They can try,but the part of Scotland I am from,not even the Jews can make a living!!. lol.
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Oyvey Percy my son.. Do not be so hard on yourself..
As a special offer to you.. I will take all of your useless HNZ shares at the very good price of..
Hmm..hmm.hmmmmm.. @.... No !!.. @... Hmmm.. Hmmmmmmmm...
My wife will kill me.. Hmm 41 cents... So much better than my Aussie cousin..
I take the bread from my childrens mouth to do it ..
Insert Tui ad..
Belgarion trembles :-))
I know your holding Perc.. you know mine.. Back slapping all around eh !!..
Seems to have stalled at 70c.
Anyone want to guess when the decision on the banking licence will come out?
To bank or not to bank, that is the question..
I have been looking at the deposit rates comparative website as accessed through sharechat.
http://www.depositrates.co.nz/
The 90 day rate at Heartland (rated BBB-) is 4.4% verses 3.25% for the major banks (rated AA-).
This is encouraging if you think what kind of on lending these funds will experience. It means that Heartland must have customers willing to borrow at a higher rate than the major banks. This is what Heartland needs to survive.
A banking licence may reduce borrowing costs in the medium term. But it is not a game breaker for Heartland IMO. What Heartland needs is more customers and more capital. The banking licence I see as a second line bonus.
SNOOPY
We are all waiting with 'baited breath".!!!!! The AGM has been put off until Nov 30th as they expect a decision in November.Whether we get an announcement before the AGM or not I do not know,however I would expect HNZ to make an announcement as soon as they know.
At least if it dooesn't get a banking license it will identify where Heartland is deficient. This wil provide certainty for the application next time. Therefore I am hoping that the downside if it misses out will be minimal....
On the upside, I would be interested to hear informed opinion about what a banking license is worth. The share price at the moment relfects the markets value of the company. How will a bank license change this? Perhaps growth in customers due to it no longer being considered as just another finance company? Does anyone have an estimate for the upside for the share price?
Well it would be a bit of a stretch to claim anything i say is 'informed' but my best guess is that a banking licence will allow Heartland to offer lower deposit rates to customers. As an example Co-Op Bank is offering between 4.1% to 4.8% over various terms, where as Heartland is offering 4.9% to 5.5%. Both have BBB- credit ratings.
My rough (very!!) numbers are that with about $2 billion in borrowing, so each 0.1% decrease in borrowing cost is worth $20m to Heartland. Given the approx 390 million shares, each 0.1% decrease in borrowing could be worth 5c per share.
So the question is, how much can they reduce their borrow costs by and how quickly can they do it?
I am told that the Cooperative Bank are more than pleased at the number of new customers they are pulling in with their current campaign ... pretty soft sell but that is probably what the potential punters like
Know a couple of largish worksites they have visited touting business and offering introductory deals
I wouldn't be surprised if they haven't taken some Heartland customers ... healthy competition eh
I wouldn't be surprised if they haven't taken some Heartland customers ... healthy competition eh[/QUOTE]
Yeah Right.!!!!??!!! lol.