"The biggest issue that Hills Holding faces is that the board and management haven't worked out that the business model they have is a complete failure".
Surely the board must know?? I have read their report and two businesses that were profitable seem to now be struggling, that is DGTEC and ORCON steel. They say they have restructured DGTEC, but it remains a struggle due to the pressure of the retail market. Should they just sell it and be rid of it??
"They have a couple of reasonable businesses, but these are far outweighed by ones that are dogs. ie. Orcon."
What should they do with Orcon steel?? Sell it??
"They will slash the divi to near nothing, the banks will put the heat on them and they will make drastic an illogical decisions like selling their good businesses."
Dividend has been reduced to 5.5cents. What makes you say they will sell their good businesses?? Surely not??
"This stock will be sub $1."
price has certainly been looked on unfavourably and heading to 1.50, if it doesnt hold it will be back to old lows of $1.25.
Interested in your input peppie??
Cheers
HIL Price at posting:
$1.65 Sentiment: None Disclosure: Not Held