Priced about right. If I held I would take the DRP
Half year will be interesting
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Yeah, I noticed this "doubling of the profits in 5 years" as well - Jeff clearly seems to be much more optimistic than the usual analysts. Jeesh - this would be a CAGR of 15%!
Just to compare:
HGH's backwards earnings CAGR (10 years) is 8.3%. Hmm - is he really going to double that?
Analysts predicted a forward earnings CAGR (3 years) of 4.7% - they better go back to their drawing boards, can't have analysts being less optimistic than Jeff, can we?
But then - I noticed he was talking just about an "ambition" to double the earnings (not a forecast), wasn't he? and even better - wasn't this doubling meant for the underlying earnings?
Looks like Jeff has left himself plenty of escape routes to keep satisfying his ambition ...
Shame the media don’t understand underlying / normalisation / jigggery pokery …unlike punters
Heartland profit stalls as margins shrink, lending slows
https://www.rnz.co.nz/news/business/...30+August+2023
"In this environment, Heartland's asset quality has performed within expectations. Heartland has worked hard to support its customers, particularly those facing temporary difficulties due to the current economic environment," the company said in a presentation.
Going for the tittle 'Least hated bank" maybe?
Some of you guys are making this shareholder squirm a bit. Only Percy is sticking to the faith.
I am sure I remember my old dad telling me when I was just a pup that if you take a chicken wishbone, then dry it out, make a wish then 'break the bone' with a friend (with each of you holding one end), then whoever keeps hold of the apex of the bone when it snaps - then their wish will come true. Provided that is, you do not tell anyone what your individual wish was until after the exercise is over.
If Wishbone is now defunct, this puts a dent in that legend. Actually I did read that Saturday Post article from a couple of weeks back. It said Wishbone wasn't dead, - just 'resting' under a receivership blanket. Waiting for a white knight to give her a kiss and wake her up again. Well I still believe in dreams. And with Jeff as the fairy godfather, how can this not come true?
It is true I did jest as the milk price fell of a cliff that Jeff would be onto it, and would serve up milk shakes at the AGM, in solidarity with his sharemilker customers. But now some of you seem to be suggesting that Jeff will be serving up pork pies as well. Really? I mean this is Jeff we are talking about here. The last time I quizzed him about risk he had that broad contemplative smile and said 'everything was in harmoney' or words to that effect. My advice to shareholders is to take their own sandwiches to the AGM. Don't rely on being served a pork pie!
SNOOPY
Interesting to contrast RNZ's article with the Business Desk's article on the same topic.
Heartland focused on securing Australian licence
Heartland Group Holdings is focused on securing its Australian licence to be an authorised deposit-taking institution as it draws tantalising close to the $100 million profitability mark.
So who sets the correct tone about Heartland and what the future for it will be?? RNZ or Business Desk? A general news media site or the specialist business media one?
By the way, isn't RNZ known to be somewhat more Left than Chairman Mao? I don't know as I never access it.
https://businessdesk.co.nz/article/f...ralian-licence
The article may be behind their paywall.
C'mon now snoops, Percy isn't the only one keeping positive - I wouldn't call it faith as we are well informed. I am pleased with the result, Jeff and his team have done well considering their ambitions remain high and the markets are challenging!
Craigs like HGH too,moving them to "overweight".
They see the dividend raising to 12 cps in 2024.,....12.5cps in 2025 and ,.......13.2 cps in 2026.
FY23 was the year that the reality of writing reverse mortgages hit operating cash flow severely.
So-called 'changes in operating assets and liabilities' puts them back into positive. A nice banking accounting trick.
But compare net operating cash flow before changes in operating assets and liabilities to FY22 and the pressure the reverse mortgage business is putting on the company is obvious.
Luckily, they got a share issue away for $193m.
For those interested NTA at June was $1.09 per share …… was $1.16 two years ago
Just as well market doesn’t use NTA as a valuation metric
The most worrying aspect of the Heartland Results comes when I hover my mouse over the front page of the presentation and I get a little pop-up as below.
Attachment 14732
Maybe an AI thing?
Jeff is apparently, "a person in a suit" and Andrew is "a person in a white shirt"
That pop up could be an accessibility feature. Was there a photo or illustration on that page?Sometimes they add these on websites and they are read out loud by the software for people who are blind or have impaired vision. Generally used to describe what is in photos or other graphics.