Harris Scarfe Holdings Limited
Recommendation
Harris Scarfe Holdings Ltd -
HSL
Current price
n/a
Price at review
$2.21 at (20 November 1998)
All Prices are in AUD ($)
Q - Since reviewing Harris Scarfe on August 14 (Accumulate-$2.51), its share price has dropped to current levels of around $2.21. Why is this and what should I do?
A - One of the main concerns with Harris Scarfe is its ability to maintain growth momentum - during the past two years it has recorded EPS growth of 46% and 50% and this isn't easy. While it would be foolish for anybody to expect that such rates of growth are a regular occurrence, during fiscal 1999 we are still forecasting growth at the EPS level of around 15%. After all, first quarter sales increased by 26.5% and like for like sales rose by 5.4%. Therefore, with a solid yield (above 6%) and sales growth still very much on the cards, we remain comfortable with our forecasts and the company's short-term prospects. HOLD/ACCUMULATE on WEAKNESS.
IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
Recommendation
Harris Scarfe Holdings Ltd -
HSL
Current price
n/a
Price at review
$2.21 at (20 November 1998)
All Prices are in AUD ($)
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