On a first read I can see no mention of the proposed share buy back. Maybe that was only disclosed to the Maori readers of the report.
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See ANZ need to increase 1/2 year credit charge (bad debts) by $100m to close to $1 billion
Just as well Heartland don't do much lending to dodgy industries else their Tumu Whakarea would need to make such announcements as well
Notice of buyback: https://nzx.com/companies/SUM/announcements/279820
Net profit up 9% to $25.6m looks okay if you accept dairy loan provisioning at face value...(most dairy farmers can't pay interest bill http://www.nzherald.co.nz/business/n...ectid=11611251), but interestingly net profit after net change in foreign currency translation reserve, (lost money here in this half and pcp) is ostensibly unchanged at $21.8m v $21.2m last year.
You really do see only what you want to see and hear only what you want to hear, don't you ?
http://i7.photobucket.com/albums/y26...eTrader/DP.png
"Because although it has many omissions, contains much that is apocryphal - or at least wildly inaccurate - it scores over the older, more pedestrian work in two important ways: first, it is slightly cheaper, and second, it has the words ‘Don’t Panic’ inscribed in large, friendly letters on the cover"*
Best Wishes
Paper Tiger
*THHGTTG
Peabody Energy, it used to be Peabody Coal but coal became rather dirty, is the largest coal producer in the world.
Unfortunately, accountants got hold of it. I think they paid dividends but also borrowed a few dollars. Times were good.
Unfortunately, times are a little uncertain and a 70 million US interest payment is due. Ooops. No cash.
Can you wait a month???
(Plus lots of other debt with both interest and capital due).
Heartland should raise cash for takeovers. Not to return 'excess' capital to shareholders. And definitely not in our present climate.
Sounds a good idea,but consider what possibly the company with the best capital management did a few years ago when they had excess capital.That company is Ebos which turns over its stock about 10 times a year.
Director Peter Klaus told then CEO/MD Mark Waller to return excess capital to shareholders.Waller then said,but we will most probably do an acquisition.To which Klaus replied,"if the acquisition stacks up shareholders will front up." "Having a lazy balance sheet with excess capital,tempts management doing a poor acquisition."
Ebos is offcourse a "medical supply logistics" company,but they know the real value of capital.Three or four years later Ebos did a massive acquisition which shareholders keenly supported.
So is it too much to expect HBL know the true value of capital.After all the directors and management have significant holdings,and the business is banking,not medical supplies.They may even decide it is prudent to retain their excess capital in present market conditions.
What has been proven is the fact that HBL have a record of prudent stewardship.So I have every confidence they will make the right decision with what to do with the excess capital.