I have added HSP to my portfolio on 22/3/12. HSP are involved in the supply, movement and management of mineral resources and the provision of support services to the energy and waste industries. They are a fully integrated business; they source, produce, process, handle and transport a wide range of bulk materials.
Hargreaves Production Division produces coal, coke, and smokeless fuel briquettes; it recycles tyres for customers throughout the UK and in Europe. The Hargreaves Energy & Commodities Division provides coal, coke, minerals and biomass products to a range of industrial, wholesale and public sector energy consumers. Basically they produce coal/coke & other fuel, supply it, transport it and provide support services. This fits in with my theme of commodity inflation but it should also benefit from increased demand due to a global recovery.
The reasons for identifying HSP are a p/e of 10, 1.5% div yield covered more than 6 times plus growth forecast at 28% for 12 months to 31/5/13. So it works on a standalone basis but is a play on the macro themes. The share price has been climbing for 3 years now and keep on putting in new highs.
My entry at 1200p is 6.6% below recent highs and despite the recent market moves I am currently up by 2.4%. The share price chart looks bullish with the moving averages turning up.
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