Hammond Manufacturing Company Ltd T.HMM.A

New High

[HyperCube]

HMM.A reached a new high today. Yet the stock is still incredibly cheap. The price to book is currently 0.717, price to earnings 5.9. And earnings should grow soon with their expansion going into production in less than a year. In a year I expect the price to be much higher.

Note: this is a copy paste of my June 06, 2022 post. I had to change the price to book value, but not the price to earnings.

[pennydredful]

any chance   for dividend   or   all  excess   cash going  for    expansion  ?

[HyperCube]

The new facility is supposed to be in operation in a few weeks. I'm not an insider, it is quite possible that we will hear about delays and extra costs in those few weeks. But up to now, every thing seems to be going fine. Their debt load is not very high after having paid for the new facility. A dividend increase is quite possible.

[Paddy902]

And still hoping for that $5 level....any day now, maybe even tomorrow!!

[babybunny]

$5 is nothing remarkable, still a bargain basement price.  I expect Hammond to be bid up closer to book value once the rock solid full year 2022 financials are disclosed.

[wkrpradio]

The problem is that it is a thinly traded stock that has a dual class shareholder system. The Hammond clan has all the power.  

[HyperCube]

Yes HMM.A is thinly traded. But for the past few weeks there has been a little more trades. And the dollar value (number of shares times price) of those trades has increased a lot. I think the dollar value volume is more important than the number of shares traded. I also expect interest and volume to increase in the next few months with the new facility starting up. HMM.A will still be thinly

[wkrpradio]

You are entitled to your opinion , but it is a well known fact , that large institutions will not get involved in these kind of companies. Also the P/E ration is well below the market average.

[HyperCube]

I'm not sure what is the point you are trying to make when you say that the P/E ratio is well below market average. Are you implying that this is a bad thing? I like to buy companies with low P/E. You don't pay much for lots of earnings.

[wkrpradio]

I'm just saying that making money is the object of the game. I've owned HMM.A and HPS.A for several years. I reduced my holdings in HMM.A and purchased more HPS.A in 2020 for $7.45. HPS.A is now trading in the $46.00 range. Momentum and volume will beat personal feelings every time. 

[HyperCube]

In my opinion, momentum, volume and personal feeilings all have little value in the evaluation of a stock. Three years ago MSFT had momentum and volume. HMM.A had neither. Since then MSFT is up 73%, HMM.A is up 248%. You can find very few stocks that had momentum and volume three years ago that did better than HMM.A. In my opinion, price to earnings, price to book and projected future earnings

[wkrpradio]

As I said yesterday, that it's all about making $. Check out HPS.A today , it's up to a new high of $51.23. Numbers don't lie.  

[HyperCube]

There, you have your $5. You have been waiting for this for some months now. I hope this makes you happy. For my part, I still consider HMM.A to be severly undervalued.

[Paddy902]

Was very happy to see $5 because as expected the gains have accelerated since then, up now over 12% in less than a month. This is a great race between HMM, HPS and PLPC. All nice winners over the last 12 months..