HGH - Heartland Group Holdings

[BlackPeter]

Just had a look at all the charts of the Australian banks I follow. Every one of them I follow including the smaller banks like BOQ and BEN have been slammed since the Australian Govt announced their new tax on deposits. Market very unhappy with this new policy...meanwhile HBL sails along unaffected Australian Govt books in a real pickle...wonder if this is just the start of a broader and deeper reach of new taxation on Australian corporates or whether the initial tax rate is just the thin edge of the wedge to get the banks used to being stung before they really sink the boot in ? Either way, it appears HBL shareholders are "well positioned"

Yep, there are some falling knives in the Australian bank sector.

I assume however that the new Australian bank tax was just the trigger for an overdue correction (or the straw breaking the camels back): Overexposure to property speculation (Melbourne apartment buildings), some concerns about the state of the overall Australian real estate market and a resource market which (after early recovery) seems now to move again backwards. Add to that all the empty houses after they deported the remaining 600k Kiwis ... the once lucky country is not that lucky anymore.

[percy]

Sharp downturn in bank home lending. If banks have $$$ looking for a home, will they be looking to other lending opportunities. (Yes of course!) More to the point, will they be looking at Heartland's key sectors and offering better deals to secure. And how much of a risk is it to HBL.

Percy, worth asking at next week's presentation?

https://www.interest.co.nz/news/8794...h-year-ago-new

Basically this came up tonight when Chris Flood answered a question about Land Rover offering low or no interest loans on Land Rovers.
He said they lent money to Land Rover at one interest rate [normal] who lent it to their customers at a lower interest rate.Land Rover covered this on their normal new vehicle profit margin.Working this out with Land Rover was something Heartland could do, while the "big" banks would struggle, and give away as too hard..
An interesting comment was from Jeff Greenslade who said they were looking at reducing the size of loans,ie fewer very large loans and more smaller loans to reduce risk.
You will also appreciate Jeff Greenslade comment "changing all the time.".Seems to enjoy it.
"Open for business" in Australia will initially be run from NZ.
Part of the success of "open for business" [and I take it for other HBL products] is certainty.Being a small business owner I can understand this.A small business wants "certainty" the fiunds/finance is there, before committing themselves to a job, or an opportune stock purchase.
Pleasing to see Jeff Greenslade and Chris Flood so relaxed,and both had that easy way about them that successful business managers have.
Thank you Hobson Wealth, and I was pleased the presentation attracted a full house.

[Joshuatree]

Great,thanks for sharing percy.Happy holder.

[iceman]

Thanks for the interesting update Percy.

[stoploss]

Percy I hope this isn't like people that tried to avoid risk in finance companies and instead of putting 100 K into Hanover , split it into 10 parcels of 10 K ......we all know the result of that risk strategy .
Anyway a new car pretty good security , most people seem to want to make that payment over a lot of others in my experience

"An interesting comment was from Jeff Greenslade who said they were looking at reducing the size of loans,ie fewer very large loans and more smaller loans to reduce risk."

[percy]

Percy I hope this isn't like people that tried to avoid risk in finance companies and instead of putting 100 K into Hanover , split it into 10 parcels of 10 K ......we all know the result of that risk strategy .
Anyway a new car pretty good security , most people seem to want to make that payment over a lot of others in my experience

"An interesting comment was from Jeff Greenslade who said they were looking at reducing the size of loans,ie fewer very large loans and more smaller loans to reduce risk."

It took me by surprise.Usually we hear talk of "larger loans to higher nett worth clients" from financial intos.So to hear less large loans, and more small loans to reduce risk, was a pleasant change.
And yes I remember years ago Scales sold fish etc to one Russian,who would not pay them.The next year they sold to 100 Russians.............yes you guessed.............who would not pay them.It was in Hubbard control years.!!
Yes HBL seems to be a lot different from large banks.Livestock loans,car loans and even Reverse Equity Loans, range from just a few months to under 7 to 10 years.
Something else I found interesting was when HBL was formed they had a staff of 350,and to be fair pretty, backward legacy systems.Today the head count is still the same number,yet they are now at the forefront of digital products and systems.
Hate this saying;They have upskilled their workforce.
With their latest skills they can play around with their online/digital advertising and see straight away what works,straight away.l

[Beagle]

They have a good program on now financing new Jaguar's on a one third deposit, one third next year and one third the year after that at 1.9%. Real interest rate is of course much higher but the Jaguar distributor is paying for that through retail margin on their cars. You could invest in a new Jaguar Percy, finance it through HBL and you'd be lining your own pockets. Call it a gold plated dividend reinvestment scheme http://www.jaguar.co.nz/
F Type R Supercharged V8 4WD with 550 horsepower would be my pick

[percy]

I would not get home from Archibalds without lossing my licence.! 550 horsepower I would be wheel spinning in ever gear.
I also decided against the Bugatti Chiron,because the 19,000 Euro for a set of tyres seemed a bit much.
So what to do? The Nissan only has 115,000 Klms on the clock and still goes well.On trade me I see a 2016 Nissan Pulsar ST 1.8L petrol with only 6,400 Klms on the clock for $19,990,which appeals to me, as the whole car is cheaper than a new set of Bugatti Chiron tyres.!!I guess the insurance and running costs would be a little cheaper too.!
In fact I could buy myself a Nissan,and one each for the two daughters, and still have change left over, passing up the great opportunity of being a Jag driver.I don't think a baseball sun hatted Percy would ever be accepted into The Jaguar Drivers Club.!lol

[couta1]

They have a good program on now financing new Jaguar's on a one third deposit, one third next year and one third the year after that at 1.9%. Real interest rate is of course much higher but the Jaguar distributor is paying for that through retail margin on their cars. You could invest in a new Jaguar Percy, finance it through HBL and you'd be lining your own pockets. Call it a gold plated dividend reinvestment scheme http://www.jaguar.co.nz/
F Type R Supercharged V8 4WD with 550 horsepower would be my pick

I've got one to sell you mate with no supercharger yet still putting out 650 ponies. No fancy stuff like Air con, electric windows, or even a heater(The motor puts out enough heat) it will just sound better than the above, oh and you will be noticed driving through town.

[stoploss]

I've got one to sell you mate with no supercharger yet still putting out 650 ponies. No fancy stuff like Air con, electric windows, or even a heater(The motor puts out enough heat) it will just sound better than the above, oh and you will be noticed driving through town.

I feel a "sharetrader " roadtrip coming up ....