Way better than Bitcoin. You could include a link to HMY and drum us up some business.
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Way better than Bitcoin. You could include a link to HMY and drum us up some business.
https://www.nzx.com/announcements/389893
Looks interesting.
Yes, best word to describe is definitely- interesting!
Paying 13x earnings
This is a good way for HGH to get into asset finance in Aus. Provide cashflow lending to the farmer for their stock then fund the tractor and ute once they get the profile and payment history going
This excellent GARP stock can continue on its run for another decade by expanding in Aus
https://www.nzx.com/announcements/389893
Heartland to acquire livestock business in Australia
Minnow Alfred (ALF) are in the game of financing moomoos & sheeps too - aren't they ? ;)
I am sure you meant it has many decades of growth ahead of it. Yes that's an interesting acquisition and gives them a foothold for expansion with rural lending in Australia. HGH itself has a current year PE of 14.0 (eps of 16 cps forecast) and when one considers the steady growth and excellent net interest margins they enjoy as well as strong growth from reverse equity mortgages this looks like a compelling hold and is indeed a fine example of a classic GARP stock (Growth at a reasonable price).
Wonder if HGH have thoughts on taking out ALF ? ;)
just as well this Stockco only lends to asset rich farmers and don't get involved in the riff raff that we hear about that are driven off their farms in tough times by those distardly big Aussie banks
Did OK buying PGG Wrightson Finance 10 years ago
Interesting latest move
Say $12m extra profit = 2 cents per share
Should add 25 cents or more to share price in due course
Heartland not buying Stockco NZ?
This article says Heartland been funding Stockco NZ -- Heartland Bank also understands and has a relationship with StockCo through financing the operations of StockCo New Zealand for over 10 years.
https://www.beefcentral.com/news/nz-...kco-australia/
Thanks for the link mate. This bit is really interesting The transaction is expected to contribute additional annual net profit after tax of A$10 million to A$12 million, before any ongoing cost of acquisition debt funding. At this stage, given timing of the acquisition and the transaction costs, there is no change to Heartland’s market guidance for the financial year ending 30 June 2022 (FY2022).
Suppose they fund that acquisition at 4% before tax, about 3% after tax that suggests a funding cost of about $A5m and this acquisition could be earnings accretive by between $A5m - $A7M per annum, say $A6m = approx N.Z$6.4m = ~ 0.9 cps annual earnings. Applying HGH's very reasonable current year PE of 14 to that this suggests this is value accretive to HGH to the tune of 12.6 cps.
Upgraded my view on HGH to BUY on the back on this acquisition.
Sorry mate, I wasn't trying to undermine you, I didn't see your post before I posted. Could be a bit more depending on the price of funding and how it grows going forward and any operational synergies they can extract. Maybe ~ 20 cents extra value to HGH is not out of the question ?
Any way you slice and dice this its meaningfully earnings and value accretive for HGH shareholders.
"And Jeff will ensure its a success"
is that before or after a BIG DRY event....
suppose there is always insurance ...
why not buy an insurance firm?
Livestock?
oh dear ....
https://nullarborroadhouse.com.au/creatures-middle-nowhere-wildlife-nullarbor-plain/
About StockCo Australia
StockCo Australia was founded in Australia in 2014, but has origins in New Zealand dating back to
1995. The company provides livestock finance for cattle and sheep farmers across Australia,
primarily through its direct channel.
Like Heartland’s livestock lending solutions in New Zealand, StockCo Australia provides cashflow
solutions to customers who are typically asset rich, allowing them to purchase livestock, maximise
returns, and run their business more effectively.
" typically asset rich"
the economic farm surveys in NZ were a great stat report in the early 80's . Havnt read the Aussi version if there is one still published on the state of Aussi farming.
suppose one should seek it out and come up to speed.
Certainly HGH has performed. Sadly the PGC days have always stayed in the mind but not MR P's.
MR P has thus profited.
Up down or sideways the acquisition was about 1 cps eps accretive which has implications for enhanced future dividends. I have them on a FY23 gross forecasted yield of 8.5% and they have a long track record of steady dividend growth. To an income investor I think that's very attractive.
In answer to your tongue in cheek comment, I have a bid for more in the market at a slightly lower price so ask me if I care if they do drop a bit more :D
LOL I might get my 1 share as part of the herd @ $2.20 though lol
Only notable update - https://www.nzx.com/announcements/389893
Thanks! thegreatestben :t_up: Kiwi firms doing more business across the ditch..Interesting move\diversification!
New Chief risk officer looks highly credentialed. Excellent hire. https://www.nzx.com/announcements/390180
Strong moves today, could be on the way to 2.50 soon..
Jeff's my #1, very happy with HGH's performance and future prospects.
Good article, I like having both sides of the retiree coin covered via HGH and OCA :)
Gregg Jr. Probably a few less zeros on my shareholding.
Heartland raised their mortgage and other lending rates yet post OCR going up?
Heartland competing harder for deposit money now. Just noticed on www.interest.co.nz 1 year term deposit now 3.0%
90 day Notice saver 2.50%, 32 day notice saver 1.9%.
Thought this article may interest you heartland followers
https://www.afr.com/companies/financ...0220323-p5a74o
It is AFR paywalled. But, once you click, reload the page by hitting the little circular arrow by the URL and then very very quickly hitting Esc. That stops the script from loading, and you can view the article. You may have to do it like 5 times before it works until you become a seasoned pro, or just get a subscription as I eventually did. Or you can hit the x button on your phone while it is loading does the same thing.
Jest of the article is that deposits aren't as sensitive to interest rate rises as other wholesale methods of funding, and banks may be able to claw back some of their lost marketshare from fintechs who will have higher costs of funds going forward.
Yep well done moose ,took me six times though I was nearly ready for giving up on it .
I finally got it to work after 2 days and 20 try’s lol
So, do all your bludgers think that [the article proposition] is good for Heartland or not?
I've just received an email from Heartland Bank advising that the interest rate on Call deposits is increasing next week from 1.05% to $1.50% p.a.
I'm very much happier owning part of the bank than having cash on deposit with them.
Heartland does look after a bit of spare dosh for me though - the current Call rate at my main bank - ANZ - is 0.20%. Don't know why they bother really!
So Mr B its currently at $2.29 and the markets are slowly crumbling .. at what level would you back up the truck?
Will be interesting to see how far it retraces...probably makes sense for the stock to fall to its lows and get in as it bounces back on the way up ...
A lot depends upon your risk tolerance and timeframe for holding. I wouldn't describe the share price as slowly crumbling, you'd expect a down day today.
The TA isn't especially clear to me at this point in time. I remain a happy holder with a significant allocation. The recent acquisition will be eps accretive.
ANZ NZ profit up 18%
Hope HGH can beat that
June Balance date - FY result announced late August.
Had lunch with some mates that work at HGH a few weeks back. They reckon arrears across all portfolios are at record lows.
To my knowledge you get the same imputation as an NZ tax resident with both the NZX and ASX HGH shares. The Australians have many listed banks and finance companies to choose from and most pay dividends with franking credits (the aus version of imputation), HGH is probably not as compelling in comparison.
Everyone needs to find what suits them best in terms of portfolio allocation strategies. What's appropriate for me, a few years away from retirement may not suit someone a lot younger who's prepared to take a more risky approach. A few years back in my mid 50's I would sometimes go to 15% for a really high conviction position but these days I am more comfortable with a 10% maximum allocation and only go there for very high conviction stocks. Holdings vary depending on the level of conviction, for example OCA was 3.5% but was raised to 5% yesterday. Hope that helps.
Nobody has ever asked me that before so I am not sure on that one mate, sorry. I don't think its an effective strategy anyway because the main board listing for those two is here and the Aussie price will generally track the N.Z. price adjusted for the exchange rate. I think 99.99% of people wouldn't bother with that because all other things being equal, liquidity is never a bad thing.
For example in some classic valuation models I have seen over the years a paucity of liquidity needs to be rewarded with an extra 2% per annum return vs a stock with great liquidity.
Just a general clarification. Any shares of NZ companies traded as well on the ASX (or the other way around) are the same shares of the same company, i.e. the tax treatment is as well the same. However - your NZ return might look a bit different, given that you need to declare foreign dividends in a different form than domestic dividends. Bottom line (i.e. tax you need to pay) however should not change (but potentially some rounding errors due to exchange rates and similar).
You can as well transfer these shares through your broker (was for me free of charge, but it does cost you some paperwork) from ASX to NZX and vice versa. This might help to remedy any potential arbitration losses the low liquidity otherwise might cost you. Takes however time - i.e. no selling on the press of a button ... complete the form and wait some days.
Personally - I don't see any advantage of investing in the respective lower liquidity market but a possible arbitration gain (or loss) and more paper work.
New CEO for Heartland bank. Nabbed a Westpac exec. Good stuff.
Chris Flood moves up to group deputy CEO and will help old mate Jeff take over Aussie.
Endless growth ahead for HGH and they have a proven track record of growing. Great long term compounder. Hope to pick up a bunch sub $2 during the current storm
Rawz - do you really think we'll see sub $2? I'll be buying if we do get there but I have my doubts.
I have no idea. But wouldnt surprise me in this market.
During the covid crash it dropped from $1.80 to $0.90 a share.
Stop it you two. It's heading to the top of the loser board today.:ohmy:
How much of their book is even related to ag sector?
Yeah noticed that winner some big drops in some of those auctions too.
You’ve got to think outside the obvious …it’s not really about whether they have ag clients but the bigger picture.
Dairy prices are one of the lead indicators for general levels of economic activity ….and as Jeff has often said Heartland’s fortunes are closely tied to GDP (and employment)
one of the most ‘accurate’ economic forecasting models I’ve seen is one run by an investment manager called his 3 C’s Model ……inputs are Commodity Prices, Climate (soil moisture deficit) and Currency. Things are going to be good when the grass grows and producers are getting good prices and currency is favourable……and vice versa ."?like you’ve probably heard about the drought induced recessions NZ has every now and again.
Conjecture over on HMY thread that Heartland might have to face up to a $5m hit on their Harmoney investment when June numbers come out
HMY share price down 40% since December 31st when Heartland last did a fair value number