Originally Posted by
percy
At present I feel HNZ is the best value for money on the NZ market.It is trading at over 35% discount to NTA.
It has achieved a lot in a short time,getting approvals and merging three companies.It has successfully got through the Govt guarantee,and now looks to be getting on with the business on making money. From earlier posts you will note the high rate of return banks/finance companies earn.This means they can grow quickly.You will also note that bad loans/deals have been left at PGC or PGW.
Once we have seen good earnings we will see HNZ rerated.It will /could trade at two or three times NTA.ie $1.60 to $2.40.The recent announcement of ACC buying approx 10% means a lot of the risk is past us. Kerr's influence is gone.
On the downside low interest rates,and low demand for money could delay big profits.