SmartContent
Sep 4, 4:52 PM
$HGBL is a turnaround story now.
Heritage Global took a major Q2 hit after deciding to wind down Heritage Global Capital, including roughly
$21.7M of impairments and credit-loss provisions tied to the lending business.
The important part is what remains. The core auction, asset advisory and financial-asset businesses are still operating, adjusted EBITDA stayed positive, and management is shifting back toward the capital-light model that worked before the lending expansion.
The Boston Note acquisition also adds another small growth avenue without requiring a huge capital commitment.
The risk is that the lending cleanup is not finished or the remaining businesses fail to recover earnings.
At roughly 0.9x book and a sub-
$50M market cap,
$HGBL does not need explosive growth. It needs a few clean quarters proving the bad lending chapter is actually behind it.
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