HRL 4.17% 12.5¢ hrl holdings ltd

HRL is one of those "zombie" industrial juniors that lacks a...

  1. 565 Posts.
    HRL is one of those "zombie" industrial juniors that lacks a profile. I have met Dabelstein and Anderson on numerous occasions and have been a strong supporter and buyer of the stock since 6.5c, and again recently when it got down to this ridiculous level. Why I believe this is an outstanding opportunity,

    * Conservative management. Dabelstein can be textbook, but he knows his stuff and is driven to see this company succeed. Always acts with the highest level of professionalism in our dealings.

    * Share price weakness due to a large 10c placement to buy two new businesses. A combination of tax loss selling and stop losses as seen an opportunity around 8c.

    * Businesses in NZ seeing strong growth, solid clients all with the potential to expand. HRL are heavily involved in compliance and have contributed to NZ legislation on HAZMAT management.

    * Octfolio likely to be a solid performer, although a company "keeper" rather than maker.

    * Morrison Geotech a family run business with strong contracts. HRL appear to be integrating this business well.

    I like this company as a longer-term growth opportunity. Once a consistent flow of improving quarterly cash flows are established, small cap funds will be all over it and blink and you will miss the re-rating.

    I hold personally and will continue to buy HRL as funds I don't need tomorrow become available.
 
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Currently unlisted public company.

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