On a different note,I noticed last night as I was dining opposite the Tauranga branch,that they havn't put the word bank on their signwork,but have a video running in the window mentioning they were NZ's newest bank.
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On a different note,I noticed last night as I was dining opposite the Tauranga branch,that they havn't put the word bank on their signwork,but have a video running in the window mentioning they were NZ's newest bank.
this thread is getting like the Pike thread a few years ago .... hysterical fantasicm
Must get balance's mate at oxford to include in his book on investor behaviour ... i believe he is always on the look out for raw material
Sparky, that is partly the problem with Heartland. Many were in CBS, a building society. They then voted to become part of the bank project and saw their share value plummet. Now, that is not me. But for those in this situation it now worries them and SELL is their solution. At least they can get a good nights sleep.
The problem will come, when Heartland goes to a dollar, then higher. Nightmares after that situation. Incredibly, they will then buy back in.
[QUOTE=winner69;395693]this thread is getting like the Pike thread a few years ago .... hysterical fantasicm
Very wrong.
Pike never achieved one thing they set out to do.
Heartland on the other hand have achieved everything they set out to do.
Solid foundations laid for a sound business.
Wasn't comparing hnz to pike Percy ......just comparing the passion of investors in both ...and your response is just the sort of response balances mate at Oxford ( or was it the London school of economics?) loves analysing
Ha haa, hope you aren't referring to me as an expert! I am a small time investor that's only been in the game 2 years, but had planned to get in on the Xero float but stupidly forgot and paid for my mistake (relatively speaking). As such I still have heaps to learn about how things work! Cheers Xerof
I am afraid I suffered a memory lapse when I analyzed the Heartland profit. Here is what Heartland said about their rural loans:
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Rural
The rural receivables book grew from $478.6m to $480.6m during the Current Reporting Period. NOI was $11.5m, an increase of $3.6m from the Previous Corresponding Reporting Period due to a full six months earnings from the PWF book. The minimal book growth was due to low seasonal demand in livestock trading and a low credit growth environment.
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But of course, what Heartland failed to mention was that during the year they acquired the PGW Finance loan book, excluding $90.9m of doubtful loans left with PGW.
$333.911m- $90.9m= $243.0m
On a true before and after comparative basis, including the PGW Finance Assets acquired during the year, the Heartland press release should have read:
"The rural receivables book shrunk from $721.6m to $480.6m during the Current Reporting Period."
So when you combine that with what happened in their other core business areas:
"The business receivables book contracted from $540.2m to $530.5m during the Current Reporting Period."
"The retail & consumer receivables book contracted from $954.8m to $945.8m during the Current Reporting Period."
We can see that total retained core business over the year was:
($480.6m+$530.5m+$945.8m)/($721.6m+$540.2m+$954.8m)= 0.88
In blunt terms the HNZ business contracted by 12% over the last year. Mind you given their capital restraints, it was probably a wise thing to shrink the business down. But let's not let the facts get in the way of a good story. HNZ is not a growth story. It is in fact this country's fastest shrinking bank.
SNOOPY
SNOOPY;
A couple of management tips for you;
1] It's not how many hours you spend working,it's what you do in those hours.
2[ Lending.It's not how much you lend,but the margin you make on those loans.
Snoopy ....Percy and jeff keep on taking about this margin ...Percy a lot and jeff says a key value driver
I have been through a couple of presentations and can't find much about margins ..let alone a rave about them improving. Yes cost of fuds are coming down but maybe, just maybe, they are charging lower interest rates as well
In your research snoops have you found anything about expanding margins
In case SNOOPY is still having memory lapses problems,go to the AGM presentation and read where HNZ want to be and new areas they are looking to expand on.Also read where they don't want to go head to head with the major banks.Lower cost of funds is only half of the full picture.
Also think about of my posts where I have stated HNZ is more like UDC,ie MARAC with a bank licence.
page 19/34 of agm presentation; 'Our emphasis is on cashflow and drivers of productivity;the generation of real wealth-NOT asset appreciation."
Yes I understand all that .....just looking to see the numbers that demonstrate the strategy is on track and working
Just like having the warm fuzzies what is being said is actually happening if you get the gist ...plenty of charts about all sort of things but nothing that tells me interest margins are trending up
Never been any "warm fuzzies" with this company.Speak plain English, and deliver what they say they will.
"Doubtful" does not mean unenforceable, invalid or a liability.
Any loan is "doubtful" whether it is secured or not.
In my opinion Snoopy's analysis is based on the assumptions that:
(a) All the loans from the PGC books are "doubtful", and;
(b) All "doubtful" loans are unenforceable, invalid or worthless/a liability.
Seems like scaremongering to me...