Hss Hire Share Discussion Threads

[deanroberthunt] 28/8/2015 07:28

this looks like a stitch up from the off..

but I'm just in for the punt, it'll either work or it won't, but my avg. is 75p so my downside is limited imvho...but heyho who knows could fall to 10p

[karmastuartra] 27/8/2015 21:47

Should see a nice bounce next week .

[paulypilot] 27/8/2015 21:33

Hi,

I wouldn't pay any attention to forecasts/ratings from JP Morgan Cazenove, because it was that firm (aided by Numis) which floated HSS at an over-valuation, just a few months before it warned on profits.

So, in my eyes anyway, they are untrustworthy. Also, they now have to put out bullish notes, since anything else would be an admission that they shouldn't have floated it at such a high price (or at all).

It's now a total can of worms, due to the excessive debt, very weak balance sheet (negative net tangible assets), and weak trading/uncertain outlook.

That said, at some point it could bounce nicely, if trading stabilises. But I think people punting on it now are still over-paying (once you factor in risk, and debt).

Why on earth is it opening 50 new branches this year, when they don't seem to have control over the existing business? Strikes of bad management, much like Speedy Hire.

Regards, Paul. (no position, and no intention to open a position)

[seball] 27/8/2015 21:14

Ex divi date is 3/9/15. So yes we could see a rise. Divi is 0.57p about 0.8% every little helps. Good luck

[deanroberthunt] 27/8/2015 20:47

could it rise into the ex divi date ?

[seball] 27/8/2015 19:50

HSS Hire Grp Plc (LON:HSS) Rating Restated

The financial company have set target of GBX 180.00 on HSS Hire Grp Plc (LON:HSS) shares. This is 106.90% from the stock close price. In an analyst report sent to investors on 26 August, JP Morgan Cazenove restate their “Overweight221; rating on shares of HSS.


Read more: hxxp://www.octafinance.com/jp-morgan-cazenove-reaffirms-a-overweight-rating-on-hss-hire-grp-plc-lonhss-and-gbx-180-00-target/176051/#ixzz3k2iHs89g

[deanroberthunt] 27/8/2015 19:26

although to be equal it never really recovered from the June t/u

[deanroberthunt] 27/8/2015 19:22

jonwig

nothing goes down in a straight line.

[seball] 27/8/2015 18:44

jonwig I'm sure that loss will be reduced as the branch roll outs reduce and add to earnings as they gain market share. Cost savings will be made in 2016. Im buying at these levels as I see good value.Good luck

[jonwig] 27/8/2015 18:26

seball - they don't make a profit (though they do make EBITDA which is witchcraft).

The H1 loss was £14.1m and operating cash outflow £39.0m.

[jonwig] 27/8/2015 18:22

graham - I suspect some posters here are opportunistic buyers for a "bounce" of some sort. This may happen, of course, but so long as the wider market is so nervous, that looks a long shot to me.

The 2019 secured notes would worry me. Whilst they have enough property, plant, equipment to cover the security (£136m, I assume) they have net current liabilities which would push them into insolvency. The prospectus is silent on covenants but debt-for-equity is a favourite of secure bondholders!

Regarding director purchases, the chairman apparently bought a few at 173p just five days before the June trading statement.

[seball] 27/8/2015 18:17

HSS at these levels is undervalued and oversold. They still make a profit and it was due to the cost of the branch roll-out programme half year profits were flat on 2014 at £28.9m. The branch roll out will have a benificial effect as revenues grow and market share grows.27 branches were rolled out during the period. The mature core business generated revenue growth of 9 per cent to £125m, while the group's specialist business - which provides climate control, powered access and cleaning hire equipment - grew almost a third to £21.3m, helped by the acquisition of All Seasons Hire. 2016 will see further benefits as costs are reduced to the tune of about £12m. I'm very confident in the business and anyone buying in at these levels are getting a bargain. Good Luck

[grahamg8] 27/8/2015 17:45

jonwig your figures look spot on. Goodwill is all well and good as long as the tills keep on ringing. If the wheels come off then it's worthless. HSS is certainly going for growth and the expanion costs have wiped out any profits for now. So do we hit the buffers first or can the tanker be turned round in time, if you don't mind a split metaphor? The Directors have pretty much lost all credibility with such a dire set of numbers just a few months after the IPO. The share price drop therefore doesn't seem to be too much overdone. Brave or foolish buying I really don't know. Time will tell.

[tsmith2] 27/8/2015 17:35

Loonies out may well be time to buy

[my retirement fund] 27/8/2015 16:52

I doubt the directors would spend their own money on this crud. I guess they may consider buying in a prepack administration scenario one day.

[seball] 27/8/2015 16:12

Any director buys over next few trading sessions and this will be back over 80p in a flash.

[liam1om] 27/8/2015 16:05

Quite an amazing drop here. I can't remember the last time I saw such a sharp drop. As others have pointed out this is now in over sold territory.

[seball] 27/8/2015 15:46

Looking at fundamentals this is oversold. Agree sometimes you can never guess the market but I'm confident in long term prospects as HSS continues to gain market share. Strong buy at this price IMO

[deanroberthunt] 27/8/2015 15:36

I agree it's an avoid for a longer term buy and hold

but I'm just in for the wam bam thank you maam

[mikeh30] 27/8/2015 15:03

And this distribution centre will put pressure on the balance sheet too.Could be 50p in a flash

[jonwig] 27/8/2015 15:01

My own warnings about HSS, at IPO and recently, will have gone quite unheeded ... not to worry, I'm no guru but I can read balance sheets.

However, two rather more heeded commentators have spoken today with more or less the same message -

• Paul Scott on Stockopedia,

• A fund manager on Share Prophets. (Yes, I know, but this is a serious article!)

So, apart from the busted balance sheet and flaky business conditions, management are committed to opening new branches apace, whilst also cutting costs?!

As for a recent comment about assets here, they have net assets of £159m, which includes intangibles (mostly goodwill) of £179m.

They don't have forever, either, a senior secured note (£136m) is a 6.75% fixed rate bond maturing in 2019, listed on the Luxembourg stock exchange, and is secured by liens on certain assets. Covenants will be attached to this which could well lead to the note holders pushing the company off a cliff before then.

[anusol] 27/8/2015 14:51

pretty shocking, and I bet the Board weren't expecting this level of hammering given that the news had already been a around since June.
Still too early to be dipping in.