snowball82 Posted May 26, 2013 Share Posted May 26, 2013 This company is one to watch. Hammond Manufacturing is one of the cheapest companies in the Canadian market, the stock price is less than 40 % of the net asset value without taking into account the market value of assets are higher. A boon as Graham or Schloss liked. The carrying value of the company is more than $ 2.70 per share and we can buy for 1.10-1.15. I bought around $ 1. At current prices, we should perhaps make a global offer to Mr. Hammond. He has been president since 1978. Do you think Mr Market indicates the right price ? do you recall H. Paulin? boring but making decent profits up unce bid ... Link to comment Share on other sites More sharing options...
snowball82 Posted May 28, 2013 Author Share Posted May 28, 2013 the real question is: When Mr. Hammond sell its shares? 2013? ;) Link to comment Share on other sites More sharing options...
Kraven Posted September 17, 2013 Share Posted September 17, 2013 Great piece today on Oddball's blog on this one. http://www.oddballstocks.com/2013/09/hammond-manfacturing-boring-cheap-and.html Link to comment Share on other sites More sharing options...
snowball82 Posted July 29, 2014 Author Share Posted July 29, 2014 .10 EPS last quarter, last trade now 1.80 $. Mr Market should take a look https://www.hammfg.com/files/news/2014/2014-07-24-second-quarter-2014.pdf Link to comment Share on other sites More sharing options...
yadayada Posted July 30, 2014 Share Posted July 30, 2014 any idea what is causing the big increase? Link to comment Share on other sites More sharing options...
Guest 50centdollars Posted July 30, 2014 Share Posted July 30, 2014 any idea what is causing the big increase? Maybe because its tremendously undervalued Link to comment Share on other sites More sharing options...
yadayada Posted July 30, 2014 Share Posted July 30, 2014 no my fault, I meant the big earnings increase. They cut some costs? Link to comment Share on other sites More sharing options...
oddballstocks Posted July 30, 2014 Share Posted July 30, 2014 I wrote a follow-up post on them: http://www.oddballstocks.com/2014/07/hammond-manufacturing-revisited-still.html Summary is this: -At 54% of BV up from 44%, so still cheap. -Around 6.3x earnings. Management seems to think the run-rate will continue. -Earnings have been juiced by currency, a lower CAD helps them, they gain marketshare and ship more products. -They recently paid a dividend, small, but cash is coming back. Link to comment Share on other sites More sharing options...
snowball82 Posted February 22, 2015 Author Share Posted February 22, 2015 Last trade at $ 2.90, a close to 3x baggers so far. Still very few interest from investors. Link to comment Share on other sites More sharing options...
rb Posted February 22, 2015 Share Posted February 22, 2015 Just looked at it. Looks like you got a nice catch. One question though. Do you know why the inventory numbers have been going up faster than sales? Link to comment Share on other sites More sharing options...
wachtwoord Posted March 31, 2016 Share Posted March 31, 2016 Their annual report came out this month https://www.hammfg.com/files/news/2016/2016-03-04-annual-report-2015.pdf and they are leveraging up a lot to expand their production line (at the cost of 20M versus their 26M market cap). Part of the funding is an interest free loan from the Canadian government (~3M) and a grant (~1.5M) but the rest is currently a bank debt @3.3% (which is callable without notice) and will be rolled into fixed rate notes during the year (their interest rates range from 5-9% roughly). Their historic rates of return have not been impressive (in the 5% range) although in the last couple of years it has been >10%. Why do they think they can beat their cost of capital and achieve a good rate of return for shareholders? Btw: they trade at 0.6 book and the new production wil come online at the end of Q1 2016 (now!?) Link to comment Share on other sites More sharing options...
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