I'm guessing the primary attraction in HIL over the past 12 months+ has been the high yield offered(10c...FF on a $1.00/$1.25 stock). The question now becomes whether that attraction will remain. Now its almost? certain that next year's divi probably won't be 10c again BUT even if it were to fall 45%(as KitKat2 has pointed out) thats still 5.5c which still represents ~ 7.5%/p.a. gain(based on these low 70's SP value)...still far better than any F.I. investment ATM, right.
Sure, the next question is whether you see that HIL's current SP level is oversold and/or near basement prices? That is, no significant capital losses ahead. Well, hell, no one knows that for any stock when one 'buys' at a particular level but if you look at other perceived high yielding stocks with their 'problems'...XAO or internally related(like TLS, some banks etc)...that hasn't stopped these from rising. In addition, as Ocker has mentioned, HIL has a net asset backing of $1.23 per share(atm?)together with what Warnie has advised...CBA advise they are "buying back" at these levels and advising any prospective client sellers of such to allow them to reconsider and confirm their sell orders. Clearly, the latter reason is the reason for the S/T buying this a.m.but it would be nice to know what their(CBA's)buy-back price limit...could it be 97c(basis the charts)?
For all these reasons I'm on a "buy-back" mission also.
HIL Price at posting:
78.5¢ Sentiment: ST Buy Disclosure: Held
