could be detrimental in attracting new funds. 3) Increased activity by Private Equity funds in the Indian market...
bullish poster and the share price tanks.. are we back to the HRCO fun and games???
I emailed IR and the results are going to be Mid-December... Looking back it was the same in 2008... The real estate market is exceptionally strong in India at the moment.. The sales prices look way ahead of the original plan now and judging by the website the pace of sales seems to have gained momentum... There is a remote possibilily that by mid December phase 2 may even be announced at Channai, that would be great news... Large stakes are being traded and I feel that by Jan we may begin to see a proper return...
our averaging down might be rewarded.. Clearly someone is building quite a position.. and why not.. four projects in a booming economy.. built by a leading builder who is trying to secure funding for more townships.. trading at 10% of NAV, with an accrued dividend of 3x market cap... 500p here we come!!!!
Am pretty sure private equity are stake building here.. The HB are launching 2 new township projects and I think this share price is now causing them embarrassment.. Btw it was rpt not rgt i was talking about.. similar graphs but rgt asyou say is ramped by the deluded!!
The other dog in my portfolio is RPT, which I've been buying over the last 2 weeks, averaging to no avail!! Whats your chart view there?? Thanks
Is the downtrend broken at last???
Yes.. Nice to be on the uptrend again!!...
Even one blue day is a welcome sight in this stock.. Lets hope for a similar pattern to last year and the 150s will soon be upon us.. GLA
i've got urals on my list to look at today.. charts look similar..
I sent the email to IR and the shareholders letter was released the following day, i guess that was the response!! Fortunately I have these in my SIPP so timeline is slightly less important.. Still has been frustrating watching these fall whilst the Indian market has reached new highs!!! As you have stated and as we can all see, there is value in HRCO, its just waiting for the catalyst to see it reflected in the share price... I averaged down in the 90s and a bit like you will hold off now in case it falls further... This morning it looks slightly healthier, lets hope its a new trend!!!
I averaged down when it was in the 90's thinking it couldn't get lower!! The fundamentals seem to be in place, just not the investors!! I have never switched my screen and seen this stock rise... Even one blue day would be nice...
Just re-reading the recent shareholders letter: "The Board has long believed that the market capitalization materially undervalues the Company and its prospects, and it has been keeping this situation under constant review with the objective of redressing this imbalance." We are down another 10%+ since this statement.. so maybe support is on its way.. gla!!!!
sadly there seems to be none...
Market continues to rally and this dog drops further!!! Lets hope the Laxey group have another shot, better than the hollow promises of shareholder value from the HB crooks!!!
The relentless slide continues!!! I wonder where this dog will settle.??? Won't buy any more but won't sell. I am mentally preparing myself for 50p again!!
I really don't hink the working capital is an issue.. This company is an investment vehicle (its not Hirco the Building company).. If the developments have further problems then this will be shown in NAV and not within the financials of Hirco plc... The concern remains the Timeline of the developments... On the positive side, the Board seem to be demonstrating some form of coporate governance and are clearly as frustrated as we are with the discount we trade at.. even stating the accruing preference share dividend is now nearly 2x market cap... I think this letter clearly lays out the current situation and increases the probability of corporate activity.. ie Board can not be accused of hiding value of Company to shareholders... For me, I will prob average down a bit.
The money has now been invested.. Basically as shareholders of HRCO we are stakeholders in two of the Hirco township projects (commercial and residential).. This was set out as the aim at time of IPO.. Looking at the facts the Management have on the whole delivered as set out in the initial plans at the time of listing.. The one exception however has been the Timeline.. Due to the credit crunch the projects are running 1-2 years behind schedule (hence the delay in dividend stream).. On the positive front, prices being paid for the apartments are above original expectations.. thus NAV is above expectations.. in fact share price is now above accrued dividend... In terms of funding, HRCO should be viewed a bit like a REIT, ie the company only would require more funding if it invested in new projects... Issuing stock at the current discount to NAV would never be approved because of the dilution to existing shareholders. If this stock was trading near to NAV, then issues would take place and no doubt we would be backing the new towinship projects that Hirco are launching.. Personally I think there will be some corporate activity as the accrued dividend alone makes sense for the HB to do this... Also Standard Life were very vocal in support of the Board when Laxey tried to realise value and have subsequently seen a dramatic fall in the value of their stake.. The wall of worry with this one is fears over the indian property market and ethics of the HB.. Personally I feel these are more than compensated for at current levels,,,
Nothing back yet from IR.. I bought this stock as my proxy for the indian market!! Got that so WRONG.. this stock dives as the Indian market regains all time highs!!!! I followed the link to the youtube clip of the site development on the RNS... at least the apartments are taking shape... The finanacials seem to stack up, I'm just hoping we are not being duped some how... Anyway lets hope for some blue next week for this dog...