A lot of small trades today.iS THAT MORMAL OR HAVE I MISSED SOMETHING.
Printable View
A lot of small trades today.iS THAT MORMAL OR HAVE I MISSED SOMETHING.
Good post BP. I also enjoy reading the results of the resident Beagle dog's foraging. He's get's his furry snout into places some don't like to examine and has a reasonably good nose for sniffing out decaying rat's lying in dark corners. Don't always agree with him but I enjoy watching his work just as much as watching the Beagle dog's at the airport go about their work.
I had the real pleasure of owning a beagle for 11 years so I think I can say with quite some authority that they seem to derive their own pleasure simply from getting their snout into all sorts of different places. They really seem to get off on discovering new scents and trails to follow and I think the resident beagle is no exception to the breed. Not so sure about the tummy rub thing, Kelly never seemed to like that all that much but I can assure you Sidney Silky Terriers absolutely love that :) All dogs like a good pat from time to time. I admire his tenacity.
DON'T PANIC!!!!!!!!!!!!!
Actually, it might become even cheaper. But, then again, could get much worse. Flick a coin for the answer!
BUT, if people want to get out of sterling or whatever, to put it into the Kiwi, they might put it in shares.
Again, flick a coin.
BUT there will be winners and losers from this lot.
I have no clue which I shall be!
Advice please.
It is a fact that companies whose ROE and eps increase,have the capacity to pay increasing dividends, will see their share price increase.
In today's environment of on going low interest rates, the market is looking for companies with strong balance sheets,that are paying good dividends,and have the capacity to increase them.
I see Heartland fitting the bill on all measures.
No need for flicking coins when you have done sound research.I leave that to Tossers.
Has Brexit realy changed anything with regards to new zealand....the potential down the track maybe with regards to higher interest rates, but for now nz will keep trucking along....we will get trade deals with europe and britain on similar terms as now....bargains abound on the nzx
For this morning's 'question of the day' I am reverting to my favourite subject - impairment :-) - and specifically the non-core property portfolio of FY2013 (or is that the non-core dairy portfolio of FY2017).
Now, a Heartland banker who makes an impairment provision is seen as
A/ prudent, far sighted, managing debts to best practice and responsible.
OTOH a Heartland banker who has to write off a loan is seen as
B/ reckless, lacking in due diligence, ill disciplined and squandering resources.
Now the curious bit. At the end of the day whether a loan is written off in advance by 'provisioning' or written off immediately in an 'expense' makes no difference to the long term position of Heartland bank. So my question is, are Heartland's senior loan managers best characterised by A/ or B/ ?
SNOOPY
Well, yes - BREXIT has changed some things re NZ markets:
* NZD went up ... i.e. reserve bank likely to further drop interest rates.
* British consumers have less money (due to dropping pound sterling) - i.e. British consumers can buy less (including from us). This will impact our exports as well as tourism; Might impact as well on our housing market (potentially more UK immigrants but with less money), which may or may not be a good thing;
* British unemployment is going to rise (well, this is not just common sense, but as well what the crown analysts predicted (check out the links hoop posted) - i.e. less money for the British consumer - consequences see above.
* NZ just negotiating a free trade deal with EU. Getting too cosy with Britain during this time might impact on our chances to be successful with the continent. Will be an interesting balancing act;
Still agree, that we have at this stage likely some bargains in our stock market ... this is unless the British disease is spreading.
Brexit and Heartland.
Funding;Unlike the Aussie banks HBL does not rely on any European wholesale funding.So no funding problems for Heartland,who have 38,000 individual depositors,19,000 of whom have been with Heartland for 10 years or more..
Interest rates;Should interest rates increase all banks, including Heartland, will do well as their margins increase.
....................;Should interest rates stay low,Heartland has been steadily improving their net interest margin over the past four years and that looks set to continue.
......................With their capacity to grow dividends [projected to be 9cents per share fully imputed for 2017] ,strong equity ratio,I would think investors will be attracted to Heartland.From what I have read The Reserve Bank of NZ is more likely to reduce interest rates than increase them
If everyone was an Accountant, then you would be right.
But people can become panicked. DON'T PANIC!
Markets can go all over the place.
However, we can be thankful that Heartland runs on cash borrowed in NZ. PLUS that they have a pretty diversified loan book.
The sp can go up, or more likely down. Since we in NZ cannot escape a Global Meltdown...Or even heavy rain.
You forgot option C - With great reluctance and after a great deal of time has passed and considerable forbearance has been shown, reluctantly doing what is only done as an absolute last resort because all possible efforts aimed at recovery, rescheduling, restructuring, refinancing or otherwise avoiding recognising a loss have been completely and utterly exhausted and the loan has irrevocably failed with absolutely no chance whatsoever of even a partial recovery. This is only done after all channels of recovery have been fully exhausted including any proceedings taken against guarantor's if any and liquidation of all assets held as security.
That's how most finance companies and banks operate.
Meanwhile, of course, the loans have been 'rolled over' so that it can be claimed that there are Zero loans in arrears. The loan book is Healthy. Do Not Worry.
But.............at the back door those in the know are lined up for their cash.
I hasten to add that I think Heartland is pretty solvent, and I am not selling atm.