You may well be right Ecks but I think the degree of doom looking out the window in Wanaka is much higher than in rural southland where work is going on as normal and farmers are salivating over a 60 cent exchange rate
Printable View
What depression...?what bear market? What the hell u guys talking about..? Many people ... especially newbies are buying ......they even think skycity is a good buy.... without revenue at least till end of year ....
AIA is a bargain ..... no passengers at least till next year.....
Buy...buy ..buy...... great opportunities!
https://www.youtube.com/?feature=ytca
As the much over quoted Buffett says, “when it’s raining gold, reach for a bucket, not a thimble”. This was from his 2010 annual letter to his shareholders ... right on the heels of the GFC.
Discl. Made my first foray into HGH at .93c
Well....the problem of Heartland being to big a proportion of my portfolio is well and truly fixed.
Silver lining in every cloud !:(
I dont think HGH will be having too much trouble raking in the depositor gold at the moment with comparable tiny rates offered by their competitors for smaller terms and a system awash in Govt Loot, with limited avenues for spending aside from "the so called deemed Essentials"
Their deposit rates pages are only near Rabo - and as for the other players - HGH & Rabo now offer a very generous multiple of those on offer from many or bulk of the majors & other banks.
Hate to say it - Kiwibank (aka The People's Bank) now offer what seem to be the most miserable rates, after having been severely razored down in recent days
A few thimblefuls here and more to follow ..
There is more than interest rates as an incentive to put your term deposit in Heartland bank at stake here. The big four banks have just had their credit ratings downgraded in NZ.
https://www.interest.co.nz/banking/1...otch-alongside
There was a very ominous sentence right at the end of the Fitch press release.
"We will review the remaining Australian and New Zealand banks rated by Fitch in the near future."
Heartland bank is currently BBB. A downgrade to BBB- they could handle. But anything more than that Heartland is no longer an 'investment grade' deposit option. There are some entities that are only allowed to put their funds into bonds and banks with a BBB risk profile and nothing lower. IMO the deposit position at Heartland is now under threat in a way it was not a week ago.
SNOOPY
I'm not sure if I would equate a lower price with "cheap" and I'd be very hesitant to put money into a company which is both highly leveraged (as are all banks) and needs to raise more capital than can be effectively procured from cancelling its dividends for the year.
While I'm too cheap to pay for the privilege of getting behind the paywall, seeing a headline like this so early in the cycle bodes ill for lenders in general: https://www.nzherald.co.nz/business/...ectid=12323544
Think last cap raise (not counting drips) was at $1.70
How the mighty have fallen
We should remember and respect the expressed wishes (quite some time ago) of the owners of ST that we do not post articles from behind paywalls at other media. It is illegal.