Awwww hell! Thanks anyway winner.
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Being the bank with the lowest exposure to property, Heartland would not be affected as much by property market collapse as other banks,who are over committed to this sector.
I note in this morning's "The Press" article headed "Fonterra sinking millions into south";The dairy giant has set aside $150m for three new plants at its Edendale site in Southland and $72m to double mozzarella production at its Clandeboye site." "This comes after $500m was invested at its new dairy site in Darfield"."The outlook for arable,sheep and beef farming also looks positive,as does fruit exports.
So I don't see farmers going broke either.
Therefore , there is no reason to think the uptrend will change for a very long time,and HNZ's strong capital adequacy,and modest ratios will help it to be further upgraded, and able to react quickly to any further acquisition opportunities.
I may end up "holding forever."
When HNZ (or any bank) start talking about 13% ROE I sometimes go back to my old old fashioned values and think "hey 20% pretax return forever it has to be too good to be true"
Mr Ross was promising those sort of returns, too good to be true as some found out.
Relative to the traditional old fashioned way of doing things banks, inc HNZ, taking on too much risk and leverage these days. Just as well these days are different eh, and the older generation are just well say old fashioned.
Isn't ANZ at about 8% capital "adequacy" if you can call it that ? Not sure you can generalise and say HNZ taking on too much risk. 15% capital adequacy is very very good by international standards.
Its not like they're taking on 200:1 bets on the international derivatives markets like Lehman was, far from it.
The boards of Heartland took a lot of time and care laying the foundations for Heartland Bank.
They have taken on the "issues" of property loans.They have set targets which they have achieved.They have brought in people with special banking experience and skills.They are concentrating on profitable "niche" markets,where there is little or no competition from the major banks.
It is us on sharetrader who have set "too good to be true" projections.
From memory it is on pages 18 and 19 of the agm presentation where compare their ratios with other banks.Reading this one can see what sort of ratios Heartland want to achieve.They are on track,and with each "run on the board" we are seeing the market rerate Heartland.
Mr.Ross.Ran a Ponzi scheme.Heartland Bank have rating agencies and the Reserve Bank requirements they must adhere to.They are the only listed company [I think] that is answerable to the Reserve Bank.Maybe that makes them the safest listed company in NZ to invest in?
Don't get in tiz now Percy, you letting your emotional attachment to HNZ come outand jumping to conclusions
Read carefully, all I was saying that relative to the traditional old fashioned ways banks, inc HNZ, are taking more risks and are more leveraged than before.
Nothing more or nothing less. Just the way things are done these days, for good or worse nobody knows(yet)
As I added to my previous post Heartland by the fact they are answerable to The Reserve Bank may make them NZ's safest listed company to invest in.
I would think The Reserve Bank does not encourage "more risks,or more leverage" today.If anything I would think The Reserve Bank discourages it.
Have to agree. The company promises just another reasonable year and the financial analysts seem to generally agree with the companies predictions. Nice little earner, but nothing outrageous.
Its just some "bulls" around this thread who might create false expectations (particularly for Newbies) ...
The shares behind most (or all? - just a question of time) of the highly hyped sharetrader threads have a tendency to first rocket up and than crash down again. Just have a look at XRO, RAK, PEB, SUM, GEN, ... (in no particular order). Even the beloved RYM is now cheaper than it used to be a year ago.
Some of the above mentioned shares represent really good companies and nothing wrong in buying them at the right price (and I see HNZ as one of these companies). It is just that too much hype always drives the SP up a bit too high ... and as we all know: "what goes up, must come down again".
Discl: used to hold most of the above shares at some stage ... and sold some of them with a nice profit and others with a not so nice loss.