My thanks as well Percy. Heartland is one of the first companies I took a gamble on when dipping my toe into the sharemarket. I wish all my choices could have been as profitable as this one.
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My thanks as well Percy. Heartland is one of the first companies I took a gamble on when dipping my toe into the sharemarket. I wish all my choices could have been as profitable as this one.
Good summary Percy, thank you.
Have not thought about this question too much, but with this 1/3, 1/3, 1/3 etc at no interest, how is Heartland making money on it, do the dealers pay a fee/interest or a certain % don't come up with the next instalment in 12 months and so effectively borrow again pay interest??
A few years ago we were looking at upgrading our vehicle (had the funds, but not available at the time) and Holden were offering (thru Heartland) no payments for 3 months, however, looking into it further, interest was still payable even if you paid it off at or just before the 3 month period ended.
P.S. Did not buy then and not a Holden either.
Thanks for sharing about the presentation Percy.
My local Holden dealer told me a few weeks ago they did huge business over summer with the zero deposit, nothing to pay for 3 months and then 4.95% interest for 48 months deal. People had to pay retail price of course but they really went berserk over this deal he told me and he's done massive business. As we've discussed before the vast majority trade a vehicle in so there's usually a reasonable deposit paid via the trade in.
Been a great run since the low $1.30's including the dividend and now we're in the late $1.60's that suggests a FY19 PE of ~ 13 my sense is this is about fair value and a good hold for yield and eps growth in FY20. SP gains from here will require patience in my opinion. Gross forecast yield for FY20 assuming 9.5 cps in dividends = 7.85% at $1.68. Nothing wrong with that and we should see mid- late single digit eps growth next year too.
Just a heads-up folks. HGH have dropped their interest rate on their call account to 2.25% from 2.5%.
They are still paying 3.45% for 9 month term deposits but for how much longer is anyone's guess ?
Which I am hoping is good news for the share market - to continue driving demand out of deposits and into equities. a 1.5% aftertax deposit return is nothing to get excited about.
(I wonder if we are getting close to the point where banks will charge us to look after our money)
Talking to Jeff Greenslade after the presentation ,I managed to make him smile with my comment "it is better to own the bank rather than have money in the bank."............lol.
What does the latest announcement mean
Bit of a mystery to me why the SP has slumped today, to $1.60 ...
... but a good opportunity to top up for me. :t_up:
The very successful bond issue resulted in HGH sp dropping 4,2% ie 7 cents today,to close at $1.58.??,,,.lol.
Not sure whether that is funny ha ha, or funny peculiar.?