Been watching this little company for a while, and was interested to see it tipped in Shares as a play for the coming year.

The potential profit of 15-20million for the Swaylands development of luxury homes over the next 2 years is very exciting.

Company is currently valued at only 11million. Doing the sums, if profits can reach that 20million in 2 years, a reasonable p/e ratio of 10, would push this company towards a valuation closer to 100-200million.

Next years p/e of 2.5 is cheap. Throw in a potential takeover recently announced by the board.

Always difficult to predict short term. It's probably fair to assume that if a bid doesn't materialise, the price may drift lower again.

However, bid aside, the development pipeline for this company can deliver profits as far out as 2007 and beyond, perhaps 10-20million of profits. At a conservative p/e of 10 say, you could be looking at a valuation closer to 100million in 2years time, roughly 8-10times the current level.

Ofcourse, this is all merely my opinion, but if this company maintains a good 'hopper' of new development lands coming on stream then the above estimates might prove conservative on a 2-3year view.

Chart looking positive. Takeover story has further to play out but could also be seen as a distraction to the bigger picture.

The 48million Swaylands development is the big game in town. The land bank in the South East is impressive.

Earnings should be well supported over the coming 4 years.

Check out the website.

http://www.pphweb.com/

This thread should be closed - HYG is now a different trading company.

It is part of the stupid Confusion that the LSE perpetuates instead of moving to 4-character EPICs for all new companies.....thereby giving us about 25 times as many Codes as we have at present...
Dozey so-and-so's.