The biggest problem for HST was timing - they bought the Rotary group just a few months before the GFC. Loaded up on very expensive debt and they paid way too much for that business.
The Rotary acquisition killed these guys - Rotary was almost the same size as the Hastie group when they acquired it. They paid AUD 150m cash and provided about 15m shares on top of that.
Then along came the GFC, wiping out business that Rotary had & was going after. $150m + white elephant.
All this is said with 20/20 hindsight - i'm sure management saw value in the acquisition at the time.
HST Price at posting:
24.0¢ Sentiment: None Disclosure: Not Held
