And you don't have to stay in the desert for 40 years either :D
Was buying more mid last week at $1.63 as well. As pierre posted its nice to get a dividend on the new ones issued under the SPP at $1.46 too.
All adds up.
Printable View
Been in from the beginning... Regret having sold down from being in the top 150 shareholders ( purchased in the 50/60 cents range ) as it rose unbalancing the portfolio..
However... Still have enough arriving in the DRP to keep me smiling.. Will be thinking more than thrice before any more are up for sale..
Disc. Happy long term holder...
Thank you for the kind words.
I think in hindsight a number of us saw this was going to be a cracker.
Funny enough, the biggest giveaway was the sense of pride each director radiated at the agms,being a director of Heartland.There was no hidding it.It was still there at the last agm. I remember well, the then chairman Bruce Irvine, stating at an early agm, held in Ashburton, Heartland would receive their banking licence, shortly.An extrodinary statement,but offcourse he was right.At the same agm Jeff Greenslade spoke of getting their ROE up to 10% from about 3% within 3 years.And he did.!Since then Heartland have spoken in plain language ,what their objectives are.Happily for us they achieve what they set out to do.
The current share price indicates "the market" expects HBL to continue to produce "the goods."
I am sure they will.
And that is exactly what it is all about and has been for many years. They know what they are doing and they deliver the goods. What more can we ask for ? Have to admit though that for the first time in all those years I took the cash instead of the DRP. Mainly to use it for SUM to re-balance my portfolio a little
I see aJEFF GREENSLADE has a share in NELSON PARK racing at Counties today at 2.45pm.
Wonder if its HEARTLANDS chief.
Posted 16 March 2017, wherein I believe I made the case convincingly that on a relative basis fair value for HBL ex divvy was at least $1.73-1.76. Looks like coming to pass pretty soon, whereupon I'll revisit the relative value and update my assessment of fair value. In the meantime I'm a happy holder and see little merit in holding deposit money in the bank...might as well have your investment in the bank in equity !
[QUOTE=percy;658192]On its way to $2.00 the HBL share price will be $1.96 at 4.35 pm on Thursday 21st of September this year.
Unfortunately, we may then have to until mid morning on the 31st of January 2018. for it to go through $2.00.
Above Posted 08-03-2017.
With HBL's sp at $1.70 today, it looks as though that $1.96 and $2.00 are ontrack.
Maybe sooner than later?
Will HBL get to 2 bucks before EBO gets to 20 bucks
I've only been trading for a year but this is certainly my best performing stock. Bought in at $1.18 and it's been up ever since with little to no turbulence (unlike my AIR holding!). Thanks Percy and Roger for helping me ignore Snoopy's pessimism in this one :D Winner your faith in $1.60 by Christmas last year also helped!
Yeah I can't believe I had so much cash sitting in an account earning 3.5% p.a. when investing in HBL was a way more lucrative option.
I am probably going to regret this post, but today was the day I sold out of HBL.
At just after 2pm today my sell order was executed at $1.71.
In about 20 months, I had made a very good return, and have enjoyed being on the Heartland train during this period, but I believe, in the short term, there is now more chance of the share price going down, than what there is of it going up.
I also will likely (ie not 100% sure yet) require funds for another upcoming IPO ;), which, depending on the price, I believe will give a higher return than HBL, at least in the short term.
It is likely one day I will be back on the HBL train, and I will be watching with interest.
It is likely I may also consider SUM other investments as well.
Since posting this on 16 March 2017 the basket of 5 comparative banks I follow in Australia has increased by 3.8% and I therefore have lifted my valuation which h is based on my assessment of a fair PE relative to the Aussie banks by a commensurate amount $1.76 x 1.038 = $1.83. When it gets to $1.83 I'll reassess again.
The amazing run and rerating of Heartland continues
A rerating of ginormous proportions - I would hazard a guess we have never been seen such a rerating before of a finance stock on the NZX (or even the ASX or maybe even the whole world)
Price Book multiple is many analysts preferred multiple.
Since last June Heartland Book Value has increased by a miserly 4% odd but the share price has increased more than 40%. Heartland on a PB currently of about 1.6. What it looks like on a chart is below.
If Heartland was still trading on the same multiple as last June it's share price would be only 120 - thats 50 cents of rerating for you.
And if you run with Roger's number heaps more to go. Maybe he should put up the PB ratios of BOQ and BEN for starters (probably better to compare than against the big 4)
Just as Percy as said repeatedly for years and years Heartland is truly a world class bank. The market is finally beginning to redognise how good it really is.
Wow - exciting times - almost euphoric
I don't think its a book value story mate. Its EPS and EPS growth both historical and forecast that's driving the SP together with a brighter outlook for the N.Z. economy after the dairy recovery.
PB only tells part of the story. Net interest margin that HBL enjoys relative to its peers tells another compelling part of the story.
I am happy with my analysis and think relative to its peers $1.83 is good value, (I think their superior EPS growth both historical and projected is worth more than a PE premium of 1 but $1.83 is with just a PE premium of 1 so that's fairly conservative considering their strong relative growth progress and outlook).
For what its worth Price to Book Value off 4 traders is as follows, (I have not checked these back to their respective balance sheets to double check their workings)
BOQ 1.27
BEN 1.06
HBL 1.48
NAB 1.71
WBC 1.91
ANZ 1.54
Sector average 1.5.
Fair enough selling for TJ and if he's redirecting funds to SUM he'll do very well. Others of us have a fulsome allocation to SUM already and have cash sitting at call at a miserly 1.5% call account rate with ANZ securities....makes a 5% net yield or ~ 7% gross assuming full imputation credits and 8.5 cps in total this year + dividend growth in future years still look like a compelling case to hold.
You could say we are well positioned :)
Getting the popcorn ready, this should be fun.
- Put that through the winner-mincer and we get ... wait, wait, ... "overpriced, sell and take profits"
- Through the percy-mincer and we get ... waiting, ... "we are well positioned".
- Through the roger-mincer and ... waiting, ... "ignore the analysts, I'm right, it's going higher, and higher".
Just for a sanity check:
- Through the Joshua mincer and ... hmmm ... sorry, can't repeat that here, something about "sell into the ramp", whatever that means.
:)
Just having a bit of fun.