Half year figures will be poor. Hard to see turnaround before...

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jamwolf

5,217 Posts.

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19/01/16

19:40

Post #: 16827386
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Originally posted by vendor ↑

"So you dont deny your a professional shorting hills or at least hoping the SP goes down!"

lol it would have been a nice ride down hill hey??

" Selling steel manufacturing was a bad move??? A great move no one can argue that fact."

Well one could. They were getting thumped in the steel market by imports and margins squeezed due to the high $A
With the $A now in the 60's they have sold their steel businesses (at the worst possible time) and are sending nearly all remaining manufacturing overseas. Imports have risen rapidly and this would have given Hills great opportunity to grow margins, regain market share and compete.

With greater margins they could have commanded a greater sale price for their steal assets, but tragically they have sold into the worst part of the cycle. (great management call)

The remainder of their businesses are imports which means those divisions have been squeezed due to the devaluing of the $A.
It appears managements reading of the markets has left a lot to be desired too.

It is understood Hills have lost many sole agencies due to their service staffing and structural changes.

The heart maybe health care and security, but when the heart has been ripped out it will take some time to try to rebuild, if it is ever possible.

The share price, i assume, will reflect the close of the recent half year results and those in the know pushing the price further downwards.

Hills philosophy, as announced was to grow via acquisition. The issue is you never know anothers business as intimately as your own and if you are chasing acquisitions you are opening yourself up to acquire at premium prices. Massive risks when trying to grow in that manner

"The deal with woolies is only a small part of the business not the heart. The heart is technology in healthcare and security."
As margins have been eroded considerably woolies would have played a healthy part towards their NP.
More will be revealed in a month when the financials are released.

Cheers

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Half year figures will be poor. Hard to see turnaround before 16//17. Bank renegotiation is a concern. Masters now an issue.
Apart from that the shares are cheap.

HIL Price at posting: 24.0¢ Sentiment: Buy Disclosure: Not Held
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Half year figures will be poor. Hard to see turnaround before...

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