CALGARY, Sept. 1 /CNW/ - Humboldt Capital Corporation (TSX-V: HMB)
At June 30, Humboldt's net asset value had increased to $2.86 per share,
compared with $2.82 per share at the beginning of the quarter, in addition to
the $0.25 per share dividend, distributed during the quarter.
For the six month ended June 30, 2009, Humboldt reported earnings of $5.2
million or $0.43 per share compared with earnings of $4.5 million or $0.37 per
share for the six month ended June 30, 2008. Earnings for the first half of
2009 were primarily the result of an increase in value of its portfolio of
investments during the period which increased by $6 million.
At June 30, 2009, Humboldt's working capital was $16 million or 45% of
its asset value.
During the second quarter of 2009 Humboldt increased its investments in
international energy stocks while deciding to maintain a strong liquidity
position through the third quarter of this year.
The significant stock market low, at the end of Q1 09, most likely
indicated the panic bottom for this market cycle and with the steady increase
in world wide indices since then, bodes well for a sustained but choppy upward
move. Humboldt's investment outlook for the balance of 2009 is now more
optimistic and the Company plans to steadily redeploy a portion of its cash in
selected equities over the remainder of the year.
Humboldt now has a very positive outlook for commodity stocks.
It is clear that the world wide stock markets are discounting a steady
world wide economic recovery. This current business cycle, while very severe,
appears to be following the pattern of previous stock market and economic
downturns. Hence, a year of financial crisis is followed by a lengthy period
of declining economic fundamentals. Ironically, by the time the worst year of
most economic recessions is reached, the stock market usually has already
discounted economic problems and has commenced a recovery phase. This pattern
appears to be unfolding at present, with very strong stock market recoveries
developing during a period of world wide recession.
Furthermore, the seeds of the world wide economic recovery have actually
been sown. These comprise very low interest rate, low energy prices, low metal
prices, the availability of cheap labour and in the US, the abundance of
inexpensive homes and commercial properties.
Due to the possibility of a Fall stock market correction, which often
occurs in September or October, Humboldt has decided to maintain its high
level of liquidity and at the time of writing, Humboldt's cash reserves were
in excess of $16 million, after the distribution of $3.0 million to its
Humboldt is in an enviable position, with a substantial cash balance to
be able to weather any market set back. In addition, Humboldt's Board has
strongly encouraged the management teams of its major holdings to be prepared
to modify their capital expenditure programs to maintain adequate medium-term
Humboldt is reviewing a great number of investment opportunities which,
due to the down turn, are much more attractively priced. Humboldt's focus will
be on companies with quality management teams with attractive prospects, and
the financial resources with which to continue their exploration.
Six Months Ended June 30
(Thousands, except per share amounts) 2009 2008 2007
Earnings (Loss) and comprehensive
income (loss) for the period $ 5,243 $ 4,506 $ (1,319)
Earnings (Loss) per share, basic
and diluted $ 0.43 $ 0.37 $ (0.11)
Dividend Paid $ 3,042 $ - $ -
Dividend Paid Per Share $ 0.25 $ - $ -
Share capital $ 2,035 $ 2,065 $ 2,080
Retained earnings $ 32,381 $ 57,518 $ 66,465
Shareholders' equity $ 35,757 $ 60,886 $ 69,543
Cash and cash equivalents $ 16,140 $ 19,009 $ 10,330
Shares outstanding 12,126 12,305 12,384
Net asset value per share, diluted $ 2.86 $ 4.78 $ 5.38
Further information regarding financial and operating results may be
obtained at www.sedar.com, where the Company's MD&A and financial statements
have been filed.
Forward-looking statements - the press release today contains
"forward-looking" information. Actual results could differ materially from the
conclusions, forecasts or projections in the forward-looking information.
Certain material factors and assumptions were applied in drawing the
conclusions or making the forecasts or projections as reflected in the
forward-looking information. Additional information about the material factors
that could cause actual results to differ materially from the conclusion,
forecast or projection in the forward-looking information and the material
factors or assumptions that were applied in drawing the conclusion or making
the forecast or projection as reflected in the forward-looking information is
contained in the press release.
Where amounts are expressed on a barrel of oil equivalent (boe) basis,
natural gas volumes have been converted to barrels of oil at six thousand
cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly
if used in isolation. A boe conversion of six thousand cubic feet per barrel
is based on an energy equivalency conversion method primarily applicable at
the burner tip and does not represent a value equivalency at the wellhead.
References to oil in this discussion include crude oil and natural gas liquids
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
For further information:
For further information: R.W. Lamond, Chairman of the Board - or - C.A.
(Tony) Teare, Executive Vice President, HUMBOLDT CAPITAL CORPORATION,
Telephone: (403) 269-9889, Fax: (403) 269-9890, TSX-V: HMB