Horizons Active Floating Rate Snr Ln ETF Class E T.HSL

The investment objective of HSL is to seek to provide unitholders with a high level of current income by investing primarily in a diversified portfolio of U.S. senior secured floating rate loans, which are generally rated below investment grade (loans rated at or below BB+ by Standard & Poors, or a similar rating by a designated rating organization) and debt securities, with capital appreciation as a secondary objective. HSL principally invests in a portfolio of U.S. senior secured floating rate loans which are generally rated below investment grade (loans rated at or below BB+ by Standard & Poors, or a similar rating by a designated rating organization) and debt securities. HSL may also invest in Listed Funds, as they are defined in the ETFs prospectus, that provide exposure to senior loans.

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Horizons Active Floating Rate Snr Ln ETF Class E

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Post by sculpin2on Feb 16, 2012 9:44am

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Post# 19542101

Tgt to $1.50

HSE Integrated

hsl

HSE Completes Acquisition of Flint Safety Unit. Raising our Target to $1.50 from $1.20

Adding Acquisition to Estimates Leads to Target Price Increase

This morning, HSE Integrated announced that it has completed its acquisition of the business assets of the Flint Safety Unit. Today's release disclosed a purchase price of $2.2 million in cash, subject to adjustments, with an effective date of February 15, 2012. Overall we believe this acquisition is attractive as it is likely accretive and relatively low risk (same business and locations as HSE).
With the transaction now closed, we are incorporating this acquisition into our forecasts. We believe this transaction adds roughly $10 million in annual revenue and nearly $2 million in EBITDA. Thus we are increasing our 2012 EPS estimate to
.15 (from
.12) which leads to an upward revision in our target price.
We maintain our Strong Buy rating with a revised target price of $1.50 (from $1.20). The stock appears very compelling at these levels trading at only 3.5x and 2.7x EV/EBITDA against our 2011/2012 forecasts. Our target price of $1.50 values the company at a 10x P/E and 3.9x EV/EBITDA multiple against our 2012 estimates.