Hunter Hall International Limited
|Year Ending 30-06-10||43.7||15.5||-30.9%|
|Year Ending 30-06-11||51.0||13.3||16.7%|
Past earnings and FUM
Hunter Hall’s funds are substantially ahead of their benchmarks this year. FUM up to $2B as of Nov 24, fund bonuses are up, [update: as per comment below, HHL's bonuses are still in red despite being up $10M in five months], sees profit and dividend up 10% over 2009. I am unsure what profit Peter Hall was referring to. He said net after tax profits up by at least 10% over 2009. Which did he mean?
- The net profit of $1.4M or 5.3cents due to the $12.2M markdown of financial instruments.
- Profit attributable to HHL shareholders of $7.4M or 27.55cents
- Morningstar’s normalised 63.2cents
- Profit from investment management of $15.5M
Super quick value check. Dividend of $0.5 is an 8.4% return to SMSFs on current price of $6.85. That’s not a screaming bargain anymore, but Hunter Hall do appear to be a quality team.
Add in the high probability that FUM will trend up and dividends will at some point hit new peaks, then the price is fair to a little discounted. If you’re after a ten bagger then HHL isn’t for you, but you should check their fund holdings as these guys seem good at spotting excellent opportunities.
Disclosure: Long HHL