Way better than Bitcoin. You could include a link to HMY and drum us up some business.
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Way better than Bitcoin. You could include a link to HMY and drum us up some business.
https://www.nzx.com/announcements/389893
Looks interesting.
Yes, best word to describe is definitely- interesting!
Paying 13x earnings
This is a good way for HGH to get into asset finance in Aus. Provide cashflow lending to the farmer for their stock then fund the tractor and ute once they get the profile and payment history going
This excellent GARP stock can continue on its run for another decade by expanding in Aus
https://www.nzx.com/announcements/389893
Heartland to acquire livestock business in Australia
Minnow Alfred (ALF) are in the game of financing moomoos & sheeps too - aren't they ? ;)
I am sure you meant it has many decades of growth ahead of it. Yes that's an interesting acquisition and gives them a foothold for expansion with rural lending in Australia. HGH itself has a current year PE of 14.0 (eps of 16 cps forecast) and when one considers the steady growth and excellent net interest margins they enjoy as well as strong growth from reverse equity mortgages this looks like a compelling hold and is indeed a fine example of a classic GARP stock (Growth at a reasonable price).
Wonder if HGH have thoughts on taking out ALF ? ;)
just as well this Stockco only lends to asset rich farmers and don't get involved in the riff raff that we hear about that are driven off their farms in tough times by those distardly big Aussie banks
Did OK buying PGG Wrightson Finance 10 years ago
Interesting latest move
Say $12m extra profit = 2 cents per share
Should add 25 cents or more to share price in due course
Heartland not buying Stockco NZ?
This article says Heartland been funding Stockco NZ -- Heartland Bank also understands and has a relationship with StockCo through financing the operations of StockCo New Zealand for over 10 years.
https://www.beefcentral.com/news/nz-...kco-australia/
Thanks for the link mate. This bit is really interesting The transaction is expected to contribute additional annual net profit after tax of A$10 million to A$12 million, before any ongoing cost of acquisition debt funding. At this stage, given timing of the acquisition and the transaction costs, there is no change to Heartland’s market guidance for the financial year ending 30 June 2022 (FY2022).
Suppose they fund that acquisition at 4% before tax, about 3% after tax that suggests a funding cost of about $A5m and this acquisition could be earnings accretive by between $A5m - $A7M per annum, say $A6m = approx N.Z$6.4m = ~ 0.9 cps annual earnings. Applying HGH's very reasonable current year PE of 14 to that this suggests this is value accretive to HGH to the tune of 12.6 cps.
Upgraded my view on HGH to BUY on the back on this acquisition.
Sorry mate, I wasn't trying to undermine you, I didn't see your post before I posted. Could be a bit more depending on the price of funding and how it grows going forward and any operational synergies they can extract. Maybe ~ 20 cents extra value to HGH is not out of the question ?
Any way you slice and dice this its meaningfully earnings and value accretive for HGH shareholders.
"And Jeff will ensure its a success"
is that before or after a BIG DRY event....
suppose there is always insurance ...
why not buy an insurance firm?
Livestock?
oh dear ....
https://nullarborroadhouse.com.au/creatures-middle-nowhere-wildlife-nullarbor-plain/
About StockCo Australia
StockCo Australia was founded in Australia in 2014, but has origins in New Zealand dating back to
1995. The company provides livestock finance for cattle and sheep farmers across Australia,
primarily through its direct channel.
Like Heartland’s livestock lending solutions in New Zealand, StockCo Australia provides cashflow
solutions to customers who are typically asset rich, allowing them to purchase livestock, maximise
returns, and run their business more effectively.
" typically asset rich"
the economic farm surveys in NZ were a great stat report in the early 80's . Havnt read the Aussi version if there is one still published on the state of Aussi farming.
suppose one should seek it out and come up to speed.
Certainly HGH has performed. Sadly the PGC days have always stayed in the mind but not MR P's.
MR P has thus profited.