Speaking of toxic the latest dairy price auction is a shocker:eek2:
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Speaking of toxic the latest dairy price auction is a shocker:eek2:
The link to this has already been posted on the correct thread.
Offmarket Discussions.Cows in calf etc.
You may find my post #19 on that thread interesting,as you can see who has been swimming without trunks on, as the tide goes out.
http://www.nzherald.co.nz/business/n...ectid=11481405
methinks HNZ will inevitably write off bad debt related to dairy sector in coming year. oops, post in wrong place.
Dairy prices contine to tumble, recession to hit heartland New Zealand
That's what I heard n the radio this morning
Must affect Heartland sometime, even if it is the downstream impacts
Most probably open up opportunities for Heartland, as the Australian Banks grapple with their huge NZ rural sector exposure.;
ANZ,$11.3 billion as @ 31-03-2015.
CBA has grown rural lending 10.3% in the year ended 31-03-2015,of which 73% is to dairy farms.
BNZ's agriculture exposure is $12.7 billion,of which 62% is the dairy sector.
I did post these figures on;Off Market Discussions.Cows etc yesterday.
I think I feel the winds of change.
Going the opposite direction so far today -or is just flexing the rubber band before it lets go and rushes towards $1.60+ ?
I have posted a reply on PGW thread.
What we must remember is PGW's total business is in the rural sector,while the rural sector is only a part of HNZ's.A very important part yes.Of HNZ rural sector business dairy sector makes up only a part of their lending.It is secured lending, with guarantees.
In post # 5583 I have pointed out which banks have the largest exposure.
I hold quite a few shares in Bank of America(BAC). Nearly everything I read indicates that when interest rates increase later in the year, BAC should do really well. I hope this is correct. I also have quite a few HNZ shares. In fact it is my biggest NZ holding. I am thinking that the lower interest rate environment that we are moving into is going to negatively impact HNZ over the next 12-18 months. I will continue to hold....although looking back should perhaps have lightened up a bit when they were around $1.40. Note: Also have some PGW.