Originally Posted by
mouse
Not exactly with new cars. All car makers are stuck world wide with stuff they cannot move. Hence these very low interest rates, plus even a low price on the car. Which is considerably helped by a very strong NZ dollar. The point is, in this situation that Heartland ends up financing only second hand cars. Which have a much higher chance of turning into a lemon, and thus a bad debt. I am very happy with Marac expertise being transferred to Heartland. So they know about car finance. But they are lending at a higher risk.
My query, and I repeat it, is the wide range of finance that Heartland is providing. Do they have the expertise to do it?
Next, I managed to buy 15,000 Heartland at 50 cents. Which has now put me close to being in the black with costs for Heartland. But those not in my fortunate position must be very seriously wanting to sell shares that have cost a lot of investors a lot of cash. Hence my idea that the shares have a natural price ceiling for the next couple of years of 90 cents. Any ideas on that? What sort of price can we realistically forecast by December 2014?