Ain't going up and ain't going down
We're busy doin' nothin'
Workin' the whole day through
Tryin' to find lots of things not to do
We're busy goin' nowhere
Isn't it just a crime
We'd like to be unhappy, but
We never do have the time
One day HNZ will break out of it's current range and hopefully on the upside.
I can wait till then.
Best Wishes
Paper Tiger
The Heartland Story So Far
Quote:
Originally Posted by
winner69
Maybe this the overhang noodles talking about
I think noodles clarified his specific overhang of concern. But you are right Winner. If you look back far enough, there are more overhangs to consider.
Pyne Gould Corporation (PGC) used to control their rural arm Pyne Gould Guinness. Pyne Gould Guinness merged with Wrightsons to form PGG Wrightson, and the controlling 50% stake dropped to about 25%. Then Alan Lai and Agria came on board in two stages, leaving what was a strategic controlling stake in PGG to become an overhang of 12.5% in the new combined PGW. Except it wasn't an overhang because PGC were going to morph into a rural investment entity with the PGW stake just being the opening gambit. Until plans changed and George Kerr decided that investing in motorway service stops in the UK offered steadier future cashflows. The NZ currency appreciation and cessation of dividends from the UK then put paid to Kerr's UK expansion.
While this was happening the GFC came along and put the skids under PGC's Marac and other financial deals involving property. So the banks demanded PGC recapitalise, and the 'good bit' became Heartland. But then Heartland decided their difficult loans would be better handled in house after all, so bought those back off PGC. Somewhere in all that recapitalisation PGC had to sell both of their remaining stakes in HNZ and PGW at rock bottom prices. Meanwhile during the formation of Heartland, PGW wanted out of their "in house" finance division, but in a completely unrelated transaction (insert Tui billboard here) decided to pick up a small 3% share of HNZ who bought it, just to make sure they really did have enough money to operate properly. It was this 'significant' PGW stake in HNZ that was most recently sold off.
None of the entities mentioned so far have been flush of cash since the GFC. From my perspective there was a lot of passing the cash parcel around to get PGW, PGC, HNZ and Agria through their worst times. When companies go through these kind of restructurings, I don't know how those who come in late do for clarity. In some ways these situations might have been better resolved if a new company division had been set up specifically to rip small shareholders off. That would at least have put everything out in the open.
SNOOPY
Tomorrow is the Day After Today
Happy New Year Snoopy.
Don't bang Your Head against that Hard Copy for too long.
Best Wishes
Paper Tiger
But HNZ has security for nearly all their loans.
5/ The biggest problem I have with the Grade 6 to Grade 9 loans is that when you add them all up for FY2013 I get $265.683m.
SNOOPY[/QUOTE]
Snoopy your are right that Grade 6 to 9 loans add up to $265mil. But HNZ is likely to have more than $200mil of security for those loans so potential loss is only a fraction of the at risk loans.
Also some of the the secured assets might appreciate in todays economic climate therefore I see HNZ as a good investment at todays SP.
Was it worth it for CBS Canterbury?
All this argyle bargy about impaired loans begs the question;
Would CBS Canterbury shareholders have been better off to remain clear of MARAC and steer their own more prosaic course?
Boop boop de do
Marilyn
So much unsubstantiated bunk
Quote:
Originally Posted by
winner69
MA50 is 85 and MA200 is 83 so not much in it Percy
Just asking everybody to help out to make the new trajectory start sooner than later ....wouldn't want a death cross would we
Note: would need to see 83 or less for a while to see that death cross though. Best form of mitigating that is to stop it happening so c'mon buy buy buy
I personally feel that the use of arbitrary number such as 50 & 200 for average periods carries no significance what so ever.
If you want proper meaningful death crosses then your periods need to be prime numbers, such as 47 and 199*, and obviously you need to have your doom confirmed by either the eruption of your local volcano (if using exponential averages) or Snoopy finally reading the HNZ accounts correctly (for linear averages).
Best Wishes
Paper Tiger
*53 and 211 would be better for HNZ :)