Agree with every word Percy
No argument from me
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Percy (and others), you be close to doubling your money. Next week maybe
Two times 58 is 116 according to my calculator
Well done
Thank Winner69.
Been a great run so far.Yet I feel we are only now starting to see the results of the solid foundations that were put in place.
For someone like myself who put "retirement capital" into buying Heartland shares, the growing dividends will mean a lot more comfortable retirement for me and my wife.
I'm picking fully imputed divvy's of 7 cps this year Percy, maybe a little higher, 8 cps in my dream on EPS of 10 cps. Where you at with you're thinking on 2015 divvy's mate ?
Roger your starting to scare me the last time you sounded this evangelical was on the Sum and AirNZ threads :eek2: Disc-Makes up 6.5 % of my portfolio and wont go over 10%, oh at 88c buy price.
Yeah very keen mate. If it wasn't for Norah and Ebola we'd be rolling in it :cool: AIR doing okay now though, $2.35 if you add back in that monster divvy and special divvy they just paid out.
Yeah I started buying at 86 I think from memory. I've lost count of how many of these I've got now, that's scary coming from an accountant isn't it !!!
I suppose I should find some other horses to back but companies that are growing strongly, pay really decent fully imputed dividends and trade on really realistic PE multiples are not easy to find.
Remember your own 10% rule mate (Says the man who once had 30% of his potfolio in Chorus) ive sold half my AirNZ holding over the last week to bring it below the 10% mark as i see it as a fairly risky and volitile stock and one that could be affected easily by a number of events, i think you must be getting more reckless and myself more conservative, how ironic.
Banks have shown great capacity to pay increasing [large] dividends,so Heartland should be able to continue their history of doing the same.
With so many variables such as acquisitions,and capital measures, I will be more than happy with 7 cents,which would be near enough to a 17% increase on the 6 cents we have had this year.
With Heartland using these acquisitions and capital measures to increase ROE and EPS I am happy for them to retain a good % of profits to fund growth.
As an aside I have over a good number of years seen Ebos return capital to shareholders,and also come back to shareholders for more capital when they have required it for another acquisition.I do not see why Heartland can't do the same.Too much capital is lazy,and having to come back to shareholders for capital to fund an acquisition means they have to convince shareholders the acquisition is worth funding.
The Seniors tied up shares are able to be sold in April next year,so whether Heartland can buy them back under market price or not we will have to see.That would make good use of excess capital.
Motor Trade Finance.The results of the court case should be known shortly.Once the liability [if any] is known I would expect Heartland to make their move to acquire MTF.I think it would be a great deal for both parties.
Yeap mate I appreciate you reminding me of sensible allocation parameters. I must be close to 20% now but its a calculated risk and one based on a real dearth of other fair value opportunities on the NZX. HNZ is extremely well supported by very attractive fundamentals, trading on forward PE based on consensus analyst forecasts of 9.95 cents of only 11 times 2015 earnings. Gross divvy's I agree with Percy's comment below we're looking at 7 cps fully imputed, (7/0.72) = 9.72 cps gross for a gross divvy yield of 8.8% even on $1.10 SP. Its a stable business with a good capital base with an excellent outlook. Still cheap by regional small bank comparatives in Australia. I agree that AIR is in a different risk category so although I added some more recently at $2.13 to the other lot I bought back at $2.025 its only 7.3% of my portfolio value and won't be increased. Its nice to see you being more conservative mate, well done.
Well thought out comment mate, appreciate it.
A cartoon from interest.co.nz yesterday (bastardised of course)
http://www.interest.co.nz/opinion/73...out-why-it-the
One of the features of the recent profit announcements of the big 4 banks increased profitability in nz was their being able to reduce impairment provisions, ie less bad and overdue debt.
Jeez, I hadn't factored that sort of stuff in to my Hnz profit forecast for this year
Heartland sure is in a sweet spot at the moment
Sure are mate. Its been a big 3 weeks since the ASM with the SP up from $1.01 to $1.10. Market is starting to wake up to the official forecast being VERY conservative.
KCF010 - Here's an example of what HNZ could do to bolster its ROE. Kiwibank issued capital notes that I presume meet the Reserve Bank's requirements for capital at 6.61%.
The current super low interest rate environment provides an ideal opportunity for HNZ to follow suit. Note this $100m tranche issued at 6.61% currently trades at well under 6%.
Looking through the NZDX market this morning there's nothing of substance there paying more than 6% so I reckon they could get a long term issue away, say $100m at very close to 6% and then do a buy-back of shares !! Get on to it I reckon.
P.S. Yes, confirmed to meet Basel 111 capital requirements, currently trading at only 5.75%.
Percy, you know management well, do you want to get on to sending them an e.mail and suggesting this.
Here's the original media release
HNZ don't need to re-invent the wheel here, just copy it at say 6.25% and I reckon a $100m offer would fly out the door.Quote:
GENERAL: KCF: Kiwi Capital Funding Limited announces Capital Note offer 08:57a.m.
KCF
05/05/2014 08:57
GENERAL
REL: 0857 HRS Kiwi Capital Funding Limited
GENERAL: KCF: Kiwi Capital Funding Limited announces Capital Note offer
MEDIA RELEASE
5 May 2014
KIWI CAPITAL FUNDING LIMITED ANNOUNCES CAPITAL NOTE OFFER
Kiwi Capital Funding Limited (KCFL) has today announced an offer of up to
$100 million of unsecured subordinated Capital Notes to the New Zealand
public. Proceeds of the offer of Capital Notes will be used to invest in
convertible subordinated bonds to be issued by Kiwibank (a related company of
KCFL), which will help Kiwibank meet its regulatory capital requirements
under the Reserve Bank's Basel III framework.
The Capital Notes have a maturity date of 15 July 2024 but may be called, if
certain conditions are met, by KCFL from 15 July 2019 and earlier for tax or
regulatory reasons. The Capital Notes have a credit rating of BB+ from
Standard & Poor's, reflecting their subordination and loss absorption
features.
Interest is scheduled to be paid semi-annually on the Capital Notes.* The
Margin and interest rate for the first five years until 15 July 2019 will be
set following a bookbuild on Wednesday 14 May 2014 and announced on or before
the Opening Date.
The Offer is expected to open on Thursday 15 May 2014 and close on Tuesday 3
June 2014 at 5pm. Interested investors should contact one of the Joint Lead
Managers to the offer (listed below) or their usual financial adviser to
request a copy of KCFL's Investment Statement for the Capital Notes.
Kiwibank has a higher credit rating and an implied govt guarantee (despite explicit statements from the govt) but I do agree. As their credit rating improves, as it has been, their cost of funds should drop, increasing their returns.