Bonds attract a more conservative type investor generally(Yikes that was me a few years ago) Would have no effect on the share price although it does change the companies liabilities.
Printable View
And buying back shares good,especially with that pile of excessive capital being a drag on the balance sheet.
Buying back 10% of the shares would increase EPS by more than 1 cent and dividend should increase
Market uses same valuation ratios and just like that Heartland share worth 12/13 cents more. Yippee
If a buyback goes ahead my $1.40 becomes $1.50 plus
Depending on the size of the issue, it could have a significant affect on the share price.
A large issue means more funds available for the share buyback.
A share buyback will straight away improve ROE,EPS, and will result in HNZ having the capacity to increase the dividend further.
PS - 10% buyback needs just over $50m. Easy
On a more micro note, looks like the big sellers at $1.15 have stopped, I expect a nice lift over the coming week(s)
Yes do that to get an idea and a better understanding. It's all about financial engineering and capital efficiencies which also creates the illusion of greater wealth for shareholders. Main purpose though is probably to get management a bigger bonus
But never never read this
http://hussman.net/wmc/wmc150817.htm
https://nzx.com/companies/HNZ/announcements/268573 Commentary on Share buy-back and positive effect on EPS is included in the results presentation.
I just love this chart from the presentation
About $39m of the total expenses are people costs. They did go up $4m from the year before but I presume they inherited some Seniors people and probably gave everybody a pay rise as well.
What the chart says is that our employees are coping very well with all that growth in loans - good on them for achieving a bit more. Couldn't have been working at full capacity in the past if they can do this.
Keep at guys and gals - we want you to be busier still, so keep working your butts off.
Means a fair chunk of the additional income falls through to our pockets as shareholders - isn't that how its meant to work
That line will continue to fall - yippee
And as a bonus we get to save what we paid Michael
Saves a cool million bucks from memory doesn't it mate ?