HGH - Heartland Group Holdings

[ronaldson]

Good post (#17479) Balance. The chart certainly seems to indicate that over the past month or two HGH has been oversold.

I looked at the on-market price action today and thought that after this week, maybe even quicker, we may not see sub $1 again unless there is adverse news.

[Balance]

Good post (#17479) Balance. The chart certainly seems to indicate that over the past month or two HGH has been oversold.

I looked at the on-market price action today and thought that after this week, maybe even quicker, we may not see sub $1 again unless there is adverse news.

The divergence is due to the CR which will take time for the market to digest. But digest it, the market will and HGH should resume its correlated movements with the other banking stocks.

[Balance]

The divergence is due to the CR which will take time for the market to digest. But digest it, the market will and HGH should resume its correlated movements with the other banking stocks.

HGH needs to bed in the last two acquisitions (Stockco and Challenger Bank) fully before the market will embrace the stock again and value it in line with its banking peer. Will be 2025/26 before that happens imo. Watch then for the PE and valuation multiple expansion which is of course the biggest driver of any share price.

Just an observation as well for those who are contemplating HGH as an investment - the real action does not start until ASX opens. Fair bit of the placement stock went to Australian institutions and they appear to be the flippers, selling the placement stock for a quick gain.

[SailorRob]

HGH needs to bed in the last two acquisitions (Stockco and Challenger Bank) fully before the market will embrace the stock again and value it in line with its banking peer. Will be 2025/26 before that happens imo. Watch then for the PE and valuation multiple expansion which is of course the biggest driver of any share price.

Just an observation as well for those who are contemplating HGH as an investment - the real action does not start until ASX opens. Fair bit of the placement stock went to Australian institutions and they appear to be the flippers, selling the placement stock for a quick gain.

Rubbish.

Over the short term perhaps. Multiples cannot forever expand.

The biggest and over the long term ONLY driver of share price is the Return on invested capital and the ability to reinvest capital.

[mfd]

Rubbish.

Over the short term perhaps. Multiples cannot forever expand.

The biggest and over the long term ONLY driver of share price is the Return on invested capital and the ability to reinvest capital.

I think you're playing different games here. If one player just wants to double or triple their money in a few years, PE expansion is likely how that's going to happen. If the other player wants to hold forever, or at least a decade of two, it's irrelevant other than offering occasional buying opportunities.

[Balance]

I think you're playing different games here. If one player just wants to double or triple their money in a few years, PE expansion is likely how that's going to happen. If the other player wants to hold forever, or at least a decade of two, it's irrelevant other than offering occasional buying opportunities.

Earnings growth + PE expansion = sp performance. It's that simple.

But don't mind SR.

He believes stock going down is a good thing and OCA using ever more debt to buy ever more expensive developments (which they cannot sell) and pay dividends is a great strategy.

[SailorRob]

Earnings growth + PE expansion = sp performance. It's that simple.

But don't mind SR.

He believes stock going down is a good thing and OCA using ever more debt to buy ever more expensive developments (which they cannot sell) and pay dividends is a great strategy.

Or earnings decline and PE contraction which you'll be more familiar with.

PE expansion is usually between say 10 and 25 which isn't a lot really compared to long term retention of earnings at high returns on equity.

[SailorRob]

Earnings growth + PE expansion = sp performance. It's that simple.

But don't mind SR.

He believes stock going down is a good thing and OCA using ever more debt to buy ever more expensive developments (which they cannot sell) and pay dividends is a great strategy.

Earnings growth PER SHARE...

[Balance]

Or earnings decline and PE contraction which you'll be more familiar with.

PE expansion is usually between say 10 and 25 which isn't a lot really compared to long term retention of earnings at high returns on equity.

But of course!

Why I avoid dog tucker stocks like OCA.

[SailorRob]

But of course!

Why I avoid dog tucker stocks like OCA.

Is that the same OCA that you bought at 59 cents?