HAL Trust has been expensive since it made a killing with selling GrandVision to Luxotica. Now it is cheap due to great operating performance of a transformative acquisition.
Interesting write-up! The payout policy that creates a 2.5% dividend yield seems a bit odd to me. Do you think this could create a group of investors who buy and sell based on the attractiveness of 2.5% compared to the general interest rate levels at that moment? I.e. buying when interest levels are very low and selling when interest levels are high. That could create share price movements unrelated to the business performance of HAL.
The policy is definitely odd. Don't think that's a big risk. Most of the returns still have to come from capital appreciation. You are also not guaranteed a 2.5% yield. If the stock declines the yield declines with it. In that regard dividend kings have a bigger risk of becoming yield plays.
Not a tax expert. HAL does everything to pay low taxes. Confident that they do not break the law though. In addition taxes are different for every country which means it has different implications for readers.
I do like and own Bollore as well. Did some research on Aker as well. What do you like more about Aker?
Diversion between underlying performance and share price is what allowed me to buy in.
the main problem remains the low profitability in the last ancillary investments made, also I don't think the estate cares much about the share price, with the dividend change the heirs can enjoy in eternity
Interesting write-up! The payout policy that creates a 2.5% dividend yield seems a bit odd to me. Do you think this could create a group of investors who buy and sell based on the attractiveness of 2.5% compared to the general interest rate levels at that moment? I.e. buying when interest levels are very low and selling when interest levels are high. That could create share price movements unrelated to the business performance of HAL.
The policy is definitely odd. Don't think that's a big risk. Most of the returns still have to come from capital appreciation. You are also not guaranteed a 2.5% yield. If the stock declines the yield declines with it. In that regard dividend kings have a bigger risk of becoming yield plays.
Thanks for the write-up Wubbe. Any idea why they paid dividends in shares? Like you said, odd and not a value accretive choice.
Recent investments in Siltronic (>5% ≈ 120m€) and Koppert (140m€)
Great addition! Saw them, but couldn't form a strong opinion and they are both not material to the thesis.
Good analysis but would have appreciated discussion about the tax and legal structure bermuda trust curacao holding future taxes etc.
Results of the shares last years not very good.
Minority shareholder protection?
I believe there are more attractive holding in europe like bollore or aker
Not a tax expert. HAL does everything to pay low taxes. Confident that they do not break the law though. In addition taxes are different for every country which means it has different implications for readers.
I do like and own Bollore as well. Did some research on Aker as well. What do you like more about Aker?
Diversion between underlying performance and share price is what allowed me to buy in.
Thanks for the write-up. Great food for thought !!!
Good write up man
the main problem remains the low profitability in the last ancillary investments made, also I don't think the estate cares much about the share price, with the dividend change the heirs can enjoy in eternity
Interesting, I'm thinking about investing in HAL