Q: Please comment on Hme's update today,and U current opinion on the stock.U last opinion was on Oct 11/23 Thinking of buying so u advice please, Txs for U usual great services & advices
5i Research Answer:
HME looks interesting here, trading at only 4.2x Forward P/E. HME returned to shareholders around $17.5M in 2023, or around 14% yield through a combination of buyback ($4.4M) and dividend ($13.1M). The company also achieved a production growth in Q4, a 16% increase compared to the same period in 2022. The balance sheet is strong, with a net cash of $1.6M. HME guides the 2024 annual capex to around $21M, while is slightly higher than 2023. An attractive name here, but investors need to be mindful of the size and liquidity risk here. Insiders own 14% and have been recent buyers.