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Consensus community valuation
$3.68
Average Intrinsic Value
140.5%
Undervalued by
Active Member Straws
#Bull Case
Last edited 7 days ago

I've taken a leaf out of B. Graham's book to come to the conclusion that HLO is undervalued for following reasons:

- High Inside Ownership
- 1.21 and 1.2 Current and Quick ratio (respectively) indicating it will be reasonable to assume it will be a going concern for the foreseeable future
- Price/Book ratio is less than 1 (0.78) 
- Increasing Profit Margin and revenue leading up to FY20
- ROE of 12.38%
- Low P/E of 5.34 (Industry average at 17.4)
- Management's flexibility/competence; reducing net cash operating costs from $23M to $2M (per month) and discretionary spending to nil as at April 2020

The elephant in the room is obviously travel is pretty much obsolete so a rational short-term investor would steer clear. However, with a long-term outlook where it is almost guaranteed travel will resume HLO seems well-positioned and under-valued.

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