I live and learn.
Always thought NZ $ followed dairy prices as dairying made up approx 24% of NZ exports.Dairy prices drop, NZ$ drops.Dairy prices rise. NZ $ rises.
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TSB Bank, (credit rating A-) in the market offering 3.75% for 9 month money, (thinking of depositing one of my bones with them), "trumping", (I dislike that word now for some strange reason), HBL's, (credit rating BBB) former market leading offer. HBL to trump TSB bank tomorrow and offer 3.8-3.9% ? I know these sort of deposit rates bore most people to tears, and fully understand why but the fact remains that the term deposit space is getting more competitive. Just as well HBL have the best net interest margins in the banking industry by miles.
You in good company percy - Reserve Bank Governer Wheeler seems to think so as well. One of the reasons he has got things wrong lately.
Since 2013 there's actually been a moderately negative correlation between changes in the NZD and changes in dairy prices - interesting eh
HBL share price down today - on a day when NZX seems to be doing well
Hope it recovers by 5pm
Hey percy, UDC sold 1.6 times book value
Heartland trading close to that at the moment .....hmmm
Lazy hound decided to dig it out himself http://www.scoop.co.nz/stories/BU161...net-profit.htm
$58.5m, solf for $660m = historical FY16 PE of only 11.2 (UDC a very good business with a very long track record).
Heartland trading at $1.50 of a forecast FY17 forward PE of 12.5 ! (assuming 12.0 cps earnings), mid point of forecast range.
Conclusion - Heartland fully priced at the current level.
hmmmmmmmmmmm,yes.
I think $660 mil is a good price for ANZ to have received.
Will be interesting comparing the growth UDC, under Chinese ownership,achieves, against Heartland's over the next year or two.
I would think "momentum" is on Heartland's side,therefore Heartland would appear to be either "fair" value or slightly undervalued,going on just times net assets.
A year ago, the acquisition of UDC and/or MTF seemed to be te only way Heartland would achieve growth.
This has been proved incorrect,as Heartland have achieved very strong organic growth.This very strong growth is set to continue, as Heartland's strategy of digital products delivered online gains more traction.