Haynes Publishing – some positive things are happening

Share On Facebook
share on Linkedin
Print

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?…………
To read the rest of this article, and more like it, subscribe to my premium newsletter Deep Value Shares – click here.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20210617 04:55:51