Dipped to $1.01, keep watching this space ...
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I can not stop thinking about Warren Buffet's quote;
"Only when the tide goes out do you discover who's been swimming naked."
Appears to be a lot of naked swimmers around at present.!..lol.
I've been quoting that one a lot recently
Its quite disgusting seeing all these folk naked - I don't wanna look but I cant help taking a peek haha
A lot of the selldown is caused by Emperors with No Clothes imo. Sure there are reasons for less sanguine economic views but the stockmarket really punishes weak holders and tries to force them to liquidate.
Good to see Jeff keeping shareholders up to date. Italics are from the 18th March Update:
1/ Heartland expects that new lending levels in some portfolios, such as business intermediated and SME, will slow.
It will be no surprise to me if the open for business electronic channels come to a near halt, although there may be a pick up from the big banks wishing to shed some riskier customers in the medium term. Being mostly an 'e-presence' OFB should be relatively easy to ramp up and down as required.
However, Heartland has already started to re-focus its resource towards areas, such as NZ and Australian reverse mortgages and motor, where new lending forecasts remain strong.
Will pensioners suddenly strive to repay their RELs? I think not. Will workers suddenly stop their car finance payments so they can no longer travel to work or look for work? I think not. Good short term cashflow from those motor loans will keep coming.
As a result, Heartland is confident that total lending growth will continue. It is also pleasing to note that Heartland’s residential mortgage offering has been well received by the market and that much of the initial limited availability has already been allocated.
The new mortgage offer will provide Heartland yet more cashflow which is important at this time.
Heartland is working with a limited number of borrowers in industries such as forestry, where current events are exacerbating existing financial stress. Heartland will continue to monitor conditions as they develop, and support affected clients, but remains comfortable with its current provisioning levels.
The above comment is especially encouraging for what it didn't say. Heartland appear happy with their dairy industry provisioning!
Heartland remains comfortable with its liquidity levels, and as recently as the 16th of March successfully issued $20m of registered certificates of deposit to wholesale investors.
Translation: Wholesale investors are happy to back Heartland through troubled times. Even the massive cash bucket of Beagle is parked there.
SNOOPY
discl: Holder. Picked up a few more yesterday.
Its official, the two Beagles are now playing Tug of War. Snoopy is long, Beagle is short.https://www.youtube.com/watch?v=nnsQxCaHeic Hopefully we don't tear the bank apart in the process lol
I sold at about $1.80 on average and went short so am winning this game very handsomely so far :t_up:
You have already lost this contest Beagle. All I have to do is wait for your short to expire, add up what you have made (if anything) then wait enough accumulated years until my dividends accumulate to more than you made. I will be accumulating my dividends via the DRP. It's called 'compound interest', one of the most powerful forces in the universe....and it will create 'compounding capital' for me.
I have heard your stories of gloom and doom, and the poor performance of finance companies in recessions. But not all finance companies in NZ disappeared in the GFC. So what the board need to do is recruit a CEO who can slug it out in the deepest mud. Someone who knows how to steer this finance ship through the icebergs. Like the guy who saved Marac for example. The good news for shareholders is that he is already there, and goes by the name of Jeff....
SNOOPY
HGH one to watch this morning. Massively oversold IMHO.
I haven't lost. I can cover the short at any time, (no hurry...this Bear is going to be with us for a long time yet), and go long again and then we'll be both barking up the same tree :)
Quote for the day, don't forget this one mate "Banks and finance companies are support mechanisms for customers struggling during a recession" The question you might like to consider is how long and how deep this recession will be and might HGH need support itself from shareholders or the Reserve Bank at some stage ?
Couple of options for you
https://www.omf.co.nz/
https://www.cmcmarkets.com/en-nz/markets-shares