Hammond Power Solutions Inc T.HPS.A

ittle-known smaller stocks that a $2.3-billion fund manager

[microcaphobby]

What have you been buying or adding?

We’re always looking to hold high-quality names, which in this market environment are companies that are growing and still showing profitability and have very strong margins. These factors are especially important in a high-inflation environment. One name we recently added is Taiga Building Products Ltd., which provides decking products, railings and accessories. Other names we own include envelope and paper company Supremex Inc., as well as Hammond Power Solutions Ltd., which makes transformers used in electrical equipment and systems. These have been very profitable names for us, and we’ve increase

[HermannHaller]

I own a lot of Supremex but this Hammond looks good too. Can you tell me is there any analyst coverage?

[microcaphobby]

There appears to be three analysts. The mean estimate of earnings for the 2nd Q ( t be relased next Tuesday) is 46 cents. quite a range though from llow of 29 cents to high of 55 cents. It is possible that they make the high number as analysts have been consistenlty  very conservative  in their estimates. The company  made 72 cents the first q. 

[HermannHaller]

Thanks. I see that Canaccord covers it but I don't have access to their research. Yes the estimates for Q2 are all over the map. That doesn't give me much confidence. Also, the consensus for the year is $1.96, which looks very conservative with 72c in Q1. Either margins come back down fast, and the first quarter was a blip, or the analysts have been too cautious. 

[cashworx22]

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