freeeeedooomm!!!!!
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freeeeedooomm!!!!!
Not so.!!! As Heartland BANK were waiting for their banking licence,which was delayed,they put off their advertising blitz.Once this advertising blitz gets underway,every one will want to be on board.In the meantime, to keep the faith visit www.heartland.co.nz
Percy ... unless retailers have a decent estatline operated online shop they are dead eh
This is what is happening with banking
http://www.nzherald.co.nz/business/n...ectid=10860090
Maybe HNZ future is being niche ..... getting back to heartland roots and doing it the old fashioned way ... talking to people in branches ......stuff this wizardry internet stuff
What ever business you are in you need to be close to your customers,ie on line,on phone or if you want to be "really" close you follow Heartland's example and go to your customer.Heartland's man/men are at the saleyards where farmers are buying stock.Heartland is there,on the spot.! That is "really close". Old fashioned way,using latest technology.Yes HNZ are concentrating on niches.
Yip - just wait for marketing push. Still selling below NTA it is a bargain at present.
I just hope they have the technology all set up as there are lots of people that would like to move away from the Ozzie banks.
Is this train traveling on the Gisborne to Napier line or Vice versa
A great lot of comments. I shall retire to the mouse hole for a bit. But still counting on Percy to do the ramping. Plus, dont trust Possum the Cat. Even on the gravy train.
Trades have been pretty steady - 565K yesterday and 1m on one day earlier in the month and most other days 100/200K but there has been a solid wall at the 69/70c mark which has been hard to move. I see that the closing sellers yesterday are: 43K @ 68c, 492K @ 69c and 753K (down from 1.3m) @ 70c so the wall is coming down :).
I am a large holder of HNZ as I see their SP to be a bargain also (even more so when I bought most of mine at 54c!). Below NTA for a bank in one of the worlds most profitable banking markets, with good management and who is already making a growing profit which puts their SP at around $1* right now... you're mad if you don't buy them even at 70c I reckon. I think this year, if their marketing campaign is successful, they will prob top 40 million, giving them a SP in the $1.70 range but more importantly a solid divie! If they continue to perform, we could be looking at really good divies the next few years at least.
*Based on 6% return, 24 (million profit)/388 (million shares)
Which gives 6 cents per share, with a 50% dividend policy, which they could adopt, provides a 3 cent dividend. The dividend level is what will raise the share price. Plus the SP has to rise to enable HNZ to make a cash call. A Cash Call has to come to finance any expansion.
If they made 14% return on equity and didn't pay divies prob never need to raise any more cash .....double equity in 7 years ....pretty good eh
Surely reinvesting at 14% return is better than giving it back to shareholders in this early stage of growth
Why does an increased divie needed to raise the share price?
With 16%
YES 16%
and I will repeat, 16% equity ratio HNZ has a huge capacity to expand without raising further cash.
You will not find an institution in Australasia with a better equity ratio.
Also profitability will add to the 16% equity ratio.
Only requirement for further funds would be if they took over F&P Finance,in which case they would most probably do a placement to institutions.
People buy shares for either a dividend stream, or a capital gain. The present shareholders of HNZ had a dividend stream, particularly from Pyne Gould. Maybe we have to have a new lot of shareholders who are in it for a capital gain. They of course will buy at 50 cents, as I did for the majority of my HNZ shares. But the shares allocated from Pyne still make me a bit furious. The NZ sharemarket is a bit like the Wild West. In fact, it is the wild west. Unfortunately no sign of John Wayne, nor Tonto on the horizon.
[QUOTE=mouse;390660. But the shares allocated from Pyne still make me a bit furious. The NZ sharemarket is a bit like the Wild West. In fact, it is the wild west. Unfortunately no sign of John Wayne, nor Tonto on the horizon.[/QUOTE]
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Bit like the sharemarket crash of 1987. Learn,get over it, and move on.
HNZ is a very good company,building a bright future for New Zealanders,borrowers,lenders and shareholders.
The point is, Christchurch is a bit hot. Much better to sit at the computer than riding over the range, even with Tonto. Problem Percy is that the Pyne investors, and I was one at a fairly low price, have not got over it. They are waiting to sell. Plus CBS lot want to sell and joined by the Southern Cross lot. All of this is depressing the SP. How long it will be hot for in Christchurch, or how long it will take the unwilling holders of HNZ to divest themselves of the stock is a bit unknown.
When I price a company, I generally don't do it based on what they state as their divided policy, particularly if the company is in growth phase. Imagine Apples price over the past few years if all investors did that! I assume that any money that is not handed out as divies (particularly with financial instos) will go towards bigger divies later. As others have said @16% equity they are looking pretty hot in that department already plus their stated desire to become "a regular dividend payer", what more do you want?
I am a fresh investor in the company so don't have any bad feelings of previous mischief from when they were separate instos. If those that do want to mistakenly sell their shares for less than they are worth, thats not my problem. All it means is the SP will lag behind its real value for longer than it should.
Currently HNZ is offering some damn good deposit rates. My feeling is once these are advertised strongly it will result in more deposits, more money to loan, while maintaining their good equity position and returning higher profits.
I am always the optimist however I haven't seen any convincing arguments yet to dissuade me of said optimism.
Blobbles, the situation that people are not only thinking of selling below the assett backing of their shares, but are doing it in droves, is holding down the price. I think that anyone going in now will do well. At 50 cents investors got the shares at half price to assett backing. What we are seeing is an irrational reaction to past problems. So I actually think Percy is totally correct in his postings. However, he does not look like Tonto and may not even be able to ride a horse.