Yes, good to see you got the joke!
Obviously it will be $1.60 well before Christmas ;)
(especially if dairy keeps turning around this rapidly, not to mention how well positioned HBL are in general of course)
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Heartland say they do well in good economic times (good GDP numbers)
Jeez - last week we've seen record new vehicle sales / wholesale trade up +4.4% / Truckometer back on track implying strong GDP numbers / NZD staying high / high commodity prices / ever increasing house values etc etc etc
GDP this year probably 4% - wow
No wonder Heartland share price heading to $2 - on back of record profits in excess of $60m (even Jeff won't be able to avoid an earnings upgrade before Xmas)
Global Dairy Prices up with solid increases in latest auction overnight
Generally positive for HBL share price
Just more good news
Yes "the stars are aligned" for Heartland Bank.
I do not know whether we will have any further announcements before the agm on the 22nd November or not.
I expect the agm will see Heartland give a full presentation of where they are,where they are headed, and how they are going to achieve their objectives.
No word from anyone on ANZ Bank's UDC sale.Would be a perfect fit for Heartland.
Maybe a further credit rating upgrade announcement?
In the meantime we will enjoy the lovely dividend,payable on my wife's birthday, and the solid share price.
Hard to believe the share price is still in the $1.50's really
NZ Herald this morning: Significant boost for dairy farmers
... should probably mean a significant boost for Heartland?
You'd think more and more and more confirmation of a rebounding dairy sector, with famers almost certain to be resonably above break even this season, would finally bump the share price over $1.60?
(on the basis that the dramatic jump in rural net impaired assets in FY16, of about $21m, will be reversed almost as quickly as they were added on)
Not that dairy is my main focus... we know Heartland is well positioned for so much more;)
Yes t_j and percy - earnings upgrade coming before ASM
Nearly 3 months into the new year and even Jeff won't be able to keep everything in the bottom drawer awaiting that rainy day.
See Coop Banking got a ratings upgrade the other day - jeez on that basis Heartland rating should have an A in front of it. Now c'mon winner don't get too excited,
Finally got some: Been trying to pull it down to 1.5 for the week, but chased it up to 1.54 last night and its been taken. Am ok about that as I think too November be interesting ;-)
I think it was an issue of moderate concern for HBL when milk prices fell as rapidly and as far as they did. It was never a make or break issue for HBL as they do have their eggs in many and varied baskets. Fast rising milk prices reduces that moderate concern again.
The main reason Heartland Bank share price fell so much because of dairying was because the market thought a] Heartland had a huge exposure to dairying,and b] the borrowers would default.
Neither were correct.
Whether some people see things that way could affect Heartland Bank's share price,yet analysts from the major broking houses have never seem dairying as a "major" issue to Heartland Bank.They correctly saw HBL had low exposure to dairying,and the loans had good security.We must remember HBL brought PGW's rural loan book,which was mainly sheep and beef farmers.
Relationship still exists t_j
HBL share price moving up faster than WMP is - not 'barely moved'
Interesting but a load of the old proverbial ....unless the populous relate Heartland to farming and as such dairy prices one way or the other have an affect on their profitability
Other things no doubt in play - like a market exuberance rerating most things upwards whether warranted or not.
One advantage of being small - you don't get the same scrutiny as the big banks. But industry behaviour might roll over to Heartland - if there is actually anything dodgy
http://www.interest.co.nz/rural-news...tification-and
Love the term forbearance - is that the same as putting off the day you need to face up to reality
Extract
"The topic for this year's thematic review is: "Problem loan identification, forbearance and provisioning practices in the dairy sector," the Reserve Bank says.
"Our objective is to better understand how banks are capturing and measuring dairy sector credit risk and how this translates into provisioning and forbearance practices. The review is limited to the industry's five largest dairy lenders [ANZ, ASB, BNZ, Rabobank and Westpac] and will require the banks to respond to a comprehensive questionnaire and provide supporting data."