Touche.........................haha love it!
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Suggestions please on how the Fonterra saga will play out.
My view is a reduction next year in the payout to farmers, following on from this year of drought.
Which will result in farmers needing a bit of finance.
Better word the letter very well else the small shareholders might get the impression they are not wanted
There's an awful man who wants to steak your shares but we know you don't really want to sell them but anyway let us buy them anyway a a fair ( but hugely discounted) price because we are good guys. Wil they wonder if they are being conned again? What's the trap?
Might be a proactive exercise but just doesn't seem to send the right message to shareholders.
Good god ....documents hardly plain English are they?
I think the letter is worded rather well, and no they are not buying them at a hugely discounted price.
HNZ are not buying the shares. Rather they are pooling them and placing them on the market so the shareholder avoids brokerage fees.Quote:
The price per Share which you will receive for your Shares will be determined by dividing the total proceeds of the Shares sold under the Plan on the day on which your Shares are sold by the total number of Shares sold under the Plan on that day.
Yeah I got that bit but after being bombarded with unsolicited offers to steal your shares here is another unsolicited offer to take the shares off your hands ...at market price.
The hugely undervalued comment was winding Percy up.
So mrs jones thinks she needs to accept this unsolicited offer because it has come from the company and is heaps mor official looking and gets hnz to broker the sale of them. In a few months time they go to 1 dollar ....mrs jones will not be happy will she ...when selling wasn't even on her mind.
Very Noble but the maximum of 10,000 seems a bit high. Brokerage costs are reasonably efficient at that level.
I guess it is hard to word the offer, without it being seen as investment advice. Hopefully one of the journo's picks this up and spins the appropriate slant on it.
Yes.
Minimum holding requirement is 500 per NZX rules (can be force to sell if under that) so that should clearly be covered.
At current shareprice (86c) if they had set the maximum at 5000 shares, that would be $4,300. That is probably the right level.
Setting it at 10,000 means those who hold upto $8,600 worth. That can be sold for less than $60 (ASB telephone rate) and even lower if they have an internet broking account.
They have set the limit now so no point arguing where they should have set it (sorry for bringing up). Overall it is a positive thing and should clean up the bottom part of the register a bit.
I wonder why they have done it though - they aren't the first company to be targeted and no other company that has been has offered a similar scheme.
I also wonder since have obviously gone to some cost in doing this, whether they should have done a compulsory sale for those with less than 500 shares at the same time. (that would probably send the wrong message so can see why they didn't but from a practical perspective, is a missed opportunity).
Disc: Holding (10,000 shares incidentally)
Possibly Heartland is taking advantage of an opportunity to reduce the number of small shareholders, which no doubt cost the company.
Will hats off to HNZ,being proactive and doing the right thing to help small shareholders receive full value for their shares.
Good on you HNZ.
I commend Heartland for doing this. I think they are genuinely trying to protect smaller holders from these vultures. Unfortunately I think it will not work unless they send offers to the postal addresses of the affected shareholders as they are unlikely to be reading NZX announcements. If they were, they wouldn't be considering selling into the offers.
But furthermore, I think Heartland is the first listed company subjected to these offers, that actually stands up and sends a signal to the vultures that they are not going to get away with it without a fight, something the FMA should be doing with much more vigour.
It will be interesting to see how many accept. I assume they will be sold on-market so it could have an impact on the shareprice. Could be a bit of selling pressure:
Average turnover is under $200k per day.Quote:
As at June 30, 2012, some 4,747 shareholders owning 4.2 percent of the company held parcels smaller than 10,000 shares, according to Heartland's annual report. At today's price of 86 cents, that's about, and implies broking fees of some $140,000 at $30 per transaction.Quote:
$14.2 million of shares
Head of treasury and strategy Craig Stephen said about 4.6 percent was held in the qualifying parcels.
Now you have me going around in circles. A share buyback as a prelude to capital raising? Isnt that just taking from peter etc. Dilution v undilution. One way of cleaning up the register I suppose and stopping shares being accumulated cheaply from the uninformed but a lot of paperwork one would have thought.
Nearly 5000 unsolicited envelopes going out .....and nz post is complaining about less things being posted
I find it interesting that the plan notice declares the period for participation by eligible willing sellers to be 12 August to 31 October. And that the plan document provides a cooling off period of 10 days between receipt of a punter's request to sell and the selling being undertaken. If HNZ is to pay a final dividend, the participation period will see some of the shares to be sold becoming cum dividend and/or going ex dividend and some of those going ex dividend will be subject to the dividend reinvestment plan. The plan document seems to be silent as to how these interim events are to be coped with. Let alone a rights issue.
It would be absurd should an eligible participant sell all of a modest holding, only to receive a handful of shares through the DRP because the sale took place after the shares went XD.
I was going to wait for the price to hit 90c but, being one of the small investors this is aimed at, I might take the them up ion their buy back offer.
Broker fees are a DISGRACE!!!!!!!!!!!!!!!!!!!!!!!!!!!! (Lands on knees screaming whilst raising arms to rapidly spiraling away camera).
Yesterday's closing price was 0.85, broker fees at ASB are $30 - so if you have 600 shares or less you should take them up on the offer...any more and you are better off waiting for the price to hit 0.90c
A dollar by the end of the year looks possible!
I think possible is the wrong word.
Surely the correct word you were looking to use is "PROBABLE"!!!! lol.
And we will look forward to a divie as well.
Nice people at HNZ doing wonderful things.!!!
A dollar is Possible mouse.. Percy is probably correct. Although I personally will not be disappointed if it only gets to 0.99 by years end.
For now..
Expecting and will receive, greater things in Y14. :-)))
Well perhaps, but all will be revealed on Monday August 25th.
In the meantime though, I thought you might be interested in the part of FY2013 report for Heartland that has already been released. You have to do a bit of sniffing around to find it, which is where being a beagle is very useful.
In the PGW accounts for the year, go to the segmental results section (p12) and look at the referred to break down of 'Other Agriservices' (p13). There you will find a heading 'Finance Commissions'. That is the kickback payment from Heartland for all of the rural loan business that PGW has funneled Heartlands way.
At first glance it looks good, with $660k of commissions paid to PGW in FY2013 verses only $591k for FY2012. However, you have to bear in mind that this commission arrangement only started on 1st September during FY2012, which was when PGW finance business was acquired by Heartland. Thus the $591k only covered 10 months. On an annualized basis, using a factor of 12/10, I calculate the comparable figure for FY2012 as $709k. If that figure is accurate it indicates that Heartland's rural loan book has probably declined by 7% over the year. I would argue that given what the rural community went through this year, a 7% decline in the loan book isn't a bad result. However, it does indicate to me that here is absolutely no hurry to accumulate Heartland shares until we see by how much the business overall did shrink on a 'like for like' basis.
Shrinkage is not always bad. I will be very interested to read by how much those bad property loans have declined. Once everything has been through the Auditors wash, we will finally know how tight overall that Heartland business t-shirt has become for the shareholders.
SNOOPY
Bye the bye im a happy shareholder; i will be happier when i actually see a customer in Heartlands in Tauranga which i walk past re every 2nd day.
Reckon they will surprise nicely when they report, I'm expecting re-rating toward $1.00 yield will support that price.
I am not expecting a great deal this year,however next year will be a cracker.I am looking forward to the agm where /when I think we will be updated on their $36 -$37mil projected profit for year ended 30/6/2014 .
The agm is being held at The Addington Raceway at 3pm on Friday 1st November 2013.
Small shareholders will need big letter boxes .....all that mail pleading to take their shares off their hands.
I love it
Funny if they send them all back full of excrement ....isn't that the response we suggested
One paper quoted hnz man as saying whimp has made more than 1/2 mill from these activities
Hopefully Heartland's offer to help/organise the sale at market price of small shareholders shares,will be taken up by other companies,so the Bernard Wimps of this world will be put out of business,or find it a lot harder to get away with their distasteful practices.
Percy and all, .....Heartland must run a pretty tight ship. Results as per below on Monday and no trades today !
Sign of good governance there I think.
Waiting with interest.
Cheer, RTM
Heartland New Zealand Limited (Heartland) (NZX:HNZ) intends to release its Preliminary Announcement in respect of its Full Year Results for the year ended 30 June 2013 prior to market opening on Monday, 26 August 2013.
The stars are aligned .... I think I saw a full moon as well ......everything is well positioned for a stunning result
The quick punt using the TAB money last time it all looked good only produced a little return .... It wasn't that stunning .....but this time it's all different eh
So 20k last Friday ......stunning result and will sell at over 90 later this week .....a nice boost the TAB play money coming up methinks ....might even pay for for the Melbourne Cup trip this year
Yippee ...ahead of expectations .....we are more than well positioned ....we are on fire
C'mon now .......well in excess of 90 please this week ......maybe a buck
Talking of hnz Percy ... I am still pissed off that your mate has not responded to 3 emails now. Never mind ....I know my place in the world ....a nobody ....but at least I thought he would have got his lackey to send. Stock standard reply
Hope not indicative of overall customer service ...starts at the top eh
Hey what's up ....the beloved and much touted NTA is going backwards ...now only 85 cents
Wasn't it Snoopy who said they were downsizing?
NTA have dropped below current shareprice as a result of the writedowns. From a financial result and forecast result point of view, there is no new information in the release. Boring really. I'd be surprised if the shareprice reacts to this release. Perhaps the dividend is a surprise?
I'll let Snoopy dissect the balance sheet.
Haven;t had a chance to thoroughly study the announcement yet but think you are right noodles, boring is the word. But that's exactly what we expect from HNZ, boring steady as she goes and at first glance, it looks like that's exactly what we are seeing and future looking good. I was expecting 2c divi so 2.5c, fully imputed and a surprising 2.5% discount on DRP is great news.
Just read the results and I can imagine how wide Percy's smile is. Great result for core business. Full year profit $6.9m in line with expectation and Adjusted NPAT $24.4 at the higher end of guidance $21 - $24m.
Page 19 not boring ......2014 profit going from $24m this year to $37m nest year
Future looking moosie.
That's a 54% increase ....go do an intrinsic valuation on that guys
Hnz on fire .....BUY BUY BUY
Yes I think Percy will be as pleased as the rest of us to see a 20% plus growth in Net Operating Income from both Rural and Business sector lending while home mortgages have been reduced. They continue to be clearly focused on the higher margin business as they've said they would and are achieving good results. No surprise announcement really which is what we expect from HNZ. I am very pleased with this result and will definitely partake in the DRP
I don't understand why not ? See below from the announcement.
"The directors of Heartland have resolved to pay a final dividend for the full year ended 30 June 2013 of 2.5 cents per share. This dividend will be paid on 4 October 2013 to shareholders on Heartland’s register as at 5.00pm on 20 September 2013 (the Record Date). This dividend will be fully imputed.
The Dividend Reinvestment Plan announced on 23 April 2013 (DRP) will be available, and a discount of 2.5% will apply (that is, the strike price under the DRP will be 97.5% of the volume weighted average sale price of Heartland shares over the 5 trading days following the Record Date)(7). Participation in the DRP is entirely optional, and shareholders wishing to participate should make a participation election in one of the ways specified in the DRP offer document. The last date of receipt for a participation election from a shareholder who wishes to participate in the DRP is 20 September 2013."
A further announcement has now clarified this - the DRP does apply.
I particularly like the earnings guidence for next year of NPAT $34 - 37m. This = earnings of 8.7 - 9.5cps. Say @ a PE of 12 a share price of $1.04 - $1.14 would be expected. Pick your own PE :D
The result confirms all is on course:
"The on-going growth of core assets,coupled with a continuing reduction in cost of funds,has positioned Heartland to deliver sustainable profitability in future years."
I think that statement sums it up correctly.
Sorry about that.!!!
Trying to remember how to work out the PEG.Then the better ratio is the PEG including divie.PEG + divie
Sure you can work them out for me,once you have done your buying..
Just hold off until I have picked up 10,000 at 87cents.Thank you.
Is it 18[pe] divided by growth 37 [or49] + 5 [divie]\
ie 18 divided by 42 = .42.
or 18 divided by 54 =.33.???
You can go ahead now CJ.Thanks for holding back.Brought 10,000 @87cents.Also been onto Link market services and elected full dividend reinvestment for my total holding. Did it on line.Wife likes the cash,so she will not go for it.
Results are out so time to have another look at those Heartland banking covenants.
Updating for the full year result FY2013. The EBIT figure is not in the financial statements. So I will use 'interest income' as an indicator for EBIT, once I have taken out the selling and administration costs
EBIT (high estimate) = $206.349m-$70.347m= $136.002m
Interest expense is listed as $110.895m.
So (EBIT)/(Interest Expense)= ($136.002)/($110.895)= 1.22 > 1.20
Result: PASS TEST, a significant improvement from the FY2012 position.
SNOOPY
Totally agree. It is the future earnings that should be driving the share price. The company has given nice forecasts for FY14. I believe a re-rating has yet to occur on this stock based on those future earnings. HNZ is one of the few NZX stocks that show some VALUE and GROWTH. (others I like are SKL, CMO, TUR)
DYOR
The underlying debt of the company according to the full year statement of financial position is: $33.673m+ $2.859m = $36.532m
To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:
$2,504.627m - ($2,010.376m +$58.287m + $165.223m) = $270.741m
We are then asked to remove the intangible assets from the equation as well:
$270.741m - $22.963m = $247.778m
Now we have the information needed to calculate the underlying company debt net of all their lending activities:
$36.532m/$247.778m= 14.7% < 90%
Result: PASS TEST
The position has improved significantly over the last year. Looks like the debt position has not worsened during the year because of all the deferred branch transformation expenditure that was shunted into the FY2013 year as I feared.
So we are all happy with the result, and the ShareChat site heads up as below.
Go figure !
Heartland FY profit slides 71 percent to $6.9 mln on charges to take distressed assets in-house.
http://www.sharechat.co.nz/article/3...s-in-househtml
Yep...can't argue with that !
Just an "interesting" headline and focus on a great report.
Just typical of the business commentary we too often get in the media. The headlines far too often do not represent the issue they are reporting on, just like this headline tells us very little about the real contents of the announcement. They had the same headline in the NZ Herald. Just lazy media.
Now we come to the most important page of the results announcement, our once a year window into asset quality. Looks like the reporting format has been changed, which makes year on year comparisons difficult. However, I read the total of the Grade 6 'monitor' assets to have increased from $185.315m to $198.370m. This is not a very good position to be in. I note on that same table there is a provision for collectively impaired assets of $15.961m which is up from $8.032m in FY2012. But that provision increase is not enough to cover the accompanying increase in 'monitor' assets.
Meanwhile the sum of Grade 7,8 and 9 assets is now $67.313m down from $80.927m, which is a positive. Overall though 'problem assets' (sum of grade 6,7,8 and 9) have increased slightly. I will have to take some time to think through how all this relates to the overall equity position of HNZ. But I was hoping for a bigger improvement in the doubtful loan book than this. I don't think I will be putting any money into HNZ based on this debt book result alone.
SNOOPY
Yes.
All of the above is what I was getting at.
An outfit called businessdesk.co.nz seem to produce these articles
Appear on shah at as well as the NBR
Spose everybody shares the stuff around
The Herald had the same story and headline
Stuff at least had a fairfax reporter write something
. Heartland Bank profit takes a hit
http://www.stuff.co.nz/business/indu...it-takes-a-hit
Not doing themselves or their readers any favours.
Bernard Whimp and other low-ballers will love the headlines.
Stuff reporting of the last agm was also a disgrace.
Makes me realise just how important sharetrader is for us all to get a full and better understanding of Heartland.
:rolleyes: The reporters say "Stay away from the forums" the forums say "You'll never understand by reading the papers".... I don't know what to think... if these shananigans continue I'll be forced to DYOR :crying:
http://www.nzherald.co.nz/business/n...ectid=11113397 "Don't do this"
Yes DYOR is the only way.Read,read,read to learn.Go to agms ,ask questions,ring the company if you want to know something.
I personally have learnt a great deal from sharetrader.I have not learnt a great deal from stuff's poor coverage of agms or results.Often they are days old and more than likely have wrong facts.
I wouldn't get too upset by today's press coverage. Market reaction demonstrates that most investors aren't fooled by superficial reporting.
But what would someone wanting to open a bank account think ? Would that headline stick in there mind ?
:) Thats me having a joke percy - I have met yourself, Karen (who is fantastic) and a few others out there at lunch a while back, Tauranga - that Karen was nice enough to arrange. Wouldn't make an investment based on what I read in the paper or what some mad hatter writes on a forum but they do act as (particularly in the case of sharetrader) a good point for further research. Myself I quite like sharetrader and generally find that once your a familiar viewer who has substance and who is more inclined to post for the sake of it.
Anyways apologies, promise my next post will contain content that furthers the HNZ value buy debate.
Somewhere in KPMG accountants are crying all over their abacus.
"What is the matter?" they are asked.
"Snoopy did not understand the Credit risk stuff in last years HNZ report, so we rejigged it a bit this year to help him and even added some extra notes in the Provision for impairment sub-section. We were sure he would get it this year. But look he has posted this. We don't know what else we can do!"
Best Wishes
Paper Tiger
Quote:
Originally Posted by The Grinch View Post
The reporters say "Stay away from the forums" the forums say "You'll never understand by reading the papers".... I don't know what to think... if these shananigans continue I'll be forced to DYOR
http://www.nzherald.co.nz/business/n...ectid=11113397 "Don't do this"
Must sign up (but probably have to pay to get his advice) to that guys (author) website
OMG watched one video and it just sounded like moosie .... support here and then support there and weekly setups and support here that held and support somewhere else that didn't and support went somewhere else but heck am I bullish on this etc etc etc
You missed your station in life moosie .... I can imagine you raving on like this guy
http://www.tradewithprecision.com/ma..._nick_mcdonald
Bye the bye i walk past Heartland Tauranga re every 2nd day at different times and i have NEVER seen a customer in there. Im still a happy shareholder btw.
That could be a very good sign - if it means the lenders are out at the customers premises arranging finance and mitigating a risks you do can not always pick up at an in the bank premises/on phone meeting. Also could point to great on line services on the transactional side which lowers costs.
If it is any consolation we have a Rabobank in town - I am the only person I have seen in there over many years apart from one somewhat disoriented and vague employee who emerged from a room deep in the bowels to confront the intruder. Look how successful they have been.:)
Headline in today's The Press;"Heartland eyes bright 2014."
A balanced article after that.
Even local broker Grant Williamson's comments were on the money.
Well done.[makes a nice change The Press and Williamson].
Oh I "get it" very well Paper Tiger. There has been a $24.3m charge taken in FY2013 against the bad property loans to allegedly put these to bed. Yet despite this, the value of loans in the 'monitor category and worse' is now:
$198.370m + $18.034m + $21.518m + $27.761m = $265.683m
Last year the number of loans in the 'monitor' and above category was
$185.315m + $53.360m + $14.096m + $13.471m = $266.242m
In other words those 'monitor+' debts have barely moved, despite all the restructuring. It is true that less of those debts are now in the higher risk 'substandard', 'doubtful' and 'at risk of loss categories'. But if that is really true, can you please explain why the provision for bad debts has jumped from $8.032m last year to $15.961m this year? Of course I don't expect you to be able to answer that question. But if I was a shareholder I would certainly ask that question of management at the AGM. However my vision of the upcoming AGM is largely unchanged. The lap dog shareholders will still be there wagging their little tails in the front row, while in the second row as somewhat larger animal swings their orange and black tail in sympathetic harmony.
SNOOPY
I see the capital raising program at Heartland has started in earnest. The Dividend Reinvestment Plan on the larger than expected dividend, should add to the sweat margin that Heartland has and will certainly be good for the company going forwards. Of course existing shareholders who don't take up the DRP will have their relative shareholding diluted, but that is one way to derisk your portfolio if you are overweight in Heartland shares.
The Heartland dividends past and present may be a good way to placate shareholders many of whom have come onto the register via the PGC train wreck. But have the 1.5c special and 2c interim dividend paid during FY2013 really benefited them? Since over the same period the net asset backing per share has reduced from 88c to 85c I would argue no. All the dividend has done is indirectly given shareholders their own capital back, but I guess calling it a dividend is enough to keep some shareholders happy. Mind you the IRD will be happy because they gained a tax rake off along the way at the expense of the company!
SNOOPY