Dairy prices flat of late (GDT results) - just like the Heartland share price
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Dairy prices flat of late (GDT results) - just like the Heartland share price
Price breaking through some resistances. Those dairy futures must be moving up are they winner?
this might not be good for heartland
Treasurer Josh Frydenberg to review Pensions Loan Scheme interest rate after 'gouging' allegations
Treasurer Josh Frydenberg will review the Government's reverse mortgage scheme to reflect Reserve Bank interest rates in the face of "gouging" claims from retirees.
https://www.abc.net.au/news/2019-10-...ction=business
if the govt scheme drops rates due to political pressure hgh probably be forced to match or they run the risk of losing business
https://www.heartland.co.nz/savings-...interest-rates
Gross yield on shares 9% at $1.62 assuming 10.5 cps fully imputed dividends for FY20. Important to invest on the right side of the ledger.
Strong spread of lending and funding.
Fast growing Reverse Equity Lending helps reduce risks, as does better quality motor vehicle lending,together with generally shorter lending terms.ie seasonal and livestock rural lending rather than rural mortgages.
Equity ratio is very close to The Reserve Bank of NZ's new proposed level.
Had a quick look at the comparative group I follow in Australia.
BEN, BOQ, NAB, ANZ, WBC and ANZ. Many of these banks have issues arising from the Australian banking enquiry and are inadequately capitalised for the pending RBNZ capital requirements.
HGH are much better capitalised, do not face any issues arising from said review, are growing faster and yet has a lower forward 2020 PE at 11.9 than any of them and is significantly cheaper than some. Forward PE of 11.9 is right toward the bottom end of its range in recent years of 11.0 - 17.0 and yet we have the lowest interest rates in 100 years which implies another 1 or 2 PE above the medium should apply.
My sense is HGH has been languishing below fair value pending clarification of the RBNZ's capital requirements which if I recall correctly are due to be announced some time next month ? Maybe there is some worry some of the Australian banks will list their NZ subsidiaries here ?
I don't think banks do well in a recession. The slightest sniff of trouble and the share price plummets, at least that's what happened last time. I guess no two recessions are the same and the last crisis was all about banks and liquidy. Still, I'm guessing that when a recession comes, banks will do a lot worse than other assets like dividend paying utilities for example.
I still hold HGH and some Australian banks directly for a grand total of 4% of my total financial assets. For me that's enough just at this stage.
HGH has been close to dead money over the last 12 months.
I very much enjoyed this presentation by David Rosenberg about how to be positioned during a recession and what gets hit and what does ok. You can cut straight to the 21 minute mark for the punchline but its worth watching the whole thing.
https://www.youtube.com/watch?v=afgvcwp__DY
Just for balance, I should also add that this excellent presentation, from Josh Brown, who you sometimes see on CNBC, which notes that more money is lost in trying to prepare for a recession than is actually lost in a recession. So that's why I still hold banks and some big cap miners directly and even drip feed into the Smartshares S&P US Growth Fund every week. It feels dirty and uncomfortable but this circus could still last for years so who knows. For the most part however, I'm going the David Rosenberg way.
https://www.youtube.com/watch?v=IQqw1S2U1yM
It has underperformed the NZX50 index by about 10% over the last year. Lot of value in the company at the current price and the gross yield is 8.5% - 9.0% depending upon one's assumptions of either 10 cps in annual fully imputed dividends or 10.5 cps. Interesting for medium term holders to note that the average analyst view is for 11 cps in fully imputed dividends in FY21 which put them on a gross prospective forward yield of 11 / 0.72 = 15.28 / 162 = 9.4%.
We might find out how safe and sustainable the utility yields are if Rio pulls the pin. Nothing is risk free and I believe Rio's announcement this week effectively blindsided the market and the gentailiers are in the process of being repriced after enjoying an exceptional run. My view is people have been busy preparing for a pending recession for most of 2019 and many REIT's and utility companies are priced like one is highly likely in 2020.
What if it doesn't happen, the US and China agree to some form of trade deal and its risk on and growth again ? Perhaps an overlooked and cheap stock like HGH enjoys a very good run in 2020 ? $1.90 - $2.00 a year from now not out of the question and would represent a PE of about 13.5 - 14.0 times FY21's forecast eps which is the middle of the PE range over the last 5 years or so.
Once HGH breaks through 170 it’ll be over 200 before we realise what’s happened
Then the smart ones can think about selling again
Did get overcooked on a forward PE of about 17.5 a few years back at the peak when it was $2.14.
17.5 times FY21's prospective earnings would see it at $2.45. Don't think its going that high anytime soon.
I don't think $2.00 is going to be overcooked this time round.
A 10.5 cent divie on earnings of 12.8 seems OK
At 2 bucks that’s still a awesome 7.3% gross yield ....better owning the bank than putting money in the bank eh, esp when interest rates are at 100 year lows
My sense is after a poor 2019, 2020 could be a "jack-a-box" 30-50% total shareholder return year for HGH.
Don't think anyone would have picked MEL to be up over 60% in the last year inclusive of dividends, (about 80% TSR if you take a reference point from a week ago before Rio went feral). Its been a wonderful performer but that's history now and all the risk appears to be to the downside. Got to find what's next, that's going to do a MEL. :)
Things building up nicely for NZ Cup Day at Addington. Looks like the All Stars team will again be dominant in NZ’s biggest race.
Exciting times
And on same day Jeff will say Heartland heading to $80m profit for the year ....before many will shoot off to Addington
No sure thing at Addington mate...but HGH on the other hand...
AGM in 2 weeks (November 12th, 10 am, Chateau on the Park) in Christchurch.
I don't see currently a lot of controversial issues, but plan to attend. If you can't make it yourself but have a burning question for board or management - let me know, happy to ask ...
Like they’ll deem Beagles questions irrelevant
Anyway can submit his questions in writing
Shareholder questions prior to the annual meeting
Shareholders present at the annual meeting will have the opportunity to ask questions during the meeting. If you cannot attend the annual meeting but would like to ask a question, you can submit a question by emailing shareholders@heartland.co.nz. Shareholder questions will need to be submittedby 5 November 2019.
Questions should relate to matters being addressed at the annual meeting.
And if Beagle really PC he’ll be asking in Te Reo
In an annual report (to shareholders I might add) of over 40 pages you know the culture is very strange when the financial review is confined to just 2 pages right down the back of the report like its some inconsequential matter. I think there's some overpaid executives with not enough to do other than to ram all things PC down everyone's throat. Its refreshing to read other annual reports and realise that other companies have a VASTLY more balanced, rational and objective view towards what it means to be inclusive.
Okay, I'll get off my soapbox now..its not good for my blood pressure anyway lol
Save the environment,read it online.
Heartland are one amongst several companies who split their annual reporting into 2 parts these days.
The Financials come in a 82 page package for Snoopy to misinterpret
and
the Review covers 48 page and is especially designed to give the likes of Beagle something to whinge about.
Dog's bark, its in their nature :p
Agreed.................................lol.
WOW ...good stuff
Kia Konfidence has a nice ring to it
http://nzx-prod-s7fsd7f98s.s3-websit...777/311205.pdf
It does but I wish they would drop the “K” and spell it the correct way. It wouldn’t change the impact or the “nice ring” but it would seem a heck of a lot more professional. I don’t understand why marketing companies feel the need to come up with gimmicky spelling.
They're into it with Holden too with Holden financial services, a division of, you guessed it, Heartland. https://www.heartland.co.nz/docs/hol...85435057238592
English uses the letter 'c' in a completely illogical way.
soft 'c' which would be better spelt with an 's' and hard 'c' which would be better spelt with a 'k'.
You only need a 'c' for words like church where the 'h' is then redundant.
And why, oh why, oh why must a 'q' be followed by 'u'?
Why does a 'g' appear where it is a 'j' sound so often?
Cough, though, thorough, same four letter ending but different sounds!
The ENGLISH KAN NOT SPELL !
As a shareholder in Heartland Bank and a supporter of the Kia Tigers baseball team, if this makes money they can spell it how they want as far as I am konserned.
Hence "ghoti" is pronounced "fish".....
"gh" as in rough, "o" as in women and "ti" as in station.
Fo-nettical spelling ov wordz iz kool. Nuff said. Is it any wonder kids find the English language difficult to learn, for example there's so many different ways to spell a simple word like paw. (poor, pour, pore).
Enny way...(sorry couldn't resist, back to normal spelling now), I hope HGH are pretty conservative with their residual value assumptions on European vehicles and / or are not wearing the risk of the residual guaranteed future value. Its hard enough to predict such things on value brands like Kia and Holden and near impossible with Eurpoean vehicles unless of course you use the value of 0 after 4 years (which won't in my experience be all that far from the truth) :)
Dairy prices up overnight
Heartland day at the races next Tuesday and good news of course (even if it’s just warm fuzzy stuff)
All looking good for share price in lead up to Xmas
they should’ve just hired a room at Addington for the ASM - logistically more efficient
Dairy prices and HGH share price inextricably linked eh mate :)
Time to find a big screen
http://nzx-prod-s7fsd7f98s.s3-websit...993/311467.pdf
Look forward to -
1) the response to Beagles written question
2) the embarrassed look of the the Directors when a shareholder thanks them for being Awesome
No point barking into a typhoon.
Well, I will be looking for an encouraging outlook from our great leader, the one I have pre-knighted as 'Sir Jeffrey Greenslade' (because all the heads of banks end up with that title anyway).
Many years into the future, when the history of this great country is rewritten, and when the stories of great New Zealanders of the past are retold, I expect one light that will shine brighter than most will be 'Sir Jeffrey'. There have been many New Zealanders who have taken on the world and won, but the first to stand at the top of the world - literally- was Sir Edmund Hillary.
No one can take away the achievements of Sir Ed. But greater than his ascent of Everest, was what he achieved for the Nepalese people. In particular there was the building of schools and hospitals, bringing standards of education and healthcare that otherwise were absent in this mountain country, which, up until then, had been seen as a playground for western adventurers. Yet underlying these achievements there were constant rumours of violence, not quelled by Sir Ed himself, when he hinted that on the way to the top he had "knocked some b*stard off".
Sir Jeffrey is not a mountaineer in the conventional sense. But there is no doubt he has helped hundreds of New Zealanders 'conquer their own Everests' by lending them money at critical stages while they developed their business ideas.
So when the Everest tally is done to enter the 'great gig in the sky', it will read 'Sir Jeffrey' - 'many' and Sir Ed 'one'. At the risk of Sir Ed choking on his Nepalese hot pot in the sky, there is no doubt whose contribution will be remembered as greater: Sir Jeffrey the multiple mountaineer, a modern hero who achieved without the violence of past eras.
Sir Jeffrey I salute you and look forward to your address on Tuesday. But in the meantime just keep on running Heartland the way you are doing it now: O.K?
SNOOPY
...whose real appreciation of Sir Jeffrey's achievements has only become clear since I have been a Heartland Group Holdings shareholder!
I never cease to wonder how you continue to get things wrong on this thread.
Wrong Jeff/Geoff.!
Be years away before Jeffery receives his knighthood,however Chairman Geoffrey's should not be too far away...lol.
Behind every great man is a woman or two
A few years ago Jeff was pretty awesome but he’s he’s got even more awesome since Ellie and Vanessa came on board to support him....to give him added inspiration and guide him through the path from being just awesome to even more awesome.
Interesting that both the Beagle's are shareholders but I think talk of tribute's is more than a little OTT since real eps growth in the last 2 years has been pretty muted.
I have noted many of the other Australian banks recently reporting have increased their provisioning for dairy farmers. This and the interesting culture I have previously commented on several times as well as the pending RBNZ capital requirements keeps my enthusiasm in check. I accordingly have a moderate sized holding that I am disinclined towards increasing and my rating is Hold.
With their agm on Tuesday, I will leave making any comments to after the agm,as HGH have a history of giving clear projections of where they see the year ahead, at these meetings.
You know Earnings to be around $80m and would be higher if they didn’t spend more on growing the loan book.
I can feel the excitement mounting already
Hope Geoff is all bright eyed and bushy tailed so early in the day ...if not he’d make me even more restless than usual
I'll leave it to others to enjoy their long Te Reo lesson by attending or watching the annual meeting online commencing at 10.00 a.m this morning.
I will skip to the outlook section of the shortly to be released meeting narrative...hopefully that's in a language I can understand.
No change in forecast... YAWN. Can't be bothered reading through the rest of it but did note that they are trying to boost return on equity so that's good.
One other point noted in my super brief skim read.... $617,000 on social welfare payments...hmmmmm
A 10 am start not for Geoff ...or his always this boring
Slightly disappointed they didn’t announce that Heartland Bank wasn’t being renamed Bank of Aotearoa
Would still fit well with HEARTLAND GROUP
Jeff gave a good talk on digital, CX and UX and things
If you haven’t already shouted yourself a mobile phone now could be a good time to start finding out how these things work.
All other in just over an hour ...quick chat to annoying shareholders and then off to thevreal business of the day
Geoff did mention ‘horses for courses’ so that’s a hint.
Overdue for a peer group comparison. I think we all know the Australian banks are grappling with issues and don't need to regurgitate all of them.
FY20 forwards PE's
BEN 13.9 Comment a no growth bank with eps in FY17 and FY18 higher than either the forecast for FY20 or FY21 !
BOQ 12.7 - Comment - same as above
ANZ 12.2 Comment - Crikey do they have issues on both sides of the Tasman or what !...which probably explains their low PE
NAB 13.4
WBC 13.1
CBA 16.2
Australian sector average 13.6
How does HGH compare. Has been growing eps steadily but somewhat frustratingly more slowly in recent years. Mid point of FY20 forecast is 78.5m which gives forcast eps of 13.59 cos and a forward FY20 PE of just 12.2.
I think their generally better track record of eps growth, better capital ratio and better earnings prospects should accord them a PE at least the same as the sector average in Australia, 13.6 which could see a rerating to 13.6 x 13.59 = $1.85 in early 2020.
Gross yield assuming 10.5 cos in fully imputed annual dividends for FY20 is 10.5 / 0.72 = 14.583 / 166 = 8.8%.
I think eps growth in FY21 will be stronger than FY20. Disc 5.3% portfolio allocation.
Another very positive agm .
Interesting to learn from HBL CEO, Chris Flood, after the meeting,how big, and how fast Kia NZ is growing.
REL's in Australia were 100% originated by brokers.Now down to 70% and expected to fall further as more people deal direct with HGH.
HGH/HBL are currently trading well.
Also positive is HGH's capacity to "adjust" HBL's equity ratio "at will" to suit The Reserve Bank of NZ's capital requirements.
Thanks for your feedback Percy. yes Kia as a value brand is growing very strongly in N.Z. See above PE comparison.
Where do you see a fair forward PE for HGH ? (Range has been 11-17.5 in recent years)
The Australian "Big Four" Banks remain pillars of the Australasian economy,and therefore have a greater acceptance from investors.
A friend of mine has had Westpac for years,and has decided to go out of his way to find funds for their capital raising.I am sure ANZ,and NAB will have the same support from their shareholders too.
This means the Australian Banks will trade at a higher PE ratio than small NZ Bank Group HGH.
So if you can buy HGH on the same sort of PE ratio as The Australian Banks,you can be assured you are finding excellent value.
I think a lot of retired investors are more interested in HGH's high fully imputed dividend.Earnings growth means HGH will be able to keep paying them,and will have the capacity to increase them.
Thinking years ahead,the huge growth HGH are achieving in Australia, may mean HGH will not be able to pay 100% fully imputed divies,however this will be off set by big increases in their SP.Australian investors will drive it looking for franking credits.
Thanks Percy. My observations over the years are that at times HGH has traded on metrics materially above the Aussie banks. That marks it out as reduce / sell. When its materially below like it is now I think its accumulate / buy. Only HGH gives full imputation credits. Once RBNZ clarifies their capital requirements I think that unless there is something in there that's commercially untenable this is due for a 10-15% jump. If I'm wrong and it stays where it is for the next year and we just get an 8.8% gross dividend yield that's not too harsh to endure is it :)
Nothing wrong with a banker being boring. In fact if you wanted to unseat Geoff from the board, your best chance would be to put up a candidate against him who is even more boring, and that would probably be a good thing! At least *I* was excited, getting to attend my first Heartland AGM. And for those of you who want the real oil, I won't keep you hanging until the report end. The club sammies, freshly baked scones and fruit sticks tasted really good.
I won't go over the actual results, all those graphs and things. You shareholders all know what the forecasts are. I could probably save the Heartland presentation team quite a bit of money by drawing up next years presentation slides right now. A simple linear extrapolation from this years slides should do it.
Jeff put in a good effort answering shareholders written questions, which were intelligently formulated. Australia was a big theme from the shareholder quizzers. The tide of baby boomers retiring is too hard to resist as a business opportunity. Jeff announced that Heartland's securitization facility was now up to a potential total of $1.05billion, which is quite a lift from the $650m maximum headroom at balance date. We were told the board just yesterday on top of this approved the issue of another $A100m of Aussie wholesale bonds, bringing potential funding from that source up to a total of $A150m. Plenty of capital available in the meantime for Australia, but will it last?
One shareholder noted that the Commonwealth Bank of Australia, a big funder of reverse mortgages in Australia stopped writing any new business at the start of 2019. (Following the exit from the reverse mortgage market by MacQuarie Bank and Westpac in 2017, this means there are no big Aussie player left doing reverse mortgages.) So how could Heartland be supported doing reverse mortgages as a customer going forwards, when their supporting bank, that underwrote most of the securitization, had pulled the plug on their own reverse mortgage product? Jeff replied that the regulatory requirements for Reverse Mortgages had tightened in Australia and it was no longer realistic for the big banks to have Reverse Mortgages as an 'add on' product at the branches. Heartland's more focussed approach of having reverse mortgage specialists at a call centre who only dealt with reverse mortgages and knew all the legal boxes to tick was the way forwards. He also added when prompted that the new wholesale securitized banking arrangements in Australia at Seniors Finance were CBA (as before) , Westpac and ME Bank (a branch-less digital bank owned by 26 of Australia's superannuation funds).
There was a question from the floor on climate change and whether fires, floods and the ocean re-grabbing the coastline could 'claim back' any of the equity that was underwriting the Reverse Mortgage loans. Jeff replied that all properties that had reverse mortgages taken out against them were require to be insured. He added that when writing Reverse Mortgages, they had largely stuck to the bigger cities in New South Wales, Victoria and South Queensland which had higher capital growth and didn't have the rural fire risk or coastal erosion risk.
There were questions from shareholders on the sub par return on equity (11.1% over FY2019) when compared with a benchmark return for Aussie listed banks of 11% to 15%. Jeff noted that excluding one offs the ROE for FY2019 was 11.7% and underlying ROE was up to 12.2% for the second half. Jeff said that one way to raise this ROE figure was to have a 'just in time' capital raising, as opposed to the old system of raising capital in one lump, then having to wait months or even years before it was fully deployed. Jeff said the new group structure allowed 'just in time capital raising' to happen. I am not sure I fully understand this comment. As Heartland Group Holdings shareholders, we still have to hold onto the capital until the subsidiary we call 'Heartland Bank' needs it. So although the ROE at Heartland Bank goes up, the ROE at Heartland Group Holdings, the compnay we hold shares in, does not under that scenario. Perhaps another shareholder who was there at he AGM can better interpret what Jeff said that I did?
Next Jeff produced an an ROE bar graph showing ROE on the different classes of loans. This showed car loans had by far the greatest return on equity. A question from the floor revealed that the delinquency rate for these loans was just 70 basis points or 0,7%. That low figure is probably explained by the fact that most of these loans were to new car buyers (JLR, Holden and Kia in particular). However there were no plans to extend this business category of loan into Australia. Jeff made a perhaps telling remark that car loans in Australia are 'different'.
Big Geoff pronounced Heartland well placed to meet any further Reserve Bank capital adequacy moves. Heartland already have a capital to loan ratio of 13.5% on the books. And the rumoured 15% requirement that may or may not be confirmed by the Reserve Bank in December would not be too difficult a stretch task to meet. A shareholder asked what the prospects were for 'credit upgrade'. Jeff said he was happy with the BBB rating they had and that there was no firm path to follow, as laid out by the rating agencies, to go to BBB+. He thought the best way to do this, comparing Heartland with financial institutions with higher ratings would probably be to just get bigger!
A shareholder complained that they had to go to Westpac to get out and deposit cash. Jeff explained that Heartland did not have the scale to process cash transactions at their own branches. He said that cash handling had been outsourced and that Heartland current account holders were actually now customers of Westpac. These Heartland cash accounts even had Westpac account codes!
Jeff's big push for the future will be in the digital space. In Heartland terms 'digital' is not about devices, even though millenials aged 17 to 36 now largely regard mobile devices as their sole tool with which to transact. Even Internet banking is old school' for this group. Digital in Heartland terms means being flexible.and it means being fast. This is where Heartland has an advantage. Their leaner meaner structure makes it easier for them to adapt. Today's big thing is tomorrow's old thing. Heartland must keep moving forwards. In this regard don't be surprised if Jeff is not at the lectern at AGM2020. What you will be seeing is a real world manifestation of the quantum theory based Heisenberg Uncertainty Principle. Just when you have located Jeff blink and he will suddenly vanish, having moved on to the next project.
SNOOPY
Good write up Snoopy, thanks mate.
Oustanding notes from Snoopy! Cheers ... saves me the job to try and decipher my handwritten notes ;);
Related to the funding of the Australian REL -
I thought Geoff was referring to the quite different funding model in Australia where they basically get their money by issuing capital notes to institutions and bundeling
securitisation of mortgages instead of increasing their capital by issuing shares or bonds through the stock market ...
This is something they can do quite flexible (on a monthly or even weekly schedule) and without the need to park any equity in the Heartland Group Holding.
One thing which sort of dawned to me during this AGM is that whenever they talk about "customer" they think about quite different and non overlapping customer groups. I suppose that their typical recipient of an Australian reverse mortgage (elderly, not digitally fluent and the process will take months and requires lots of legal advise) might have quite different needs and views related to a great "digital" experience" than e.g. the typical small business loan recipient (3 minutes at the mobile phone and you have your loan) or the typical Harmoney customer - or the B to B customer they talk with when providing their car loans. This makes the job of the people defining this experience quite challenging.
Ah yes - and one more impression from the AGM: I don't think I have ever seen an AGM with that many board members and senior managers sitting in a row (16 altogether). The fact that they did seat boys and girls alternating was probably not an accident ;); I noticed as well lots of younger faces (and not all "white"). This leadership team is clearly a great example for diversity.
If this company is at some stage not successful (which heaven might forbid - I am holding), than it certainly is not due to its lack of diversity of board and SMT.
Thanks Snoopy for a great report.
HGH is 17% of my portfolio so I must make a point of getting to the AGM next year - that's if Im not once again swanning around the world somewhere spending my lovely divvies.
Actually very good reports from you guys
Market listening ....share price on verge of getting into the 170s
Just spend time on page 16 of today's presentation.
Total Assets add up to 5.014 billion.
Superior assets ie ROE above 15% make up approx 28.5% of total assets.Growth rates between 13.3% and 48.2%
In line assets ie ROE between 11-15% make up approx 37.2% of total assets.Growth rates between 11.4% and 31.4%
Inferior assets ie ROE between 0 -11% make up approx 34.7% of total assets.Minus growth rates.
What this tells us is HGH are working hard to recycle inferior assets into either Superior assets, or In line assets.The amount involved is 1.740 billion.
This is where the improving ROE rate will come from.
Thanks BP, perhaps you are right and this is what Jeff was getting at. There are a couple of issues with your theory though.
1/ The first note issue to institutions by HGH in Australia raised $A50m in FY2019. Yet if you look at the share capital raised over FY2017 (being share issues plus the dividend plan reinvestment) it came to $50.991m and for FY2018 it was $71.726m (again shares). So the quantum of the main 'capital raising' (which were notes in FY2019) was actually very similar over the last three years. Furthermore the amount of capital notes approved for FY2020 is $100m. So that means the capital raising going forwards looks to be getting more lumpy, not less lumpy.
2/ As for the securitisation of loans, the dollar ceiling has certainly gone up and Heartland are now using three different banks for securitisung their loans, not just one. But in the annual report, we are only given the current total with no idea of how big the bundles that make up the total are, or what the timetable of their collection was. It could be that Heartland will in the future be using smaller loan bundles to securitise, consistent with smaller amounts of capital being raised to support those loans. That would certainly be more 'capital efficient'. But there is no reason that Heartland could not have done this from day 1. of securitisation. There is nothing new here that could not have been done originally that would necessarily affect capital efficiency in the updated securitisation arrangements.
The objective of the exercise is to make Heartland more capital efficient in line with other comparable listed banks. But rejigging of the capital used in Australia is now outside of the 'Heartland Bank' structure. IOW the bit being rejigged is no longer included within Heartland Bank, but is being used to make the return of Heartland more 'bank like', as it lines up with other banks. It seems to me to be that this 'adjustment of equity used' outside of bank structure is a disingenuous or even a dishonest adjustment to make in that comparative context.
SNOOPY
...............................................
Somebody offered you 20% pa guaranteed return forever you’d ask ‘sounds too good to be true, what’s the catch’
That’s what Heartland Group is offering
Like buying any asset the skill is in the buying.
That's where the big money is made.
Those of us who brought into HGH between 60 cents and a $1, are enjoying our successful investment,and our dividend yield on purchase price is outstanding.
"Time is the friend of any good investment".In HGH's case ,time is proving a great friend.
While it is true that well timed buying is crucial - it is only half of the story.
Buy and hold might be a valid strategy for some shares for certain time periods ... but there are not too many shares I can think about where it would have been a great strategy for ever ... and even "ever" would be only limited to the current date. Who knows what the future brings for these companies.
It is always a good idea to know when to get out as well.
Just check how many of the companies listed 25 years ago on the NZX are still around ... for all the others there would have been a good time to leave instead of waiting for their demise ;);
Didn't you own at some stage EVO - are you still holding? And one could argue that with TRA there would have been an amazing opportunity to sell well north of $3 ...
Ah well, we all make mistakes - but this is probably for a different thread - and just for clarity: I don't think that now would be a good idea to get out of HGH (though ... last year there was, even if it had at that stage still a different ticker).
https://stocknessmonster.com/announc...gh.nzx-344296/
I can't criticise Jeff for hanging about. On Tuesday at the AGM he announced an expansion of the $A bond program, with a proposal approved by the board to add an extra $100m. Less than 48 hours later the deal is done! I would like to shake Jeff's hand! But if I did that, I'd be fairly sure I would be left holding nothing but a glove and Jeff would have already disappeared on to his next appointment.
How does raising this new mortgage backing money in one huge lump tie in with the AGM assertion of 'just in time' financing though? Is Jeff really writing $A100m of new reverse mortgage business in Australia this week?
SNOOPY
Just in time had a very different meaning when it was to meet The Reserve Bank of NZ requirements for Heartland Bank.Think months.
Just in time for Heartland Bank today can mean HGH top up the bank's requirements possibly overnight.........................Think hours.
Just in time for HGH to meet lenders capital requirements,may mean months or possibly years.Think plenty of time for a rights issue if needed.
ps.I thought you did shake Jeff's hand,I did not notice you losing any body parts.!