Helloworld to fly into the sky

Wilson Asset Management

Wilson Asset Management

In our view, travel franchise business Helloworld Limited (ASX: HLO) provided one of the most positive results of the recent reporting season, announcing earnings before interest, tax and depreciation of $25.3 million. An unloved stock over the last few years, the company has been a perennial underachiever with declining earnings. We believe in the ability of the new CEO Andrew Burnes to turn this business around by stabilising the retail network, renegotiating more favourable commission and override deals and executing targeted cost savings. Shares in HLO closed at $4.90 today, up 45% since announcing its results on 25 August 2016. We bought shares in June this year at $2.80 as a research-driven investment. We hold shares in WAM Capital and WAM Research.


2 stocks mentioned

Wilson Asset Management
Wilson Asset Management

Wilson Asset Management has a track record of making a difference for shareholders and the community for 25 years and is the investment manager for eight LICs - WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB), WAM Microcap...

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