Forum Archive Index - February 2004

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Macdunk,

>
> hi snoopy.
>  Everyone's running to the dogs.     Please for petes
> sake give the people an unbiased FA,  on HQP.
> Tell them about the cash flow In the hire business the other asset
> sales property sections etc.
>

HQP is a difficult one to talk about for me Macdunk.   I know the 
business has been around 'forever', but not in its current financial 
structure and it is a newcomer to public listing scrutiny.

Because Hirequip 'appeared' out of the old 'Southern Capital' there 
was no requirement for a prospectus to be issued.  There is little 
historical data that is on record.  But HQP certainly have a strong 
position in the hire market-  that is a positive.

Is Hirequip a good cashflow business?     Cashflow from the small 
hirers, no doubt, is good but what about the bigger guys?   Presumably 
they are on credit?  What happens if a contracting firm goes bung?

What happens if the hire business goes into a cyclical downturn?  Can 
Hirequip quickly offload their excuvators?  Who would buy them?   
Wouldn't Hirequip be forced to quote for jobs at rock bottom prices?  
What sort of pricing power do Hirequip have?

Added to these 'core hire company questions' there are the legacy 
issues, principally property inherited from the old Southcorp.    From an 
outsiders perspective my view is that the disposal of this property is 
being handled well.  But can they use this capital to improve the hire 
business?   Or are the sharteholders expecting a special dividend?

More questions than answers I'm afraid.

SNOOPY



--
Message sent by Snoopy 
on Pegasus Mail version 4.02
----------------------------------
"Dogs have big tongues, so you can bet they don't 
bite them by accident"


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/