Haynes Publishing – some positive things are happening

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Haynes (LSE:HYNS) has an illustrious past (150 million manuals sold), but what we need to consider now is whether it has a future that will allow for profits of at least £2m and dividend payments of at least £1m per year.

If it can stabilise at that level the share price will rise modestly.
If there is a reasonable chance of profit rising beyond that, to the level achieved five years ago (£4.7m profit, eps 30.5p and dividends of 15.7p) then the share will be a multi-bagger.
The market, by putting the share at £1.10 (MCap £16.6m), is saying that the odds of a revival are remote.
But……Mr Market often likes to extrapolate a recent trend, and is often wrong on the potential for the profits to revert to the mean over time.
Even if the combined odds of a “stabilisation outcome” or a “growth outcome” still total to less than 50:50 this share might still be a good one to hold due to the multi-bagging potential if things go just how we want them to (but only if held in a widely diversified portfolio of shares, due to the specific risk).
So, what evidence is there that sunny uplands are within sight?…………
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