"Let me share with you my internal monologue on LSE:JHD:James Halstead, a company I've wanted to invest in so long, it's doing my nut in.The globetrotting company's annual report is an annual highlight. The business monotonously earns humongous ..."
Some great points in the interims.....increased divi, cash levels, optimism following trade fairs and exchange rates for sales.
But some things just causing a little more wariness......reduction in EPS, UK destocking?, one company they supply taken over by private equity and the hope (not expectation) they will resume normal purchase levels. Also exchange rates will increase materials costs.
All in all, while I wouldn't want to add to holding at the moment I also wouldn't want to sell because of long term record of company, so perhaps just a hold.
"LSE:JHD:James Halstead is an improbable firm. It makes extraordinary profits from manufacturing a boring everyday commodity. It tells the competition how to do it, yet in terms of profitability it has no peers.The company manufactures the ..."
" Some of the companies ranked highly by the Decision Engine have questions to answer.Three years ago LSE:ANCR:Animalcare, which supplies pet medicines and other products to veterinary practices, started an investment programme to enhance generic ..."
A lot of truth in what you say Games. I wd expect a period of
Flattish performance while the business catches up with the price. Still I am not a seller cos of capital gains tax and long term faith in future growth, based on its steady record over 20 years plus.
My thoughts -- great company with a long and steady history, however, because of the dearth of other good companies around - perhaps unfair, but has some truth -- the share price has been bid high and is still quite expensive :-
1. the P/E at 24 is very high with a projected EPS growth of just 3% current and 6% next year.
2. Yield is OK at 2.9% but the cover is only now at 1.4 so this is getting close to the bone.
3. Directors have been net sellers over the last years and most recently the FD offloaded £417K's worth late last year at 460.
On the positive side, operating margins and return on assets are high, showing what a quality company this is. This would be on my list at 300-325 level.
"In another four-day week, James Halstead will report. One analyst reckons investors are in for double-digit dividend growth.Monday 28 March - Easter MondayAGM/EGMTurkiye Is BankasiTuesday 29 MarchTrading statementsArtilium, Public Power ..."
Yes there have been (several I think) stock splits. They have a history of preferring a manageable share price so they split the shares when they get a bit valuable. Don't really understand the reasoning myself but it has been their long-term strategy. It also explains why the eps has not appeared to do very well.
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