who? I hear you say!
I came across these guys by searching for stocks trading below book value with strong operational cashflow. Many dogs show up when you do this sort of scan, but these guys were somewhat interesting..
(The fact there is no HC thread on them is interesting)..
They own a few brands, and in effect allow independent operators of things like independant hardware stores and nurseries compete with the likes of Bunnings by offering their members various services from point of sale, wholesale economies of scale, supply chain, backoffice, customer service training etc.
They have really, really small volume - nil day trader interest
They have never diluted
They do not do director options (amazing)
They have not increased their long term debt in ages
Last year was a bad year and the stock tumbled (they claim it was a once off and have rectified and they still paid a dividend)
The company has been around for years
They pay a healthy yield
I took a punt on the word of management that things were on the mend a while back. Recently they announced a moderate revenue increase and a much better half yearly result and its off its sub $7 lows.
Any FA people here like to comment? I can't see much trader interest in this one :-)