Forum Archive Index - February 2004

[<philip@goodreturns.co.nz>]

I've been asking around on this one and the comments from a fund manager
(one of the smarter ones who invests in NZ shares and has made money) was
that while HQP looked good the company was still unproven. This, I suspect,
picks up on the earlier point. That is the company is a lot different than
it was before and it's still early days.

(The Investor Interview last year is probably worth having a look at again
http://www.sharechat.co.nz/features/iinterviews/article.php/33e773ee)

While still unproven this manager had a lot of respect for Wong.

-----Original Message-----
From: sharechat-owner@sharechat.co.nz
[mailto:sharechat-owner@sharechat.co.nz]On Behalf Of
tennyson@caverock.net.nz
Sent: Sunday, February 01, 2004 10:11 PM
To: sharechat@sharechat.co.nz
Subject: [sharechat] Fundamentals of HQP

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



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