What I don’t understand is why they keep asking for more money. Why don’t they just pay a lower dividend and put the rest towards “growth”
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What I don’t understand is why they keep asking for more money. Why don’t they just pay a lower dividend and put the rest towards “growth”
Anyone else find it interesting that they're doing another capital raise after doing one earlier in the year and $100m capital notes issue as well.
Just saying that's a lot of capital to raise. I guess its all good and going off recent information reverse capital mortgages which are high margin are growing very strongly and have to be funded. I suspect regular capital raises will be a feature going forward.
Been running my own figures and I can't see where the "strong" growth is.
Sure 12% growth sounds nice on the prior three month period (Q1 2017) but as any of us more experienced investors do, we dig down a little further to identify the only earnings figure that matters to us shareholders.....Earnings per share (EPS). Now this rights issue will be the fourth dilutionary event this calendar year (with the SPP and two DRP's) all of which have given the company addition funding to grow on behalf of the shareholders.
I'll share my figures to illustrate:
1st Qrt 2017, NPAT $14.3m on 485.47m shares, = EPS of 2.95c
1st Qrt 2018, NPAT $16m on 522.65m shares, = EPS of 3.06c
Actual prior calendar period EPS growth rate of 3.7%
As you can see this is a way away from a "strong" growth rate.
Plus this being the second capital raising this year, shareholders should ask themselves if they are now actually funding the company's growth out of their own pockets?
I've been in this one long term, since it had the BSH ticker. It's been a great investment.
Rather than just take 1 quarter in this and last year, I prefer longer term view and looking back to say 2014 as an example, EPS has grown from 9c to 12c (expected), dividends from 6c to 9c and SP from 85c to 190c. Throughout, the company has done what they said they would do and are actively broadening the business in innovative ways, mostly online, without direct competition with the Big Four.
I see no reason at this stage to dampen my enthusiasm for HBL as a long term investment and core of my portfolio.
From www.4-traders.com
.....................2015....2016....2017....2018. ...2019.....2020.
divie................7.5......8.5........9.......9 .53......10.1......10.6
eps.................10........11........12.......1 2.9.....13.9.......14.5
Not only are we seeing an increasing dividend and eps growth, we are also seeing ROE and ROA increasing yearly, on the larger capital.