Thank You to all Sellers.It has certainly been an intersting past couple of months. I have been travelling abroad and chose to remain quiet as HEM shares plummented, now doubling my position (thanks to all the sellers, you've made my year). I have decided to start posting again now that I've completed most of my buying, subject to any further pull back in the share price.
Warren Buffet once said that the market always gives you a second chance to get into a great investment and given the remarkable pullback in HEMs share price this appears to be one of those moments. I am surprised that the stock is trading at current levels but given this fantastic opportunity I am not complaining.
Yes I am a long term investor, particularly with smaller cap stocks as they are very illiquid. Therefore I chose my investments very selectively. Trading in and out of illiquid stocks only makes sense for those with a very small net worth (if you can invest 80%+ of your portfolio in an illiquid small cap yet still trade out of your position within minutes then all power to you). So I'm in this one for the long-haul, and although my recent purchases have increased my average buy-in price somewhat, I think HEM is easily a 3 bagger from current levels. Whether this comes in the form of a buy-out or organic share price appreciation doesn't matter. Regardless, longer term investors will be rewarded. I do believe it will take time, more than I initially thought but regardless this is a very solid company that is making money, growing sales, and even increasing market share in its largest markets (last quarter proved this).
Looking forward to the future for HEM, but near term volatility is likely to remain. 2012/2013 is shaping up to be quite robust. Interesting to see all the sell side analysts lower their target prices due to the poor "macro" backdrop, but given they were burnt in 2008 by the market (and not just HEM) its not surprising. Interstingly no company specific reasons were given for the reduction in share price targets (of course, Robert and National Bank likely lowered his target due to Wellington being bought out by NBF and having a different policy on share price targets).