DRP at $1.77
Less than last time .....what’s going on?
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DRP at $1.77
Less than last time .....what’s going on?
www.chrislee.co.nz market news has more to say on UDC/HBL.
From my very uninformed view, it looks to me as though HBL are still interested,but not at the price ANZ wants.Float talk is possibly ANZ's attempt for a higher price.
Although UDC would be a great fit,HBL must buy it at an eps accretive price or walk away.HBL shareholders will not support a capital raise, should HBL agree to pay too much.
I do note HBL are achieving strong organic growth on their own,so the importance of UDC buy lessens daily.
Well I think we can now put to bed the notion that HBL is not growing. Haven't got through the interim report yet but have to say the growth in Australia with Senior Finance and its reverse mortgages is pretty spectacular.At the end of Sept 2017 they had 16.8% marketshare with reverse mortgages in Australia and 66% of TOTAL AUSTRALIAN GROWTH in reverse mortgages.
Also looks at first glance that other sectors, such as business and rural have had good growth, 12 & 17% respectively.
But must say I've only had time to quickly glance at the report but look forward to reading it all and hearing views over the weekend
forecasting profit at top end of what they initially forecast which is unsurprising and good
And that is why the share price has weakened recently - for it to stay at or over $2, it really needed an upgrade to profit guidance, not just hit at the top of it.
At a share price of $1.76, the PE is 14.4 - not terribly high - but well above that of the Australian banks. at a share price of $2, it was 16.4 - that is over 40% higher than say ANZ
But is HBL growing 40% faster? Half year results would indicate not and those guys who brought shares in the book build at $2.02 might not be so happy right now with losing 13% of their capital in just 3.5 months.
Need more talking about a profit upgrade to get the share price back winning again