Percy - everybody having some shares cancelled - your 'share of the pie' stays the same - yes?
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Percy - everybody having some shares cancelled - your 'share of the pie' stays the same - yes?
Company owns banks = two sets of accounts to read
Company is bank = one set of accounts to read
If that does not double the share price then I will eat my lunch
Best Wishes
Paper Tiger
AIA bought back 10% of my shares last year. The price per share was decided before the buy back and it was less than the price per share when paid. I paid more to replace the shares but because there are less shares (by 10%) the share price increased. I'm a bit happy.
Market likes, I said last month great yield and the market doesn't seem to (may be now) realise the value of Harmoney stake and reverse mortgage growth potential.
Wiser, as in wisdom, or applied knowledge with good judgement? According to Rogers calculations (thanks) the market has already, and quickly priced in the EPS. Wise might have been buying instantly on the announce. I'll have to be satisfied just being more knowledgeable.
🤓
Fitch already response to HNZ amalgamation:
http://www.reuters.com/article/2015/11/06/idUSFit93916620151106#std9FsR0pvO5xSGk.97
Fitch: Heartland Bank's Restructure Credit Neutral
Heartland Bank is a bank.It is run be very experienced bankers,and has a board made up of people with proven business experience.
The business is based on money,the best use of money,borrowing at the best price,and lending at good margins to people who can repay their loans, and their interest.Heartland Bank must make sure they have diversified sources of funding and a diversified loan book.Heartland Bank must report quarterly to The Reserve Bank of NZ.It is subject to Fitch's Credit Ratings.The board of Heartland must make sure they keep their capital ratios right.
As we would expect HNZ have been doing all of these things.So it is only natural that HNZ look at themselves with "the owner's eye".[Directors and management are large shareholders].
They have seen that HNZ has too much capital and making use of "capital management" they can use a bond issue, and spare cash, to return the excess to shareholders,without weakening capital ratios.
They are only doing what they are experts at,banking and use of money.HNZ's EPS,ROE and capacity to increase dividends will improve with this capital return.
Should Heartland Bank need to raise funds for a large acquisition in a couple of years time,they will be well supported because the market knows they make great use of their capital.
HNZ are returning capital,while the Aussie Banks are raising capital.!!..I think that says it all.!
ps.www.scoop.co.nz and www.stuff.co.nz are both talking of $100mil return.I think they are right.$75mil from a bond issue and $25mil from "petty cash".
AND... What I specifically like about them is that they don't make rash aquisitions (except maybe Harmoney,but this may yet prove me wrong) They don't overpay or overstretch themselves in order to get what they want. The prudence shown over MTF is a good example.
This tells me that my capital invested in their shares is being nurtured.
Normally I am an impatient person wanting growth to happen quickly,but you can't beat a continuing steady increase over time.
I agree with you.They want to be the best bank,not the biggest.
Harmoney.I think if they had not taken a shareholding, we all would be disappointed in them, not being it that" new growing" sector.It looks to me HNZ have first right to pick the loans they want,so maybe it is very successful for HNZ.
And yes "you can't beat a continuing steady increase over time."