HTL is now $200M market cap, after an 18% one-year decline. It still has a premium valuation at 27X earnings. It is a bit leveraged, with debt/cash flow at 4X. It is expected to make 4c per share this year, rising to 5c next year. Sales growth has been consistent and is expected to remain so. It does not have a great record of beating estimates (missing 7 of the past 8 quarters). Insiders have a decent ownership and are committed. Guidance calls for 10% to 15% organic sales growth this year, to $78M+. With good cost control, it is expecting margins to improve throughout the year, after a relatively low Q1. Overall, we would consider it interesting. We would like to see better execution, and a lower valuation, but we think it does have some long term potential.
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