I get the impression some of them might be Ale drinkers too , Belgarion..................would'nt know what Chablis is!!
Printable View
The same system can be used to artifically ramp up the price of a share. At close of trade, buy enough to push the share up by a cent. So it is difficult to know what is happening. Investors are a bit funny, as in they cannot see what the other chap is doing. So making wrong decisions on the right information.
I'm not so sure this is a transaction which alienates him from the shares - looking at the date of the off-market trade (15 March 2013) it could just be a standard market value on the date transaction to the trust mentioned in the disclosure.
Trust accounting is a weird and wonderful beast and this transaction may not be indicative of an entry price.
Percy wrote on the PGW thread:
>
> I think it is just a case of manners .
> I always apologise when I have been wrong.
> The personal attack was very much against me on HNZ thread.
>
I think someone is mixing up a clash of opinions as a personal attack.
>
> HNZ directors and management told us they were engaging with The Reserve Bank for a banking licence,and it was not too far >away,while Snoopy would not listen,but chose to post that according to Reserve Bank Banking Licence application form it would be 3 >years.One phone call was all it would have taken him to check that out.Analyst ? Come on!
>
Percy, I took the reserve bank website at face value. If they said they required three years of accounts before they could confer a banking licence then who am I not to believe them? The fact that they seemingly ignored their own rules and granted Heartland a banking licence is up to them, and was an unexpected outcome to me. But I don't owe anyone an apology for the reserve bank changing their own rules!
If you want an apology you should ask the reserve bank to apologize to Heartland shareholders for having misleading information on their website.
>
> Much the same with HNZ's equity ratio.Analyst? No.
>
What you conveniently forget to mention Percy is that Heartland while having a satisfactory equity ratio in the strict sense compared to other banks it does not have the other tier one capital that the major banks have. On a full tier one capital comparative basis Heartland does not come out well. They are currently shrinking their loan book which is helping. But Heartland are far from safe from needing new capital. Indeed they will certainly take a hit to their capital if they sell off some more of their troubled loan portfolio at a discount as planned.
Furthermore the seasonal lending favoured by Heartland requires a higher capital ration than the mainstream banks. Another fact you keep forgetting to mention.
Thus the equity issues for Heartland are very much alive. It is head in the sand analysis to claim otherwise IMO
>
>Both of these grave errors of judgement could have influenced any one reading his posts.
>
And I hope they did. The position of Heartland is far more precarious than you claim it is. But I see little point in commenting further until more information is in the public domain. The half year report did not contain the information to make a judgment on how satisfactory the capital position of HNZ is. The full year report will tell the story. Frankly I would not put a dollar of my own investment capital into Heartland until either:
1/ A cash issue is announced
OR
2/ The full year accounts are announced
This always has been and remains my position.
SNOOPY
Just as well heartland BANK is a NZ bank ...like that Coop Bank .....they may need to wind up the NZ thing a bit soon as that other new BANK the Indian one apparently is about to wind up their presence in NZ
Do we overlook the competition ....or find out what they are up to?
Maybe snoops is a bit of both .... a generalist
On other threads (as well as on this thread) he has done both the homework and the balance sheet stuff. The SCT thread is a great example
As part of your homeworkists style do you ever talk to the competitors / suppliers / customers .... you get some interesting insights that way .... and sometimes make you wonder what planet the man in the c-suite is on which is a worry but then on the other hand if the feedback is in line with what the c-suite says maybe the c-suite is being reasonably honest and not just saying the good stuff
I asked my contact at Cooperative Bank what they thought of Heartland .... sorry percy I won't say because you told me off the other day
Why don't you start a Co-Op thread,so as any one who is interested can read about them.
May find yourself back to sending memos to yourself,again.!!! lol.
Coop think Heartland have done quite well and I sense that they have some respect for what they have achieved .... good eh .... and from I gather has/will make them compete more vigorously for retail deposits, esp for those investors who want to stay with NZ owned banks outside of Kiwi
Hope this has not tainted the HNZ thread seeing it so precious
Now, now Percy. That wasn't kind.
Actually, I am a bit worried about banks being so keen on lending on houses and land.
Spain is now rumoured to be planning a capital levy on land to pay for their bale-out. Say a 10% tax on the capital value of property. So that you get caught in the programme of 'helping out.' A country in this case. With problems following.
Plus it is property that made the banks broke recently. Why are banks who loan on property a better risk than those who, like Heartland, who loan on anything?
The ozzie banks are doing well. Hopefully this rubs off on Heartland.
I see that .ANZ doing very well,increasing divie too.
What I am awaiting is ANZ owned UDC's result,as I feel UDC is closer to Heartland than the Aussie banks.
I am also looking forward to a Macquarie Heartland presentation on the 9th May to be given by CEO Jeff Greenslade and CFO Craig Stephen.
Enjoyed a walk "down town" Tauranga this afternoon.
What a lovely place.Felt at home knowing there is a Heartland bank here.!!!!!
Percy, are you there? Or out of reach of the net?
Hope you enjoy the preso
Might be the impetus for the share price eh - like Kathmandu and Jbh took off after a macquaries preso ......then again FBU collapsed
So tell mr jeff to put his best suit on ...brokers love red ties ....have some really good powerpoint stuff with him ....above all else talk positive .....give a real profit figure for this year ....and make sure jeff looks them in the eye and smiles a lot .....no ums and aghs and ooze confidence,
.
Brokers / analysts hate being given the fingers and ignored ....give them a cuddle and they happy
I look forward to your detailed report on the 8th ....and watching the share price rocket to 90 cents.
Better than betting on its a dundeel ......so just for interest sake I going to buy 10 grand of shares on Monday .... And if the divie is better than 1.10 by Friday I cash up .....just like going to the races
Hi mouse.
Am enjoying the rain at Tairua.look forward to enjoying the rain in Thames tomorrow,and at Kawakawa bay on Monday.Then back to the cold on tuesday.
Should Heartland be silly enough to open [or reopen The Money Club ] in Sydenham I would sell my shares.
Too many people and businesses have moved out of the area.
The banks have moved to Barrington Mall.
Yes it is always informative going to these presentations.I have learnt a lot by going to agms,or anywhere where senior management speak.I am rather hoping Macquaries have a research report they give us.I ran into forest at Tauranga sharetraders get together.I first meet him at HNZ's agm.He goes to as many meetings as he can and is a wealth of knowledge.We are all very fortunate to have Sparky The Clown sharing with us his wealth of knowledge gained by talking to so many companies.I rather surprised myself with all the posts I posted from attending the agm,so I hope I may learn something new from thursday nights presentation.I am good friends with a retired bank manager who is a large HNZ shareholder,so hope to meet up with him and catch up with his thoughts.Better not wear my Postie woollie pullie on thursday night.
The volume of HNZ shares traded over the last few months has surprised me.With the steady progress they are making HNZ's future looks very bright.
Speaking of divies, what is everyones veiw on the DRiP?
No discount but am still thinking of signing up and partaking, at least while the SP is below NTA as it is a good way to let my shareholdings increase and the more money they have in the bank, the more money they can make.
Thoughts?
I think you are right,an excellent way of building your holding without paying broker fees ,and good for the company.I am disappointed there is no discount.
As I have taken a "good" position for both my wife and myself I will take cash divies.I don't intend buying more or selling any either.
no no percy ..... just a punt like the TAB
Money on tomorrow ... collect on Friday
Unlike the TAB at worst get all the cash back. This is taking a chance of losing a grand if Jeff doesn't smile enough and says its not going to plan (wouldn't turn up would he) or making 500-1000 if everybody salivates over his every word
Just for a bit of fun .... and to keep the brokers happy as their cut is almost as criminal as the TAB
Well I wouldn't do it.
Presentation is on Thursday night to retail investors,not intos.
No matter how bullish the preentation is, I would not expect it to "move the market."
Usually guests at these does are existing shareholders so can't see them rushing out on Friday to double their holding.They may add to their holdings over the next few weeks.
Should there be anything exciting announced, or Macquarie's have a very positive out look for HNZ, I will let you know before the market opens on Friday.
I am sure there will be no "new" news.
With the Dow well up on friday NZX should be up on Monday anyway.!
Well have just been downtown (Tga) and the front of the heartland store,very prominant position only has the word Heartland on the front still.How many people would know what this company did,very few out there in non investing land would have a clue what they did,it has absolutely no other signwork to tell you that you can put your money there,or even that they are a bank.
Perhaps they should get their act together on that front as it is free advertising space,Percy tell the man to put some bloody signage up,my gosh,in retail world thats just a sin. Suggestion for a new name Heartland Blank.
Mate I was across the road and never noticed it,it should be on the signwork of the frontage itself,hmmn I am part blind-and they need better point of sale.
I would think BIG part blind.!!!!! [I am sorry you have bad eyesight.]
The whole corner was Heartland.
A bold statement.
Huge sign on top of the building Heartland Bank.
I must admit I did not know Heartland had a Tauranga branch,and when I saw it I was taken aback.
I thought it looked fabulous.Impressed.
Yeah Percy, what will the missus say when she finds out you are looking at other signs when away on business........:p
whoops wrong thread
got the camera with me today percy and I see if I can take photo of Wellington branch
Think Heartland BANK dont wont customers to actually visit them ... their website doesn't seem to show where branches are physically located ... but I think I know where it is
Do all stuff over the phone and online .... saves heaps of costs eh .... bigger dividends
Now thats what I call a Bank sign PERCY, On the signage on the front of the premisis not on the the roof,after all surely it's people on the footpath that they want depositing and borrowing,not as they are flying past.
The local Heartland representitve who is "close to the customer"at stock sales yards would most probably disagree with you.
Marac has traded most successfully from very modest premises for years.
Heartland will be where, and avaliable where every, and however their customers want them.
If they give the customer what they want, Heartland will get what they want.Some things like great service don't change.
I see the presentation I am going to on Thursday night as further proof of Heartland keeping close to both investors and depositors.
The point I'm trying to make here,is that the other big banks are all household names,Heartland to most kiwis is new to the game,even though they have Marac.Surely a bit more recognition by the general public and their target market SME S would do them the power of good,otherwise why have prominent shop frontages in reasonable footpath count areas,hmmm.
Anyway I'm not going to convince you Percy as you are to HNZ what a manchester united fan is to their team,haha.
Agree they are not a household name but I dont think they want to be a mainstream bank, at this stage at least. They are trying to carve out a niche and (hopefully) those that are their target market know who they are and that they are a bank.
Terry Hall in the Dominion Post today has it that "Shareholders in fast-growing Heartland hope it will get a banking licence ....". I don't know whether that represents a failure to communicate by Heartland, or incompetence on the part of a has-been hack.
Yes I read that and thought where has he been - must have been out of the country!
A failure to communicate. We have to SHOUT BANK. BANK. BANK. And keep shouting.
Teaching. The method.
First, you tell them what you are going to tell them.
Then you tell them.
Then you TELL THEM AGAIN.
Heartland is a bank, not a motel or whatever.
But they should have a branch in Sydenham!
Percy, over to you. It is raining here.
To be fair I think the Heartland remark was a peripheral remark to the main thrust of the article, and that was how well the Oz banks have done for NZ shareholders.
I think the main reason that I, er I mean Terry, wrote that Heartland comment was to demonstrate that being declared a bank might not be enough any more.
In times past, putting money in the bank came with the presumption that at some point in the future the depositor could get that money out again. Then came bank fees, followed by corporate bankers borrowing the security of the Mum and Dad investor to make profits while leaving them to suffer the losses when really big corporate deals went bad. The problem as I see it is that the word 'bank' no longer necessarily implies the pillar of trust that existed in days of yore.
Graeme Wheeler granted Heartland a banking licence in his first week on the job. He apparently changed the bank licence application to do it rules, which as reserve bank governor he was entitled to do. But I have to ask did he also devalue the word 'bank' in the process? By their own admission Heartland do not attempt to go toe to toe with the big banks. Heartland outsources their foreign exchange offerings for example.
Heartland have their niche in machinery and farm financing, but how many people on the street really see them as bank? They still look to me more like a finance company with a bank sticker plastered on top. Their credit rating is well below that of the big Aussie banks, although I would point out it would be unreasonable to expect anything else.
The point is Heartland is not too big to fail. I concede that from a management perspective, Heartland are making a good fist of things, so far. But even a good climber is still vulnerable to an avalanche of bad debt. Good luck to all Heartland investors. I may join you one day. But first I intend to wait for another snowmelt, and all should be revealed in the Full Year annual accounts in the second half of the year.
SNOOPY
Bank will always mean something to me,an ordinary on the street kinda person,and although they may have a wee bit of a bad rap due mostly to the aussies fee greed,it still has an aura around it,I think that what goes around comes around,and eventually they will all be repected as such again.
'fast growing' in every sense is a comparative term. If you look at the Heartland FY2012 accounts in comparison with the FY2011 accounts, then yes they have grown. However in that time they absorbed PGG Wrightson finance. In comparing the size of Heartland, if you use the the sum total presence of "PGG Wrightson FY2011" + "Heartland FY2011" and compare that with "Heartland FY2012" (the apples with apples comparison IMO) then the collective "Heartland' is actually shrinking.
Of course I would argue that this is a good thing as it shores up Heartland's capital position. But to the faithful, pointing out that Heartland is not growing is heresy.
SNOOPY
Exactly, Heartland is a finance company with the added benefit of having some Reserve Bank supervision. Providing Heartland can stick to lending in areas where it has experience, then we should do well. Down here in Christchurch we have all sorts of heavy machinery breaking up the roads. Excellent business for Heartland. (With a branch in Sydenham).
Ooops .. Pass the Bi-carb please..
Snoopy is /was and is still factually wrong ,about the granting of the bank licence,and how long Wheeler had been in the job.
Growth in earnings is more important than growth of loan book.
Back on line at Auckland airport.No internet access at Beachcomber Motel Kawakawa Bay.Did enjoy my book.
Percy I would just like to acknowledge you as one of the "other posters" I refer to in my post 1243 on the RYM thread. So after a good night of celebration with my daughters, we say thank you :t_up:
Thank you Iceman.
I really enjoyed ready your post on Ryman thread.Like you I have learnt so much from Sauce and Sparky The Clown.I have also learnt from your excellent posts.
I think the advice Sparky gave you about the bach is good,and his concern about the values of shares at present,means we all should be very careful what if anything we buy.
So keeping a good amount of cash seems the prudent thing to do.
Well Sparky we have had a movement.!!!! Moved from "well positioned" to "poised".
Thank you Macquaries Christchurch for putting on the Heartland presentation.
The presentation was given by Craig Stephen HNZ's CFO.Jeff Greenslade did not attend because of a family bereavement.
Heartland are finding their niche in New Zealand productive sector,small businesses,rural sector and households.Staying away from mortgage wars,yet working in with other banks.ie a bank finds they have too much exposure to a rural customer HNZ will take over the livestock loan,working with Kiwi bank on mortgages .
Will open more branches,Timaru,Invercargil,Central Christchurch and looking for a stronger presence in Auckland.Sorry Mouse not Sydenham at this stage.
As Sparky has pointed out they are looking at growing more profitable lending,rather than growing their lending book.More than enough Capital.In fact too much capital,so I take it we may see a share buy back or a capital return.I enjoyed the presentation.Questions I had were answered in the presentation.
.
The non-core property; We can expect an announcement by the end of the month.A sale offcourse would free up capital.
Do not think there are to many fanatics on HNZ if any kizame..
Fanatics appear to not last long.. What ever happened to lazylarry ??
I really do hope that he proves us all wrong in the end ..
Most if not all on here have one goal, and are willing to suffer the slings and arrows of ridicule to attain that gaol..
Giving their good reasons and taking others good reasoning..
With SCOTTY's .. Response to Percy.. An " almost " Fanatic ( with good reason ) on HNZ.. I rest my case m'Lord..
Yes thanks for the report Percy , thats good stuff.
Snoopy, allow me to summarize the opinions of those who are in HNZ :
1. Growth for growth's sake is a bit like drinking for the sake of getting drunk - nothing can come good from it, save for a sore head or a busted liver years later. Just as bad as buying stuff non-stop just because it is on sale.
2. HNZ is doing it the right way - grow profitably and be patient. That is the correct strategy.
3. Capital is not an issue when you are profitable and demonstrate disciplined and profitable growth. There is unlimited capital available out there for banks when they show they are well managed and disciplined.
South Canterbury Finance and the other finance companies provide ample proof that growth (and size) are not everything.
If you go back far enough, the BNZ blew itself up twice growing for growth's sake - and BNZ had unlimited access to capital back in those days.
As has been written before, you are missing the big picture, Snoopy, by nitpicking on numbers.
HNZ is on the move and there's plenty more potential ahead. :D :D :D
George Kerr practically gifted his shares to everyone who bothered to buy less than a year ago at 52 cents!
28 cents gain plus 3.5 cents dividend = 60% gain.
Who says Georgie Porgie is not a nice guy?
Well CJ you will be pleased to see the price is touching 80c this morning so it is heading in the right direction. Didn't they say that a discount may be offered as a part of the scheme?
I'm thinking about doing a trade here. Only thing holding me back right now is the slight lack of depth on the buyer side. Anyone serious traders have any thoughts?
Growth is about leveraging the real estate and the people, and about minimizing the average cost of each transaction. Having said that I am not concerned that Heartland did not grow their revenues year on year. IMO getting the chaff dealt with is the more important focus for management.
Agreed.Quote:
2. HNZ is doing it the right way - grow profitably and be patient. That is the correct strategy.
I would take a different lesson from the South Canterbury Finance collapse. Even large lenders can face a capital crunch, and the market conditions that claimed South Canterbury finance have not moved on that much IMO. Pre GFC, there were plenty of finance companies that appeared highly profitable, yet shareholders still lost all of their money.Quote:
3. Capital is not an issue when you are profitable and demonstrate disciplined and profitable growth. There is unlimited capital available out there for banks when they show they are well managed and disciplined.
South Canterbury Finance and the other finance companies provide ample proof that growth (and size) are not everything.
I would go as far as to say that for any finance outfit outside the big six banks, profit is largely irrelevant for the survival of the company. I don't care what profit HNZ makes or is projected to make. Until those bad loans are sorted out, HNZ is just too great a risk for me, although I accept others have a different risk reward balance. All I know is that I didn't lose any money in the finance company collapses (because I was out of that part of the market) and I don't intend to lose any money in finance companies (even those with bank stickers all over them) going forwards either.
What you call nitpicking, I call preserving capital.Quote:
As has been written before, you are missing the big picture, Snoopy, by nitpicking on numbers.
Agreed. There is also plenty of downside risk from principally property loans going bad. I realise that my escaping the 'bad' risk I also escape the 'good' risk. But that is the investment path I choose to take.Quote:
HNZ is on the move and there's plenty more potential ahead.
SNOOPY
Putting your head out of the trench on this thread requires you to wear a helmet Xerof! At least someone else on this thread recognises the risks in HNZ though. I would hope that those SCF staff who have jumped to Heartland have learned their lessons. But given what has happened in the whole finance company sector, I see it as prudent to wait for more proof of this.
Not saying HNZ is a bad investment. Have never said that. One day I see myself on the share register. But not just yet....
SNOOPY
PS See you have pulled the post I quoted from already! It is tough in the trenches!
Hehe, yeah, I thought better of it Snoopdog, but you've outed part of my longer post, preserved for ever:sleep:
To be fair Sparky, (and it was before your time here), I was very bearish towards both PGC and HNZ when Kerr had his hand on the till(er). Not many listened....60 to 25, 88 to 35 and now back to 80
I am then on record endorsing Balances view that once Kerr had been forced out, "the fog over HNZ has lifted", however, personally, I would not be buying HNZ.
good on all those who did buy under 55.
I have always found your posts very constructive.Usually made me think,and I have always learnt from them.You always have your facts right.
I am very keen to see Heartland expand in Timaru.
Crops,dairying,farming,service industries make up the very strong economy of South Canterbury.
I therefore see it as the ideal place for Heartland to expand.
I maybe wrong, but I think it was Alan Hubbard's lending outside South Canterbury area that was the cause of the defaults.
Yep, there is a HUGE opportunity for someone to fill the old 'finance' company void left by all the failed entities, but the funding models need to change. Mum and Dad won't be back to the mezzanine finance sector in any hurry, and prime lenders terms would be inhospitable. Notice all the 'standby facilities' provided by major banks have largely evaporated.
this I believe is the reason we haven't seen major expansions by the likes of HNZ et al since the implosion; one they are gunshy; two, raising funds is not all that easy for them, and three, noone is prepared to borrow much on the 'new' terms (first mort, gsa, personal guarantee)
agree re Hubbard lending, I understand that virtually all of the new money raised under the Crown guarantee basically went straight down the gurgler to property development shysters, and of course to various related parties
Hubbard used SCF to feed his ego.
He was dishing out money like lollies at a kiddies' party. And he was enjoying the attention.
Others used Hubbard to feed their speculative activities.
The Crown was dumb enough to not see what kind of people were using their Crown guarantee.
Disc - I inherited shares via PGC, sold them a year or so go and bought back in this year with the intention to monitor closely/hold 2 - 3 years. Yes- feeling this way I probably should have bought further safer shares like RYM, SUM. But NZ needs lenders like HNZ and I want it to succeed.
When I sold it was because of being uncomfortable with the riskd involved with the type of lending HNZ is involved with and high level of experience/systems required to monitor the payment risk of those types of lending. Drawing from my experience/observations while working in maintream banks, a finance company and a factoring company, IMHO cashflow lending (against security of the assets NOT landed property) and invoice discounting require special skill sets to assess the initial facility application and very stringent/regular review processes to monitor the ongoing risk of the customer and in the case of Invoice Discounting the customer's debtor.
Why am I concerned that Heartland have not got the right people/processes in place? or for that matter any new "Finance Company" type of Bank:
1)Lack first mortgage security - there is usually no First Mortgage over property to fall back on if the lender gets it wrong
2) Lack of experienced lenders in NZ - In the last 10 years or so many New Rural/Relationship Manager's have not had come through ranks nor had the benefit of being an assistant to an experienced lender, instead they may have the degree, may have been an accountant or a great marketeer/networker. Within 1- 2 months (sometimes less) they start in the role face to face with the customer and their professional team (solicitor, accountant and do) while they are still coming to grips with Bank's policies, systems and a comprehensive understanding of Balance Sheets & Accounts, budgets and forecast cashflows. Vital warning flags which become second nature with experience are missed and they are too busy trying to keep on top of things to invest in time building up the skills.
3) Time constraints to undertake meaningful monitoring due to demand to grow the book - Regular monitoring/reviewing including customer visits and asking the right questions is vital - things can deterioate very quickly and can be masked e.g. bank account may be operating within arrangement but in fact it is being assisted by not paying creditors, contras, family loans etc rather than trading income
4) Main transactional account held at other bank -The first mortgagee lender often requires the main trading account to be held with them - this takes away the finance companies ability to review transactions to possibly pick up anomalies
I am not saying Heartland has not covered off all these risks but, again IMHO, the successful asset lenders/factoring companies which have been around for years and rode out the GFC concerntrate on a very narrow range of products with strict monitoring systems in place. They do not try to be a full service financial institution.
I hope/want HNZ to succeed, I believe very strong governance will be required and the higher interest/fees charged are set at a level to
fund the time required to monitor the loan book in both the good and bad times. It is often only in bad times that it becomes evident that monitoring/adherence to policies had become lax in the good times when the risks could have been mitigated earlier and more options are available to bank and customer.
Bonne vie.
You make valid points.
Speaking with Craig Stephen I learnt a lot.He said they {Marac} had less trouble with motor vehicle finance than HNZ had with mortgages on property.He said borrowers needed their car to get to work.This appeared to be more important than their house.[surprised me]
HNZ are not that keen to grow their book in areas they donot understand.Although they are a full financial institution I think they are concentrating very much on areas where they have experience.Lending on livestock would need careful monitoring.So I can't see many banks being in this space,so HNZ should do well.
New areas.At the agm Jeff Greenslade spoke of medical and education [school fees] as new areas they were looking at.Craig Stephen said they were still researching these areas.
HNZ like all lenders will have their defaults and problems,however I feel HNZ are being very careful in the direction they go.
Not "putting it on the house" means HNZ can charge more,however the risk for HNZ is as you point out, a great deal more for HNZ.
Factoring is a part of the market I did not ask about.
Marac lost PGC shareholders' funds through lending in an area they did not understand.[property development].
So I would think the lesson learnt is very much in HNZ's mind.
Many HNZ shareholders are from PGC. The split gave the perception that PGC was the high risk high return deal making arm, while Heartland became the relatively safe conservative banking arm.
This I believe is the most salient point. Neither Technical Analysis (looking at share price charts) , nor Fundamental Analysis (reading the annual report) will tell you if the staff processing the loans are up to it. And the share price going up a few cents, or the announcement of increased profits are not measures of staff competence either. All you can do is look for pointers, like the change in risk classification of some loans which is given in the annual report (but not the half year report).Quote:
Why am I concerned that Heartland have not got the right people/processes in place? or for that matter any new "Finance Company" type of Bank:
<snip>
2) Lack of experienced lenders in NZ - In the last 10 years or so many New Rural/Relationship Manager's have not had come through ranks nor had the benefit of being an assistant to an experienced lender, instead they may have the degree, may have been an accountant or a great marketeer/networker. Within 1- 2 months (sometimes less) they start in the role face to face with the customer and their professional team (solicitor, accountant and do) while they are still coming to grips with Bank's policies, systems and a comprehensive understanding of Balance Sheets & Accounts, budgets and forecast cashflows. Vital warning flags which become second nature with experience are missed and they are too busy trying to keep on top of things to invest in time building up the skills.
<snip>
One other thing you can do is look at the senior company management and see if there has been any turnover in senior management positions. Because sometimes that turnover can be reflected in unreported lower levels of management changes as well.
IMO to perform these functions, Heartland does not have to be a 'bank'.Quote:
I am not saying Heartland has not covered off all these risks but, again IMHO, the successful asset lenders/factoring companies which have been around for years and rode out the GFC concentrate on a very narrow range of products with strict monitoring systems in place. They do not try to be a full service financial institution.
I do too. And I think when the next rights issue comes up, that might be the time to invest and help them.Quote:
I hope/want HNZ to succeed,
SNOOPY