HGH - Heartland Group Holdings

[Snoopy]

What a few days and a record close of 120. Wow

Good news Snoopy appears to have given Heartland a clean bill of health. Enough good capital cover to sink a ship


Heartland only has a tiny amount of Tier 2 capital. Yet weirdly, because of this and the way those NZ reserve bank covenants are written, it seems this has become the limiting factor as regards Heartland's Capital Adequacy going forwards.

The way I read this (and I could be wrong), Heartland must make sure their total Tier1 and Tier 2 ratio is in excess of 8+2.5=10.5. At the last balance date with declared results (30-06-2014) Heartland had a Total Tier 1&2 Ratio of 17. Total shareholders equity was $452.6m. If they only had:

$452.6m x (10.5/17) = $279.5m of equity.

that would have been (roughly) sufficent to cover the loan book at the time (with the benefit of retrospective application of today's new reserve bank sanctioned capital standards)

Then based on today's covenants, that leaves:

$452.6m - $279.5m = $173.1m of 'spare' capital that could be allocated to an expanded loan book. In practice no bank would 'go to the wire' in this kind of expansion. So lets say $150m of capital available for loan book growth.

The question is what kind of loan book could Heartland acquire with that? About $1.5billion in new loans perhaps? That's if they only paid book value for the new loans, of course.

SNOOPY

[Snow Leopard]

Snoopy you may want to consider this.

Heartland have a Home equity release business which is currently separate from the Bank.
They have stated (somewhere ?) that their intention was to bring the NZ part of the business into the Bank.

So how does that play out with respect to all this Capital Adequacy stuff?

Best Wishes
Paper Tiger

[Snoopy]

Snoopy you may want to consider this.

Heartland have a Home equity release business which is currently separate from the Bank.
They have stated (somewhere ?) that their intention was to bring the NZ part of the business into the Bank.

So how does that play out with respect to all this Capital Adequacy stuff?


Thanks PT for reminding us that the 'Heartland' you can buy on the sharemarket and 'Heartland Bank' are not the same thing! Back at EOFY2013 they used to be virtually the same thing. But the HER business acquisition seems to have changed that. Comparing the 'Heartland' balance sheet as at EOFY2014, and the 'Heartland Bank' balance sheet (from the Heartland Bank Disclosure Statement) as at EOFY2014 tells the story.



Listed HeartlandHeartland BankDifference


Total Assets$3,016.888$2,390.749m$626.139m


Finance Receivables$2,607.393$1,985.119m$622.274m


FR Not past 90 days nor impaired (non securitized)$2,321.630m$1,693.063m$628.567m



Declared cash cost of Seniors acquisition $NZ87m (14-02-2014), with an aggregate asset value of $NZ760m (including NZ$30.5 million of HER loans purchased by Heartland Bank in December 2013).

Exchange rate at 20-02-2014: $NZ1 = $A0.9283
Exchange rate at 20-02-2014: $NZ1 = $A0.9291

So $NZ730m worth of Austrlian dollar loans reports as $NZ729m on balance date.

SNOOPY

[percy]

PT is correct that they want to move more of the NZ REL business into the bank.

[Snoopy]

PT is correct that they want to move more of the NZ REL business into the bank.


So it looks like Heartland Bank are all set to make a reverse takeover offer for (drum roll) - Heartland! That would certainly allow them to operate with one board, not two. A good cost saving. Not sure who of Bruce Irvine, Nicola Greer and John Harvey would be retained from the bank on the slimmed down Heartland board. Probably Nicola to get more gender diversity. An important back up to newly appointed director Deborah Taylor, should Deborah's tea making skills not be up to scratch (if I might stir the pot a bit!).

SNOOPY

[Marilyn Munroe]

S Not sure who of Bruce Irvine, Nicola Greer and John Harvey would be retained from the bank on the slimmed down Heartland board.
SNOOPY

The provincial accountants who cheer-leaded CBS Canterbury shareholders into Heartland have served their purpose have thay not?

Boop boop de do
Marilyn

[percy]

So it looks like Heartland Bank are all set to make a reverse takeover offer for (drum roll) - Heartland! That would certainly allow them to operate with one board, not two. A good cost saving. Not sure who of Bruce Irvine, Nicola Greer and John Harvey would be retained from the bank on the slimmed down Heartland board. Probably Nicola to get more gender diversity. An important back up to newly appointed director Deborah Taylor, should Deborah's tea making skills not be up to scratch (if I might stir the pot a bit!).

SNOOPY

Not that I am aware of.
Should it happen it will not happen any time soon.
We must also remember Heartland owns a REL business in Australia.There is no intention to make that part of the [NZ] bank.

[janner]

My prediction .. For what it is worth..

Another consolidation stretch.. .. Followed by another " Burst ".

So far correct..

Not much action until the next report..

Take into account the overhang.. ( All ready spoken for... IMHO. )..

You have until April :-)))) Also IMHO..

Not increasing my holding.. Apart from DRP..

Having ridden this one from the early stages and not selling .. ( Aye percy )...

Feel there are other stocks available that will give better Dividend returns.. For my new SAVINGS !!....

[percy]

Just got to keep our daughters away from our profits.!!!! .
Just forked out for the grand daughters school uniform.!! not funny.
Have put off my retirement for another 35 years..!!!
Does the pension double when you reach 100.???

[Bobdn]

Just got to keep our daughters away from our profits.!!!! .
Just forked out for the grand daughters school uniform.!! not funny.
Have put off my retirement for another 35 years..!!!
Does the pension double when you reach 100.???

How come your children can't afford to pay for their kids' uniforms?

[vorno]

Just got to keep our daughters away from our profits.!!!! .
Just forked out for the grand daughters school uniform.!! not funny.
Have put off my retirement for another 35 years..!!!
Does the pension double when you reach 100.???

Nope, however you may receive a letter from the queen - priceless!

[percy]

How come your children can't afford to pay for their kids' uniforms?

A question I keep asking myself.???!!!!

[percy]

I thought that's the sort of thing grand parents are supposed to do.

That's the way they see it too.!!!!
Wife eats the biscuits and the ice cream before they get here.To save them from themselves!!!!! lol.

[Beagle]

That's the way they see it too.!!!!
Wife eats the biscuits and the ice cream before they get here.To save them from themselves!!!!! lol.

I think there's something on TV1 news tonight, (vaguely recall a promo on it on breakfast T.V this morning) about the spiralling cost of school uniforms.
From my days with my kids its usually supplied by a corporate apparel company, you have no choice about which company you go to and the prices are well beyond a sick joke.
Is there an opening for our beleaguered retailers here WHS or PPL to introduce some meaningful competition into this sector ?
Opps sorry, just realised this has nothing whatsoever to do with HNZ unless granddad Percy had to get a loan from them to cover the cost :)

[dingoNZ]

https://www.nzx.com/files/attachments/207193.pdf

Heartland New Zealand Limited (Heartland) (NZX: HNZ) advises that it expects net profit aftertax (NPAT) for the half year ended 31 December 2014 to be $23.0m to $24.0m. Thispreliminary result is subject to finalisation.Heartland is pleased with its strong first half performance which has been primarily driven byasset growth. The preliminary result does not include any upgrade in value for Heartland’sshareholding in Harmoney Corp Limited (Harmoney). Heartland is yet to consider whether anupgrade is appropriate as a result of Harmoney’s recent $10.0m capital raise in whichTrade Me Limited acquired a 15% shareholding. Underlying asset growth is expected tocontinue for the second half of the financial year, with strong Business, Rural and Consumervolumes projected while also maintaining expected margins.The final half year results will be released late February. Heartland will inform the market ofthe proposed half year results announcement date in early February.Heartland has increased its forecast range for NPAT for the year ending 30 June 2015 to$46.0m - $48.0m, up from the previous guidance of $42.0m - $45.0m. This forecast NPAT islikely to achieve a return on equity of at least 10.0% for the full year.

EXCELLENT.

[iceman]

Great news but no surprise really. I think Jeff just caved in under the pressure from W69 and Roger :t_up:


https://www.nzx.com/files/attachments/207193.pdf

Heartland New Zealand Limited (Heartland) (NZX: HNZ) advises that it expects net profit aftertax (NPAT) for the half year ended 31 December 2014 to be $23.0m to $24.0m. Thispreliminary result is subject to finalisation.Heartland is pleased with its strong first half performance which has been primarily driven byasset growth. The preliminary result does not include any upgrade in value for Heartland’sshareholding in Harmoney Corp Limited (Harmoney). Heartland is yet to consider whether anupgrade is appropriate as a result of Harmoney’s recent $10.0m capital raise in whichTrade Me Limited acquired a 15% shareholding. Underlying asset growth is expected tocontinue for the second half of the financial year, with strong Business, Rural and Consumervolumes projected while also maintaining expected margins.The final half year results will be released late February. Heartland will inform the market ofthe proposed half year results announcement date in early February.Heartland has increased its forecast range for NPAT for the year ending 30 June 2015 to$46.0m - $48.0m, up from the previous guidance of $42.0m - $45.0m. This forecast NPAT islikely to achieve a return on equity of at least 10.0% for the full year.

EXCELLENT.

[Bjauck]

Nope, however you may receive a letter from the queen - priceless!
Myself...I'd like to get a letter from Sir Prince Philip, Duke of Oz.
Looks like Heartland s still on track for providing a boost for sharholder's pockets to hep pay for school uniforms in years to come.

[percy]

A very pleasing update.
Of note is the fact that profit increases are no longer driven by costs savings,but "primarily driven by asset growth,which is/are expected to continue",and "maintining margins."
And the "icing on the cake" has to be "ROE of AT LEAST 10%".
Well done Jeff and the team "you have delivered again"!!!!!!!!!!!!

[percy]

Myself...I'd like to get a letter from Sir Prince Philip, Duke of Oz.
Looks like Heartland s still on track for providing a boost for sharholder's pockets to hep pay for school uniforms in years to come.

Don't know who or whom will send me the letter,but hopefully it will not be from any Duke of Oz!!!!
Jeff must have school uniforms to pay for too.!!! lol.

[NZSilver]

Nice update and good work to the ST members who did the research re likely profits, it's spot on and thanks for sharing it on the forum.

[Bobdn]

Yes, some good comments and analysis in this thread. I bought 12000 shares at $1.14 which is a big chunk of change in the context of my overall net worth. Wouldn't have thought about HNZ if it wasn't for this forum.

[iceman]

Agree but I hope Jeff doesn't listen to Winner too much. He (Jeff) may then ask for the extra profit to be used to pay for new Directorships to increase diversity and harmoney ;)


Nice update and good work to the ST members who did the research re likely profits, it's spot on and thanks for sharing it on the forum.

[iceman]

Looks like we will have a very interesting start to trading with all shares on offer under 144c taken ! Interesting indeed

[Beagle]

Nice update and good work to the ST members who did the research re likely profits, it's spot on and thanks for sharing it on the forum.

Simple abacus comes in pretty handy eh !! Just keeping moving one little brass $1m ball over from one side to the other as the quarters tick by. $11m + $12m = $23 M for first half $13m + $14m for Q3 and Q4 respectively gives $27m for second half and $50m for the year. I suppose Jeff has to be a little conservative for full year, it is a bank after all :)...and some of that lending on dairy cows might bight them on the bum with the drought.
Very happy holder.

[ScrappyO]

Nice reaction

[stones]

Well done Heartland!!!

[dingoNZ]

Damn, if I had more cash free I'd buy more. Very happy holder :D

[percy]

[QUOTE=Roger;527915]:)...and some of that lending on dairy cows might bight them on the bum with the drought.

Roger,Roger,think banks and sharemongers.I think you should sell those shares [or cows];I think you should buy those shares [or cows].They collect commissions or attract more lending whatever happens.!!!
Droughts etc means some farmers have to sell,matched by other farmers buying using PGW saleyards and finance from Heartland..

[Schrodinger]

[QUOTE=Roger;527915]:)...and some of that lending on dairy cows might bight them on the bum with the drought.

Roger,Roger,think banks and sharemongers.I think you should sell those shares [or cows];I think you should buy those shares [or cows].They collect commissions or attract more lending whatever happens.!!!
Droughts etc means some farmers have to sell,matched by other farmers buying using PGW saleyards and finance from Heartland..

Good result here. They should be reporting strong results for the near future. Harmoney is also a nice growth option for them to wrest market share away from the big 4.

[assuming the housing market doesn't collapse...]

[Beagle]

Plenty of lending on houses...much that the Aussie banks are making bugger all margin on, (e.g. 3 years fixed at 5.59%) and then there's HER where the margin is sweet and LVR ratio's are very low :)
Where's our mate Winner69 ? - taking the day off to enjoy the profit ???
You working today Percy ?...you could give yourself the day off too :D

[winner69]

A $46m to $48m guidance is still wimpish .....hope they not managing to that

ROE of at least 10% implies at least $47m NPAT so a bit of a contradiction in $46m to $48m guidance eh boys. Jeff and Simon not concentrating enough?

Roger - if HY is $24m you little algorithm doesn't work!

[Beagle]

A $46m to $48m guidance is still wimpish .....hope they not managing to that

ROE of at least 10% implies at least $47m NPAT so a bit of a contradiction in $46m to $48m guidance eh boys. Jeff and Simon not concentrating enough?

Roger - if HY is $24m you little algorithm doesn't work!

I've got to be a little bit conservative in my line of work :)

Mate its a bank, they're conservative by nature. Just wait for the actual result and another leg up when they hit $50m.

[Harvey Specter]

A $46m to $48m guidance is still wimpish .....hope they not managing to thatSome people are never happy! ;)

[winner69]

Suppose analysts might need to update their spreadsheets now ......the pressure on them not to get too excited has to be relaxed.

Even the likes of Forbar can't come out with anything less than target.

But then again expect a SELL or at best HOLD - in view of the sudden appreciation in the share price we believe the price has got ahead of itself.

[winner69]

Some people are never happy! ;)

Maximising profits and not just managing to keep punters happy is the game

Easy to get complacent

[Beagle]

So called professional analysts are asleep at the wheel with this stock.

[couta1]

Another bright light on my portfolio up 45% along with GNE, I was going to buy another 25k shares yesterday but it looked like it may go to $1.18 today before the update and now the horse has bolted but thankful for what I hold,thanks Percy;)

[Schrodinger]

Professional? LOL

[Beagle]

http://www.nbr.co.nz/article/heartland-raises-2015-profit-forecast-asset-growth-bd-167832

[Beagle]

A $46m to $48m guidance is still wimpish .....hope they not managing to that

ROE of at least 10% implies at least $47m NPAT so a bit of a contradiction in $46m to $48m guidance eh boys. Jeff and Simon not concentrating enough?

Roger - if HY is $24m you little algorithm doesn't work!

Go and buy yourself your favourite lunch and sit by the beach, pat yourself on the back and enjoy being right. I'll be with you in spirit :)
Rome wasn't built in a day but these guys are sure laying some great foundations for a very bright future. I can't wait for the huge AIR N.Z. upgrade next month, opps did I say that out loud :D

[winner69]

Go and buy yourself your favourite lunch and sit by the beach, pat yourself on the back and enjoy being right. I'll be with you in spirit :)
Rome wasn't built in a day but these guys are sure laying some great foundations for a very bright future.

Over 30 on the beach is far too hot for oysters and chips

Need to find a bench under the trees in a cooling sea breeze

I know such a place ...on my way

[winner69]

Changed tack .....too hot for walk to beach so made myself a couple ham and avocado sandwiches and will go up the gully to see how the rata are doing.

Cooler among the trees

[RTM]

And to think I might never have bought any if it hadn't been for my PGC holding ( that I lost my shirt on when I abandoned them a few months ago). Many many thanks Percy and all the other contributors who persuaded me to stay the course.
My biggest NZ holding by some distance....and my third biggest gain after MELCA and SML.

[vin]

Stoked I topped up a couple of weeks back. My biggest holding next to AirNZ. Be interesting to see where SP stands end of this year!

[Beagle]

Stoked I topped up a couple of weeks back. My biggest holding next to AirNZ. Be interesting to see where SP stands end of this year!
Also be interesting to see which one outperforms the other. You're aiming for the same winning quinella as me :)

W69 - I topped you lunch effort mate with gourmet filled rolls from my local café, eaten under a shady tree by the beach as I watched my AIR planes landing at Auckland airport in the distance.

[winner69]

Also be interesting to see which one outperforms the other. You're aiming for the same winning quinella as me :)

W69 - I topped you lunch effort mate with gourmet filled rolls from my local café, eaten under a shady tree by the beach as I watched my AIR planes landing at Auckland airport in the distance.

Mine was more than gourmet cafe rolls

Freshly baked wholegrain bread, thick slices of ham, avocado slices, slice of havarti (would have preferred gruyere but none in the fridge), the mandatory lettuce leaf from the garden, topped with winners yummy home made mayo with a dash of mustard thrown in. Beat that

Lay under the rata. Can see your aeroplanes taking off from there as well. Very pleasant

Percy, the rata are thriving even though been very dry this summer. Percy rata doing better than Snoppy rata but both going great guns ....a bit like HNZ v PGW

[Beagle]

I think you might have just piped me there mate. I suggest we appoint you to the board of HNZ so you can help make the sandwiches at the next ASM :)

[percy]

Mine was more than gourmet cafe rolls

Freshly baked wholegrain bread, thick slices of ham, avocado slices, slice of havarti (would have preferred gruyere but none in the fridge), the mandatory lettuce leaf from the garden, topped with winners yummy home made mayo with a dash of mustard thrown in. Beat that

Lay under the rata. Can see your aeroplanes taking off from there as well. Very pleasant

Percy, the rata are thriving even though been very dry this summer. Percy rata doing better than Snoppy rata but both going great guns ....a bit like HNZ v PGW

Lunch sounds good to me at either your place or Roger's.
Thought the Snoopy Rata may be doing better, since Snoopy is now used to being under water more than me.Think ARI on ASX. lol.Good news though.And thank you for planting them.
Was not that long ago every one thought we were mad thinking HNZ would get to $1.25.
And what do we think of the future?
"More runs on the board" is now being rewarded, and reflected in the Heartland share price.
We are "well positioned."!!! lol.

[Beagle]

Yes indeed we are mate. I polished up my abacus when I got back from the beach and I'm seeing circa low to mid $60m range for 2016 about 13-14 cps.

When the market wakes up to the rate this company is growing at and realises net interest margin is nearly double that of the Aussie banks we might see a more appropriate multiple applied...suggest 13-14...so $1.70 - $2.00 not out of the question by early 2016 :) Very happy to stay on this train and enjoy the ride, toot toot !!

[noodles]

A great and unexpected result for me. Here is some more. Sounds like HER is flat. Other areas strong.
http://podcast.radionz.co.nz/business/bus-mdr-20150128-1217-heartland_upgrades_its_first-half_and_annual_profit_forecasts-048.mp3

[winner69]

I think you might have just piped me there mate. I suggest we appoint you to the board of HNZ so you can help make the sandwiches at the next ASM :)

Austerity should prevail at the ASM

Got a few more avocado to get through, there's some baby book choy in the garden. Might mix with some soba noodles and sesame seeds and a chilli dressing to have a decent salad in the lunchbox tomorrow. Was a recipe in the paper the other day.

See what you local cafe can come up with to beat that.

[Baa_Baa]

Can we all just keep this quiet, and the analysts asleep, for just a wee while longer, please, not all of us are fully loaded yet. ;) Close, but not fully. Thanks all for bringing this to our attention, it makes all the cock-a-hoop back-slapping self-congratulations so much more bearable. LOL.
:t_up:


Suppose analysts might need to update their spreadsheets now ......the pressure on them not to get too excited has to be relaxed.

Even the likes of Forbar can't come out with anything less than target.

But then again expect a SELL or at best HOLD - in view of the sudden appreciation in the share price we believe the price has got ahead of itself.

[percy]

Can we all just keep this quiet, and the analysts asleep, for just a wee while longer, please, not all of us are fully loaded yet. ;) Close, but not fully. Thanks all for bringing this to our attention, it makes all the cock-a-hoop back-slapping self-congratulations so much more bearable. LOL.
:t_up:

Don't worry young Basil,great uncle Percy Baa Baa is loaded to the gunnels.!

[Baa_Baa]

Loving it 'uncle',
:t_up:

though could we clear something up, my youth is a distant memory. I aint no young'un ... well, maybe that's just perspective, if you're already retired, I'm younger, or in a rest home, I'm young.
:(

As you're a long lost uncle, I'll flick you an invite to the family reunion where we all wear sheep heads, full body woolen cloaks, make up new sheep jokes and baaaaa endlessly about our sharepicking prowess? You in?
:eek2:

(that's a joke by the way. Promise, we don't actually wear sheep heads.)


Don't worry young Basil,great uncle Percy Baa Baa is loaded to the gunnels.!

[percy]

Loving it 'uncle',
:t_up:

though could we clear something up, my youth is a distant memory. I aint no young'un ... well, maybe that's just perspective, if you're already retired, I'm younger, or in a rest home, I'm young.
:(

As you're a long lost uncle, I'll flick you an invite to the family reunion where we all wear sheep heads, full body woolen cloaks, make up new sheep jokes and baaaaa endlessly about our sharepicking prowess? You in?
:eek2:

(that's a joke by the way. Promise, we don't actually wear sheep heads.)

Glad you took it is the way it was meant...!!
As you would expect a great uncle to be, I am a pensioner,but with daughters and grand children I have put off my retirement from selling books to school libraries,for another 35 years,or death which ever comes first.!!
Trust I remembered your first name Basil,as my memory is not what it used to be.
May just past up on the family reunion,but thanks anyway.

[Baa_Baa]

We are now one, as Borg is one, there is no escape. I will pass on your best wishes to the family. We may even send you aunty's album, great aunty Baa is a real character, she makes all the outfits and has the best jokes, but she's a lowsy sharepicker.

Though not to diminish this HNZ thread, thank you all for your patience, and I hope those who avidly 'watch from the sidelines' join in on what is emerging as one of the stockpicks. And kudos to the early holders, who unselfishly share their wisdom, expertise and guidance here, as well as a bit of levity. It makes it all worthwhile.

BAA


Glad you took it is the way it was meant...!!
As you would expect a great uncle to be, I am a pensioner,but with daughters and grand children I have put off my retirement from selling books to school libraries,for another 35 years,or death which ever comes first.!!
Trust I remembered your first name Basil,as my memory is not what it used to be.
May just past up on the family reunion,but thanks anyway.

[KiwiGekko]

I wish I had done this sooner, but finally came to my senses today and dipped my toes in after not putting my money with (all of) my stock picks.

On a slightly related note (maybe this should be in TME) - Trade Me emailed its subscribers today promoting Harmoney - when i've seen the TVC's & loaded the website it has been very responsive, but today it looked like it was getting a bit of attention & logging in was taking a fair bit of time - at least 10+ seconds! Several people I had previously mentioned Harmoney to also talked to me about receiving these emails (and then signing up), so I am guessing they're getting good conversions from that email send!

Another upside to holding HNZ.

[Master98]

I topped up at $1.15 when HNZ became normal bank on 14/01,topped up today at $1.26 when earnings upgraded, pretty sure will have another upgrade around june, intend to hold at longer term.

[winner69]

Guidance now $48m and HER is 'flat'

That's great news for when they get their act together with HER ......all the promised eps accretive stuff yet to come. Whoopee

So in Sky City accounting style 'normalised earnings' for FY15 is really way in excess of $50m .....probably $55m

Come on guys .....get the whips out and get this thing moving ....you did ay over $80m for it and diluted Percy's interest in the many quite a lot by paying some f it in shares.

[Joshuatree]

Just checked my buying price ,70c so not far from double bagging!!.And the future looks GREAT. Credit to Percy's exuberance and a few others for dropping this in front of me

[percy]

Just checked my buying price ,70c so not far from double bagging!!.And the future looks GREAT. Credit to Percy's exuberance and a few others for dropping this in front of me

Hi JT,as Hugh Hefner said to The Bunny Girl,"my pleasure."
The Reserve Bank's reduced capital requirements for Heartland,and the latest profit/trading upgrades have certainly added big "runs to the board".
I would expect we will see a number of analysts revisiting their forecasts,which will lead to more brokers being comfortable recommending Heartland to their clents.Well run BANK,growth and yield make it a compelling investment.
REL.Winner69's comments are correct. However I think HNZ's buying of the REL business was correct.Buying an established business certainly has saved them years from getting a start up REL business off the ground.The whole REL sector came off the boil a few years ago.Has not even been on simmer,just left to go cold..It will take some time to reheat the whole REL sector.Yet I see it as a huge growth sector because of NZder's cash poor,asset rich love of property.Makes excellent sense to me that Heartland have identified this growth sector and moved to buy the major player.

[Beagle]

Maths is WAY wrong mate...here let the accountant sort this for you.

125 = last years EPS 9.0 x (8.5 + 2G)

The number in the brackets must therefore be 13.89 as 13.89 x 9 = 125.
By deduction we then see 2G must be 5.39, therefore 1G = 2.7.

The current SP indicates the long term EPS growth rate using the formula is only 2.7%

Quite obviously this is silly and the long term growth rate will easily outstrip that low rate.

Looking at last years EPS growth rate and this year's forecasted growth rate and using anything like those growth rates in the Ben Graham's formula makes HNZ look like one of the most fundamentally undervalued stocks on the NZX, which it is. Brokers have EPS growth conservatively estimated at circa 10% for the next few years.
If we assume they can keep growing at that rate using the formula we get V = 9 x (8.5 + 2x10) = $2.56.
And before anyone suggests we need to use the updated B.G formula, we don't, most brokers are now moving down into the mid 4% range for long term risk free rate on the back of 10 year Govt stock rates dropping through the floor, down another 10 bps this morning, now approaching 3.5%, so using 4.4% for a 20 year risk free rate seems entirely reasonable to me.

[nextbigthing]

I see.

The maths is actually correct, our 2 versus 2.7 only comes down to the EPS figure used (I just used 10 as a more recent trailing figure). It's my interpretation of what 2.7 or 2 as G actually meant. The website I looked at stated G was a percentage, 1 being 100% and therefore 0.1 being 10%. However it is a raw percentage not a decimal, ie 2 means 2%.

[Beagle]

Fair enough mate...you lost me in your maths so I felt compelled to do my own, no offence intended :)

[Kagrok]

@nextbigthing I think g is the long term % growth, not growth in decimals. If you used % growth, your answer will be similar to Roger's.

[Beagle]

Not at all Roger! Thanks, you're quite right. The G is a % not a decimal!

All sorted then mate. I don't think using 10% is unreasonable as a 7-10 year growth rate. Its a young company and if we look at some of the very mature Australian owned banks plenty of them are still growing at that sort of rate.
Factor in with HNZ's niche product offer their net interest margin is double that of the Aussie banks, the rapidly aging population base making HER lending a compelling long term growth opportunity, (does this put HNZ is the wellness old folks healthcare sector with much higher PE's :D) and what's to stop them growing EPS at circa 10% per annum ???? (GFC Mk2 seems to be the only material risk to me).

[janner]

So far correct..

Not much action until the next report..

Take into account the overhang.. ( All ready spoken for... IMHO. )..

You have until April :-)))) Also IMHO..

Not increasing my holding.. Apart from DRP..

Having ridden this one from the early stages and not selling .. ( Aye percy )...

Feel there are other stocks available that will give better Dividend returns.. For my new SAVINGS !!....

Well the " Burst " came a little early.. ( 3 months plus wages )..

So will bring forward my April to Feb.. When the results come out.. Which will then be another " Burst ". Followed by Consolidation IMHO..

Having been in this one since the before the beginning with percy and others..

It is good to reap the rewards .. Aye percy :-))

Bottom drawer stuff for you newbies !! :-)))) IMHO.. DYOR.. :-))

[Derain]

132, all time record!:eek2:

[Beagle]

Hot off the Chch rumour mill... Uncle Percy was just seen eagerly quaffing his favourite refreshment down at his local looking very contented indeed :)

[Master98]

all major analysts price target revised to lo1.21, med1.28, hi1.35.

[winner69]

all major analysts price target revised to lo1.21, med1.28, hi1.35.

They be chasing their tail methinks

Those numbers will look stupid in a few months when share price is 160 plus

[Beagle]

They've been chasing their tail for a long time now...like little kittens or should that read pussies ?
HNZ stuck at the very bottom of their bank valuation matrix despite growing at several times the pace of some of the other Australasian banks, go figure...

[winner69]

They've been chasing their tail for a long time now...like little kittens or should that read pussies ?
HNZ stuck at the very bottom of their bank valuation matrix despite growing at several times the pace of some of the other Australasian banks, go figure...

Give them some credit .....some of those analysts have been / are influenced by Heartland themselves.

[winner69]

They've been chasing their tail for a long time now...like little kittens or should that read pussies ?
HNZ stuck at the very bottom of their bank valuation matrix despite growing at several times the pace of some of the other Australasian banks, go figure...

Give them some credit .....i have a feeling that some of those analysts have been / are influenced by Heartland themselves.

[Beagle]

Give them some credit .....some of those analysts have been / are influenced by Heartland themselves.
And are obviously bereft of an "old school" accountants abacus :)

[janner]

Well the " Burst " came a little early.. ( 3 months plus wages )..

So will bring forward my April to Feb.. When the results come out.. Which will then be another " Burst ". Followed by Consolidation IMHO..

Having been in this one since the before the beginning with percy and others..

It is good to reap the rewards .. Aye percy :-))

Bottom drawer stuff for you newbies !! :-)))) IMHO.. DYOR.. :-))

OK.. Wrong again..

Will the price rise again after my next prediction :-)))

[nextbigthing]

Hot off the Chch rumour mill... Uncle Percy was just seen eagerly quaffing his favourite refreshment down at his local looking very contented indeed :)

Apparently he is on the airline no fly list now, as his wallet is far too heavy.

[Snow Leopard]

Current market price: $1.32
Average buy price: $0.655
Average cumulative dividend $0.103 (after tax)

Current total gain: $0.768 (per share)

Best Wishes
Paper Tiger

[Beagle]

Current market price: $1.32
Average buy price: $0.655
Average cumulative dividend $0.103 (after tax)

Current total gain: $0.768 (per share)

Best Wishes
Paper Tiger

If you've got 100,000 or more shares you're on the no fly list too :)

[Baa_Baa]

HNZ's daily price action certainly is encouraging, with increasing awareness a couple of new factors have come into play. Notably volume this past week or so is double its 21d moving average, and money flow in has cranked up. The TA target from the breakout is still $1.38, (the FA's have $1.66), and it's a lot closer and sooner than expected following good news and analysts revising targets upwards. All good, it even looks like blue sky above, but is it?

6721

Well not exactly, so zooming out to the monthly view we can see that HNZ is in the 'gap zone' from the breakdown in Dec 2010. The stretch target is to close the gap from the neckline breakout at $0.95 to $2.55, that'd be nice wouldn't it, but don't expect it to go straight there, unless the FA's lose control and euphoria jumps on the pony. :)

6722

BAA

[percy]

Current market price: $1.32
Average buy price: $0.655
Average cumulative dividend $0.103 (after tax)

Current total gain: $0.768 (per share)

Best Wishes
Paper Tiger

Mildly pleased??!!!
Next you will be telling us without selling any HNZ, they now make up 15% of your portfolio down from over 25% !!!! lol.
ps.well done.

[iceman]

I wouldn't mind a bit of consolidation or pull back as PT is expecting ! Out of cash buying other shares to try to keep HNZ below the magic 25% of portfolio and sure as hell am not selling any. Consequently HNZ has crept quite a bit over the 25%. What a dilemma :scared:



Mildly pleased??!!!
Next you will be telling us without selling any HNZ, they now make up 15% of your portfolio down from over 25% !!!! lol.

[percy]

:p
I wouldn't mind a bit of consolidation or pull back as PT is expecting ! Out of cash buying other shares to try to keep HNZ below the magic 25% of portfolio and sure as hell am not selling any. Consequently HNZ has crept quite a bit over the 25%. What a dilemma :scared:

What a dilemma.!?
But take courage.
You are not alone.!!

[iceman]

Phew. I now feel content and courageous knowing I'm in such esteemed and fine company :t_up:


:p

What a dilemma.!?
But take courage.
You are not alone.!!

[Snow Leopard]

...
Well not exactly, so zooming out to the monthly view we can see that HNZ is in the 'gap zone' from the breakdown in Dec 2010. The stretch target is to close the gap from the neckline breakout at $0.95 to $2.55, that'd be nice wouldn't it, but don't expect it to go straight there, unless the FA's lose control and euphoria jumps on the pony. :)

6722

BAA

Sorry to say but your pre 1-Feb-11 prices are junk in the context of your 'squiggly line art'.

Your left hand data is for CBS Canterbury Building Society which delisted on 16-Dec-2010.

CBS became 13.0% of Building Society Holdings Ltd (along with Southern Cross Building Society [14.8%] and MARAC [72.2%]) which listed under the code BSH on 1-Feb-11 and then changed it's name to that which we know and love Heartland New Zealand Ltd on 1-Jun-11.

Best Wishes
Paper Tiger

[Snow Leopard]

Mildly pleased??!!!
Next you will be telling us without selling any HNZ, they now make up 15% of your portfolio down from over 25% !!!! lol.
ps.well done.

You know how it is, you move stuff around but:

Currently 23.1% of my NZX Portfolio (including Cash) is HNZ.
Never sold a HNZ share yet.

Best Wishes
Paper Tiger

[Baa_Baa]

Thanks PT, that's very helpful. So the charts should start in Feb 2011, which then looks like this. To update my previous post, the monthly chart that used "junk data", there is no gap to fill, it's only 'blue sky' above.

6723

cheers
BAA

[Beagle]

Thanks PT, that's very helpful. So the charts should start in Feb 2011, which then looks like this. To update my previous post, the monthly chart that used "junk data", there is no gap to fill, it's only 'blue sky' above.
6723

cheers
BAA

Speaking of Blue Sky, this seems appropriate after this week's SP performance.
https://www.youtube.com/watch?v=K01YNsa_8m8 enjoy :)

[stoploss]

Speaking of Blue Sky, this seems appropriate after this week's SP performance.
https://www.youtube.com/watch?v=K01YNsa_8m8 enjoy :)

Think this is better
https://m.youtube.com/watch?v=EmfE4KAZicY

[percy]

Come on Roger and Stoploss,don't waste our time.!!!
Go straight to The Tabernacle Choir's Hallelujah.
Watch carefully and see whether you can spot chairmans Geoff Ricketts and Bruce Irvine,,
Iceman.stay cool.

[Baa_Baa]

Very happy indeed. :t_up:

HNZ vaulted into 1st place, by value in my portfolio, ahead of my darling energy shares. That'll teach me to put up a bunch of wanna-be watchlist stocks for the 2015 contest, when my actual portfolio is killing them.

Kudos to the irrepressible Roger and Percy in particular. It's great that you selflessly share your convictions with sound analysis and it turns out to be 'on the money'.

Thanks guys.
BAA


Speaking of Blue Sky, this seems appropriate after this week's SP performance.
https://www.youtube.com/watch?v=K01YNsa_8m8 enjoy :)

[PartyPooper]

I also want to echo thanks to Percy and Snoopy on this one. I was suffering paralysis by analysis on HNZ but from reading the banter and well constructions posts, I took the dive and have the nice green 23% arrow now.

[Beagle]

We've certainly has a stellar run in January and that after a strong run-up from $1.00 at the time of the ASM on 31 October to circa $1.16 around Christmas.
A 32% SP gain in the last 3 months is a great result in anyone's books. Now all the good news is out there, unless there's some surprise I'm not aware of it won't surprise me if we see a quieter period in the next three months and this won't concern long term holders many of whom I suspect will be quite happy to collect a nice divvy and know the company is doing the business for the long haul.
Its interesting to reflect back to the day of the ASM just 3 short months ago. Those there that I spoke too thought $1.10 - $1.20, (depending on how much they'd had to drink) was a fair SP target for the stock by the time of the 2015 ASM in late 2015 and I was in that range too at that time, to be honest.

HNZ is presently trading on 13.2 times forecast 2015 earnings of 10cps and this price seems fair and reasonable to me for now. I remain of the view that's is a great long term hold on the basis that the team can deliver EPS growth over time and as they continue to deliver on their promises and continue to build their already strong credibility some modest further PE expansion is possible.

Since the ASM I've developed my understanding of the company to the point where I can see it being around $2 in due course but in my view this will take quite some time, probably, realistically, 2-3 years. I guess I feel its perhaps appropriate that somebody sounds a little note of caution to any newbie considering getting on board on the basis of very strong recent SP gains. Rome wasn't built in a day and good things take time. I think anyone expecting another 32% SP gain in the next 3 months ($1.32 growing to $1.74), is highly likely to be disappointed.

On the other hand long term investors will I remain sure, be very happy with long term SP gains and will be happy to know they're being paid well to wait for long term growth with handsome fully imputed dividends, I estimate this year at 7 cps which equates to a gross divvy yield of 7.37% for 2015 based on a SP of $1.32 and I am sure those dividends will grow over the years ahead. Everyone has their own way of investing but for what its worth I won't let any stock get to a position of being worth more than 20% of my portfolio no matter how sure I am of their long term prospects.

It concerns me a little that the company appears to be considering accounting for its profit on the Harmoney investment ? While it was more than fair of them to note that their upgraded guidance excluded any increase in the value of their Harmony stake as a result of the Trade Me investment I struggle to see where they are coming from in terms of implying that it might be acceptable to account for theoretical gains in this non-listed associate company on the basis that this is in some way connected with operational profit ? I would have thought the team would have taken professional advice from their auditors rather than leaving this as an open question is a profit upgrade announcement. You been pushing them too hard Winner 69 ? :)

[winner69]

Good post that one Roger.

I think the real incremental boost in FY16 profits will come from HER.

As Percy says they always do what they say. So to become eps accretive and to maintain a 10% roe her will be contributing a minimum of $6m to $7m. Percy says a good buy so 2016 is the year to start delivering that, and even more.

FY14 apparently had $1m odd contribution from her. That was ony a part year. Guidance says 'flat' this year whatever that means. So lets be generous and say $4m from her this year.

So $36m in 14 - add incremental $3m from her gives $39m so core business making $8m more to give $47m . (Still wimpish but that's another story)

Take that $47m and like your algorithm add say $10m growth plus $4m plus from her and hey presto FY16 guidance is in excess of $60m

That's the result on building on the good work of the last few years and doing what they say will with her. They are very well positioned to get over $60m next year.

Only a small bank so easier to make larger %age growth than the big boys.

[winner69]

Roger, And before you laugh at me and chastise me for being impatient $60m in 2016 will still only be 11% to 12% ROE .....and remember they always do what they say they will do and they laid the seed of expectations about ROE with that nice slide at the ASM

We need to keep pushing hard

(ROE est assumes no financial engineering)

[noodles]

A 32% SP gain in the last 3 months is a great result in anyone's books. Now all the good news is out there, unless there's some surprise I'm not aware of it won't surprise me if we see a quieter period in the next three months
Nice post.
An acquisition could be a catalyst for further share price movement upwards.
Additionally, I expect something special to be announced at the half year. Maybe a special dividend or a increase in the payout ratio. Prior to the recent announcement, the company was trading at a 20% premium to analysts due a high yield. This could happen again as the dividend yield is increased as a result of increased profitability and capital adequacy.

[Beagle]

I'm with you Winner on the $60M+ for 2016 and agree the HER business has heaps of potential for growth.
Yep, Noodles I agree mate. Lower capital adequacy requirements certainly gives them heaps of head-room unlike the Aussie banks :)

[JohnnyTheHorse]

Looks like some insto has an algo going on the buy side.

[nextbigthing]

Looks like some insto has an algo going on the buy side.

Johnny"TheHorse" it's Next"BigThing" here.

What makes you say it's on the buy side (other than the obvious, someone's buying...). I ask because as soon as a buyer appears for say 2000 shares it gets hit in say three parcels of say 287,1256 and 457. Wouldn't that suggest the algo is selling rather than buying, trying to feed it out in small random parcels but maintain the price and keep the sell depth looking thin, as it is this morning. These high prices are currently on small volume.

[percy]

What I find interesting is the very large volumes that have been traded over the past few months with no shareholder notices.

[Beagle]

What I find interesting is the very large volumes that have been traded over the past few months with no shareholder notices.
Yep, last couple of weeks we've often seen circa two million shares a day traded which is unusually high volume as the price has risen which we all know is a good sign for the future.

[vorno]

What I find interesting is the very large volumes that have been traded over the past few months with no shareholder notices.

Particularly the large purchases directly before a SP increase ;)

[KiwiGekko]

Yep, last couple of weeks we've often seen circa two million shares a day traded which is unusually high volume as the price has risen which we all know is a good sign for the future.

Latest announcement shows ACC have been sold down 1% of shares - maybe that has something to do with it?

[winner69]

What I find interesting is the very large volumes that have been traded over the past few months with no shareholder notices.

Right on cue ....ACC reduced holdings

Guru investors that many love .....send the jitters up some

[percy]

Just love the market.Post some statement on sharetrader and within an hour you are proved wrong.!!
Yes ACC are pretty astute.

[noodles]

Just love the market.Post some statement on sharetrader and within an hour you are proved wrong.!!
Yes ACC are pretty astute.
No doubt, they will use the funds to top up their TTK, KMD, and CAV.

[percy]

No doubt, they will use the funds to top up their TTK, KMD, and CAV.

Have they employed Couta1 ????? lol.

ps sorry Couta1,couldn't help myself.!

[Beagle]

Have they employed Couta1 ????? lol.

ps sorry Couta1,couldn't help myself.!

At least he's getting bigger in HNZ not like the so called astute ACC who have sold some, (idiots).

[percy]

Just love the 33s Heartland $1.33 and DPC 33cents.!!!!
Now have to look forward to the 43s !????? !!!

[dagoldtoof]

talked a young sibling into his first share purchase, HNZ.....Love being popular, siblings up 25% in a very short time..Expects more sage advice, yikes...

[Toasty]

talked a young sibling into his first share purchase, HNZ.....Love being popular, siblings up 25% in a very short time..Expects more sage advice, yikes...

Its always better to let them get burned first. A quick win is like an awesome intro to drugs. You keep coming back for more.

disc: not sure about being addicted to drugs reference only made anecdotally. Also a happily addicted HNZ holder thanks to Percy and Co's intro posts on ST.

[vorno]

Its always better to let them get burned first

... like GeoOP or Xero for many!

[couta1]

... like GeoOP or Xero for many!
And at least another dozen currently listed companies to boot.

[percy]

talked a young sibling into his first share purchase, HNZ.....Love being popular, siblings up 25% in a very short time..Expects more sage advice, yikes...

Well done.
Give the young sibling a couple of very good shares to choose from when he/she is ready to buy more shares,and make him/her do some research, before he/she decides which one ..

[Beagle]

Big client of mine asked me for a share tip just before Xmas...he bought heaps at $1.16...I see a little room for an increase in his bill this year :D

[Bjauck]

Big client of mine asked me for a share tip just before Xmas...he bought heaps at $1.16...I see a little room for an increase in his bill this year :D

Phew...if your tip had ended up the other way, would you have wiped his next bill ;)

[Beagle]

Phew...if your tip had ended up the other way, would you have wiped his next bill ;)

Pays to only tip what you're absolutely sure will go up lol.

[Yoda]

With this going up so quickly, can we expect a slight correction? Most analysts seem to say hold. Of course i will get the DYOR. But looking to top up,and not sure of an entrance timing , but looks like,snooze you loose just now, with lots of buyers. I only have 5% in this so thinking i need to move funds around.
I appreciate your previous posts Roger, winner et.al.

[percy]

With this going up so quickly, can we expect a slight correction? Most analysts seem to say hold. Of course i will get the DYOR. But looking to top up,and not sure of an entrance timing , but looks like,snooze you loose just now, with lots of buyers. I only have 5% in this so thinking i need to move funds around.

We all warn of the dangers of averaging down.
In this case you would be doing the opposite,averaging up! which makes sense.
When a share hits a new high,you have to ask yourself why?
The simple reason for Heartland hitting new highs is they are delivering on what they said they would do.
The market sees they laid solid foundations,and is now expecting strong growth.
It may pay you to consider drip feeding your buying.A third this month,a third in three months time and the balance in six months time.

[Jantar]

With this going up so quickly, can we expect a slight correction? Most analysts seem to say hold. Of course i will get the DYOR. But looking to top up,and not sure of an entrance timing , but looks like,snooze you loose just now, with lots of buyers. I only have 5% in this so thinking i need to move funds around.
I appreciate your previous posts Roger, winner et.al.I am also looking to top up a bit. The charts I have access to seem to suggest that HNZ is currently overbought (Relative strength very high, and currently above the top Bolinger Band). However looking back over the past year, when they have been in similar situations the dip has been rather small and instead is more like a levelling in price for a couple of weeks. I'm picking something similar may be about to happen, then the SP will continue up.

It makes it hard to pick the best time to buy, so maybe anytime is good.

[Beagle]

With this going up so quickly, can we expect a slight correction? Most analysts seem to say hold. Of course i will get the DYOR. But looking to top up,and not sure of an entrance timing , but looks like,snooze you loose just now, with lots of buyers. I only have 5% in this so thinking i need to move funds around.
I appreciate your previous posts Roger, winner et.al.

Someone asked me by pm last week whether they should use their kids money to invest @ $1.27. ( I presumed this was money for their kids tertiary education). Same advice applies this week. If you're investing for 2-3 years or longer the fact that the SP has had a good run lately isn't going to matter. That said as per post #4383 don't expect another 32% in the next three months.

[JohnnyTheHorse]

This is the strongest run its ever been on. Who knows where it will stop. Could be the top here, or could keep going much further. No sell signals anywhere though, so ride the god times.

[iceman]

I invested in HNZ for my 2 teenage daughters in 2012. Average price per share for them today, including DRP shares is 53c. My older daughter in her 2nd year at Uni has fallen so in love with her HNZ shares that she decided not to sell them to pay for her fees and instead takes extra shifts at the supermarket to top up the money received from HNZ's juicy dividends to pay the fees. I have no hesitation to suggest HNZ as a good investment for kids tertiary education as long as people are looking ahead a few years. And of course sign up to the DRP. DYOR.


Someone asked me by pm last week whether they should use their kids money to invest @ $1.27. ( I presumed this was money for their kids tertiary education). Same advice applies this week. If you're investing for 2-3 years or longer the fact that the SP has had a good run lately isn't going to matter. That said as per post #4383 don't expect another 32% in the next three months.

[winner69]

Someone asked me by pm last week whether they should use their kids money to invest @ $1.27. ( I presumed this was money for their kids tertiary education). Same advice applies this week. If you're investing for 2-3 years or longer the fact that the SP has had a good run lately isn't going to matter. That said as per post #4383 don't expect another 32% in the next three months.

It's up 7% since your post 4383 the other day

Well on the way to 32% in 3 months


That's only 170 odd

With increasing ROE and all that growth to come and HER still to come this is a classic case punters clamouring to own the bank than put money in the bank. After all HNZ always achieves what they say they will.

Simon and Jeff need to be upfront about real prospects. If they were 2 bucks by year end

[Baa_Baa]

HNZ on an intra-day basis has exceeded the TA breakout target of $1.38, also resistance, a close above this would set the new support line.

Currently @ $1.39


Thanks PT, that's very helpful. So the charts should start in Feb 2011, which then looks like this. To update my previous post, the monthly chart that used "junk data", there is no gap to fill, it's only 'blue sky' above.

6723

cheers
BAA

[Bobdn]

I invested in HNZ for my 2 teenage daughters in 2012. Average price per share for them today, including DRP shares is 53c. My older daughter in her 2nd year at Uni has fallen so in love with her HNZ shares that she decided not to sell them to pay for her fees and instead takes extra shifts at the supermarket to top up the money received from HNZ's juicy dividends to pay the fees. I have no hesitation to suggest HNZ as a good investment for kids tertiary education as long as people are looking ahead a few years. And of course sign up to the DRP. DYOR.

I know how your daughter feels. As a student I loved my RJI and BIL shares. I loved them as much as I love my ANZ, hnz, spk and cnu shares today.

However, In October 1987 they took their love away. It was a nasty break up. I was left with nothing.

[percy]

I know how your daughter feels. As a student I loved my RJI and BIL shares. I loved them as much as I love my ANZ,, spk and cnu shares today.

However, In October 1987 they took their love away. It was a nasty break up. I was left with nothing.

And Robert and Ron got knighthoods ?????????????????!!!!!

[stones]

And Robert and Ron got knighthoods ?????????????????!!!!!
Sure did Percy which for me underlines the pathetic reasoning of the honours system.

[Beagle]

It's up 7% since your post 4383 the other day

Well on the way to 32% in 3 months


That's only 170 odd

With increasing ROE and all that growth to come and HER still to come this is a classic case punters clamouring to own the bank than put money in the bank. After all HNZ always achieves what they say they will.
Simon and Jeff need to be upfront about real prospects. If they were 2 bucks by year end

Mate the post was made when it was $1.32 so maybe not up 7% depending on where the SP has already got to today but getting somewhere near that, about what someone would earn after tax by putting their money on deposit with HNZ for two years, not two minutes in the market which serves well to illustrate your other point.
No question there's plenty more growth to come over time. Classic stock to stick in the bottom draw in my opinion.

[dingoNZ]

My parcel from December is up over 25% already, best stock of my portfolio thus far. Will be deploying more into it during the dips :)

V excited for the results

[Bjauck]

I know how your daughter feels. As a student I loved my RJI and BIL shares. I loved them as much as I love my ANZ, hnz, spk and cnu shares today.

However, In October 1987 they took their love away. It was a nasty break up. I was left with nothing.

Ouch! How long did it take you to get back into the stock market?

I am not sure but I think RJI was a property investment company quite different from the likes of KIP today and BIL was a speculative investment company into asset stripping and the like? They were in the Wild West 1980's when the stock market was even more poorly regulated than today and when "full and frank disclosure" were dirty words. Today's companies you mention are different beasts with solid business turnovers - different from those 80's "flash henries".

Are people, including the local taxi drivers, starting to borrow to leverage themselves into more and more HNZ, CNU at el.? If so...then alarm bells indeed should be a'ringing!

[Beagle]

Some time back I compared how SUM were priced relative to the smallest Aussie banks, (acknowledging they're bigger than HNZ by quite a considerable margin but nonetheless the most relevant proxy for comparison).
Time for an update.
Based on Reuters consensus analyst view of earnings for the 2015 :-
BEN Bendigo bank at $13.68 has consensus 2015 earnings of 94.53 cps putting it on a forward PE of 14.48
BOQ Bank of Queensland at $13.23 has consensus 2015 earnings of 97.22 cps putting it on a forward PE of 13.60
Averaging these two gives a forward PE of 14.04.
Consensus analyst earnings guidance for HNZ has crept up from 9.9 cps to currently sit at 10.27 cps as a result of company guidance so using the average PE of the above two banks this would indicate a relative fair value for HNZ as $1.44.

[Bobdn]

March 2009, not joking. What a time to start investing. Dow Jones was just 6000.

Ps I did borrow money to invest in both cnu and gne so maybe that's a sign of bad things to come.

[Beagle]

Rumour has it that good old Uncle Percy was last seen staggering off to the Doctor asking for stronger heart pills as he can't stand the excitement :D

[axe]

Rumour has it that good old Uncle Percy was last seen staggering off to the Doctor asking for stronger heart pills as he can't stand the excitement :D

He's only staggering due to heavy wallet syndrome. :)

[percy]

Been another incredible day for me,DPC up a cent,EBO up 23 cents,and my largest holding HNZ up 5cents.
Just as well the schools are back and I have to get into book selling mode.!!

[ziggy415]

interested to hear what people think of HER and Harmoney........I,m not sure if nzers are ready to give up their homes to reverse mortgages and like wise harmoney seems to me a little suspect....its possible because of my age where banks were the only form of funding was the norm that i struggle to accept change

[vorno]

interested to hear what people think of HER and Harmoney........I,m not sure if nzers are ready to give up their homes to reverse mortgages and like wise harmoney seems to me a little suspect....its possible because of my age where banks were the only form of funding was the norm that i struggle to accept change

I've personally tried Harmoney, as an investor. The arrangement is simple and you get monthly payments. Granted sure, you're not going to get as much gain as on the sharemarket but it has a good principle.
ATM my approximated net gains for Harmoney is around 24%.

Main risk is people defaulting on their loans.

[ziggy415]

I've personally tried Harmoney, as an investor. The arrangement is simple and you get monthly payments. Granted sure, you're not going to get as much gain as on the sharemarket but it has a good principle.
ATM my approximated net gains for Harmoney is around 24%.

Main risk is people defaulting on their loans.
I know people default on loans to the banks but i just feel more uneasy with harmoney and with my age group haveing more discressionary money..ie.. kicked the missus out...and the younger generation with mortgages etc its even stephens to whether Harmoney makes money

[Joshuatree]

2 Bagger already!!!. And still my local branch looks empty and unloved most of the time. :confused:

[vorno]

I know people default on loans to the banks but i just feel more uneasy with harmoney and with my age group haveing more discressionary money..ie.. kicked the missus out...and the younger generation with mortgages etc its even stephens to whether Harmoney makes money

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

[axe]

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

Most of the top "A" loan seem to be filling up fast. Remember Harmoney clips the ticket regardless of how the loan does. With TME as a strategic partner , Harmoney should have a reasonable chance of profitability over the long run.

Good news for HNZ too.

[mouse]

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

I am a little concerned about 'debt consolidation'. Since the borrower obviously cannot pay, so they take their debt elsewhere. In the old days of course it was jolly good to have debt. You faced all sorts of problems getting into debt. I tried to persuade the old Canterbury Savings Bank to give me more cash and they told me I had to repay money. This was bad news, and I told them I was borrowing money due to not having any to speak of. Today, faced with that situation you can go elsewhere and get a 100 inch Colour TV for bringing your debt over. And can we lend you another $50,000 Sir? Funny times, Funny Money. Is it a bubble, or the printing press?

[Bobdn]

I am a little concerned about 'debt consolidation'. Since the borrower obviously cannot pay, so they take their debt elsewhere. In the old days of course it was jolly good to have debt. You faced all sorts of problems getting into debt. I tried to persuade the old Canterbury Savings Bank to give me more cash and they told me I had to repay money. This was bad news, and I told them I was borrowing money due to not having any to speak of. Today, faced with that situation you can go elsewhere and get a 100 inch Colour TV for bringing your debt over. And can we lend you another $50,000 Sir? Funny times, Funny Money. Is it a bubble, or the printing press?

Debt consolidation is very common among 20 and 30 somethings and a reasonable reason for people to go to Harmoney or standard bank. They might have credit card debt being charged at 24 per cent interest, consolidated debt could get that down to 15 per cent at a garden variety bank.

Debt consolidation doesn't really teach decent financial habits, unfortunately. In the longer term it would probably be better just to pay off the loan at the higher interest rate and avoid high interest loans in the future, so yes looks like the Canterbury Savings Bank did you a favour in the long run, Mouse.

Banks are doing really well it seems at the moment. I invested in both ANZ and HNZ at more or less the same time late last year. HNZ is just 3 per cent of my holdings where as ANZ is 8 per cent (as is Spk and CNU). My HNZ has gone up 23 per cent and my ANZ 12 per cent. I'm delighted with both outcomes - I just wish I had replaced WHS with HNZ in the stock picks ;)

[Jantar]

- I just wish I had replaced WHS with HNZ in the stock picks ;) 8 of the top 10 have HNZ in their picks :)

[winner69]

Chris Lee this week touting a 8 cent dividend from Heartland this year

Punters (esp those who compare to term deposit rates) should be happy with a 5% tax paid dividend these days from a ow risk investment,

Jeez that supports a $1.60 share price today and for the perceptive punters looking forward to growing dividends even 2 bucks

[vorno]

Anybody topping up or selling off?

PS:.... if you're selling I'll happily take them off your hands for $1.20 ;)

[Jantar]

Topped up a small amount yesterday.

[tim23]

Holding at this stage - many others have a harmoney experience to share thinking of investing

[Beagle]

Happy holder. If we get 8 cps fully imputed divvies this year, ( 11.11 cps gross) that's a gross dividend yield of 7.9% at $1.41 and if we're seeing those divvies growing at circa 10% per annum for the foreseeable future I think that's still a very compelling opportunity. It may be approaching a similar PE ratio to the small Aussie banks Bendigo and Bank of Queensland but the important difference for Kiwi's is we can claim back the imputation credits on our HNZ dividends whereas franking credits paid by those Aussie banks are useless to us. Clearly it pays real money to take a parochial approach to investing.
Edit - W69 - I think Chris Lee makes an excellent further point about how banks do really well in a low interest rate environment. Delinquencies are much lower as debt servicing is easier for borrowers whilst margins are maintained. I think some margin expansion is possible in lower interest rate environments. We also have low fuel prices which also contributes significantly towards reducing bad debts with vehicle finance as borrowers find it easier to meet their commitments...so a very positive environment for profit growth then :)

[Beagle]

I see TSB are offering ten year mortgages at 5.89% I think it was.
Yes, pretty compelling offer for investors / homeowners looking to lock in one of their biggest costs...just as well HNZ doesn't compete in that market space :)

[Bobdn]

Yes, pretty compelling offer for investors / homeowners looking to lock in one of their biggest costs...just as well HNZ doesn't compete in that market space :)

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

[KiwiGekko]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

Not sure if trolling but if not... :eek2::eek2::eek2:

[Jantar]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.
I notice it isn't one you picked in the Stock Picking contest.


115

Bobdn

WHS SPK GNE TME CNU








:D

[Beagle]

www.heartland.co.nz

[couta1]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.
I'm sure many of us could identify with this going back a year or two, think Snk/Peb/Xro/ATM etc etc, at least you listened to good noise and the noise didn't cost you big dollars like it did some of us back in those days of naievity and hype:cool: PS-Im not saying theres anything wrong with any of the stocks above (Except Snk) its just when caught up in a period of hype you end up paying far too much for a stock and sit on big paper losses for years to come with no divvys or interest and eventially having to sell and turn those big paper losses into actual losses.

[iceman]

Assuming you are not joking, I am very surprised that you wouldn´t take more care after reading the predicament you described in post 4416 !!!


I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

[Bobdn]

Fair point Iceman but HNZ is a small percentage of my portfolio although, at 2-3%, not insignificant. I lost $3000 in 1987, all I had.

Thanks for the link Roger but too late for research. I thought I'd just trust a bunch of strangers on the internet and have a flutter. As Couta points out, one can be drawn in by what is said on these forums.

Janter, yes should have put it in the stock picks but my 5 picks are a reflection what I own most of.

KiwiGecko, no not trolling. I can just be impulsive sometimes and honestly I have thought long and hard about some stock purchases and it hasn't always worked out anyway. HNZ paid nice dividends and still seemed cheap when I bought it at 1.14. I liked the idea of owning a little bank like HNZ and a big Australian bank like ANZ which is 8% of my portfolio and which I bought at it's 52 week low last month and is now getting close to reaching it's 52 week high. But for me that's just good luck rather than management of course and who knows what's going to happen. All I knew is that the NZ dollar was high, ANZ seemed inexpensive, pays nice dividends, and offers some imputation credits. I'll tell you in 10 years how that investment worked out. In the meantime, I don't have to worry about death crosses, blue crosses, or gold crosses.

I should also point out that a big chunk of my investing is through managed funds e.g. Superlife and Devon Funds. These two companies offer me a lovely combination of active and passive investing and gives my portfolio much needed diversity. Devon's Alpha Fund has returned me 20% pa over the last few years. The most important thing about my managed funds is that the money is locked away and it restricts my love of impulse buying!

[percy]

Fair point Iceman but HNZ is a small percentage of my portfolio although, at 2-3%, not insignificant. I lost $3000 in 1987, all I had.

Thanks for the link Roger but too late for research. I thought I'd just trust a bunch of strangers on the internet and have a flutter. As Couta points out, one can be drawn in by what is said on these forums.

Janter, yes should have put it in the stock picks but my 5 picks are a reflection what I own most of.

KiwiGecko, no not trolling. I can just be impulsive sometimes and honestly I have thought long and hard about some stock purchases and it hasn't always worked out anyway. HNZ paid nice dividends and still seemed cheap when I bought it at 1.14. I liked the idea of owning a little bank like HNZ and a big Australian bank like ANZ which is 8% of my portfolio and which I bought at it's 52 week low last month and is now getting close to reaching it's 52 week high. But for me that's just good luck rather than management of course and who knows what's going to happen. All I knew is that the NZ dollar was high, ANZ seemed inexpensive, pays nice dividends, and offers some imputation credits. I'll tell you in 10 years how that investment worked out. In the meantime, I don't have to worry about death crosses, blue crosses, or gold crosses.

I should also point out that a big chunk of my investing is through managed funds e.g. Superlife and Devon Funds. These two companies offer me a lovely combination of active and passive investing and gives my portfolio much needed diversity. Devon's Alpha Fund has returned me 20% pa over the last few years. The most important thing about my managed funds is that the money is locked away and it restricts my love of impulse buying!

I am pleased Devon has performed so well for you.
I am glad you understand your own limitations for impulse buying.
I find Sharetrader fantastic.I get a lot of information and new ideas and good advice from other posters.
I even find it makes me clarify my thoughts before posting.
However, if I am going to lose money,or make money, I like to understand the business very well before I invest in it.
Good research results in good returns,so I think it is most important to do your own research,and not be too influenced by what you read on internet chat sites.

[Jantar]

I lost $3000 in 1987, all I had.
.....
A lot of us who were investing back then lost heaps. On paper I lost ~$10k, but that was'nt a true reflection as shortly before the crash I pulled ~$20k and bought a new car. Most of us were expecting a correction, it was just the sheer size that caught most by suprise. Those who had investments in companies that were actually producing (Fletchers, Forest Products, Waitaki NZR etc) still came through the far side with some assets. Those who invested mainly in financials and investment companies are the ones who lost the most.

I believe that the same would happen again in the event of another major crash. Those companies that actually produce goods and/or services would survive, while those that rely on simply moving money would be the ones most affected.

[IAK]

A lot of us who were investing back then lost heaps. On paper I lost ~$10k, but that was'nt a true reflection as shortly before the crash I pulled ~$20k and bought a new car. Most of us were expecting a correction, it was just the sheer size that caught most by suprise. Those who had investments in companies that were actually producing (Fletchers, Forest Products, Waitaki NZR etc) still came through the far side with some assets. Those who invested mainly in financials and investment companies are the ones who lost the most.

I believe that the same would happen again in the event of another major crash. Those companies that actually produce goods and/or services would survive, while those that rely on simply moving money would be the ones most affected.

Excuse my ignorance but isn't Heartland Bank a financial institution? I have yet to take the plunge on this one for the very reasons you have outlined.

[Jantar]

Excuse my ignorance but isn't Heartland Bank a financial institution? I have yet to take the plunge on this one for the very reasons you have outlined.
That's why its such a small percentage of my portfolio despite the strong performance. :D

[goldfish]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

Lol, nothing wrong with that, i did it with peb when they signed there first usa insurer, had just started investing and made half a years salary in a week. Had no idea at first what i was putting my money into but everyone here seemed excited.
I did it again with ton on the asx and made decent money to before it burst.
As long as you have a tight stoploss and take profit while its there its worked well for me.
A lazy way to trade but if it works why the hell not i think.

[percy]

That's why its such a small percentage of my portfolio despite the strong performance. :D

As far as I know only one NZ listed company reports to The Reserve Bank,and that is Heartland.
I would think that would make Heartland possibly the safest listed company to invest in.in NZ.
For added protection Heartland has Fitch as its credit rating company.

[mouse]

I still don't actually know what HNZ does or what sort of bank it is. I only invested because of the noise on this thread. Has worked out well so far.

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

[winner69]

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

Well the finance guy at the time was quoted as saying getting a banking licence and calling themselves a BANK was just an marketing / advertising ploy

[Beagle]

Reserve bank is very happy with their operation, so is Fitch. Capital adequacy is fine, interest rates are at very low level's which is generally assistive in terms of making it easy for customers to service their loans , (lower level's of average loan delinquencies). I used to be "Thomas the doubter" but thankfully saw the light some time back...not as early as others but buying at 86 cents AFTER they'd received their investment grade credit rating upgrade last year was one of my most astute decisions for 2014. Barring a GFC Mk2 I see very little risk but what I do see is a company on a very reasonable PE ratio with a high dividend and excellent growth prospects.
No share is completely risk free but I reckon Its a very tough gig finding stocks with a better risk reward profile than HNZ :)

[winner69]

Heartland is a Finance Company, cunningly dressed up as a Bank. Banks go BANKrupt. Even ones who are actually Finance Companies. We could be in a bubble now, but equally be in a Black Hole, being sucked into the centre and consolidated. But the journey is pleasant and the capital growth from 50 cents amazing.

Most of old Heartland is old fashioned building societies

[Beagle]

Most of old Heartland is old fashioned building societies

Yep, that's another point well made.

[winner69]

Most of old Heartland is old fashioned building societies

Meant to add that that it appears that there has been a very high retention rate of those building society customers and a high rate of deposits rolled over when they matured.

So most of the old building society customers seem more than happy to be dealing with a BANK. If anything they probably think they are better off belong to a NZ Bank rather than say Canterbury Society

And a lot of those building society traditions like community involvement remain, if nit enhamced.

Marac might be the financial company part of the overall business but the total business is more than a finance company. Would a finance company have special plans for parents to ensure that their kids get a good education?

I think their School Fees Program is a great thing for parents and even for grandma and grandpa to make sure their lovely kids get an education - a really cool initiative

And probably those kids will be customers for life as well, and hopefully richer than mum and dad

[mouse]

A lot of us who were investing back then lost heaps. On paper I lost ~$10k, but that was'nt a true reflection as shortly before the crash I pulled ~$20k and bought a new car. Most of us were expecting a correction, it was just the sheer size that caught most by suprise. Those who had investments in companies that were actually producing (Fletchers, Forest Products, Waitaki NZR etc) still came through the far side with some assets. Those who invested mainly in financials and investment companies are the ones who lost the most.

I believe that the same would happen again in the event of another major crash. Those companies that actually produce goods and/or services would survive, while those that rely on simply moving money would be the ones most affected.

Words of Wisdom. Yet Heartland is doing well and, providing it is not your complete investment, should be OK. I remember the 1987 crash. I used to wander over to the Christchurch stock exchange in my lunch break. The latest prices were written up on the white board. One chap turned to me, 'prices can't go any lower, can they?' I was at the HK stock market crash a few years previously and knew THEY CAN. But I kept quiet. Investing is dangerous, so is getting married or eating. A bit of care is needed.

[Bjauck]

In any global market correction, I think NZ would always be more volatile. There is a higher degree of ownership of NZ stocks by overseas funds than in 1987. In addition the currency risk would exacerbate asset risk. International fund managers would need to draw down investments at a faster rate than "the market" as their clients would take fright and cash up. In addition there would be a flight to safe haven currencies, and NZ's being a commodity currency would be dumped.

I am not sure what the overseas ownership percent is for HNZ. My guess is that it is less than average for a listed NZ company.

I have several term PIE funds with Heartland and several with a big Aussie (in which I also have a shareholding). Dealing with Heartland is so much smoother and easier and the interest rate is fractionally higher too. My "personal" banker with the big Aussie can be difficult to locate with relocation, shifting days off and answerphones.

[percy]

As far as I know there are no overseas funds holding Heartland shares.
Heartland have no overseas funding.
You must be aware Australian Banks have European wholesale funding,large exposure to both Australian and NZ housing markets,have lower equity ratio than Heartland, and would put Australian interests before New Zealand's.
The out look for NZ is a lot more stable than overseas.In particular Australia has rising unemployment,poor performing manufacturing,mining ,and retail is facing huge challenges.The Australian government also faces the prospects of Tony Abbott being rolled.

[Bjauck]

As far as I know there are no overseas funds holding Heartland shares.
That sounds positive for SP appreciation in the future if o/s funds decide to buy into what proving to be a solid and successful company. Although greater volatility could result.


Heartland have no overseas funding.
One of the reasons for the higher interest rates offered on my Heartland term pies I guess.


You must be aware Australian Banks have European wholesale funding,large exposure to both Australian and NZ housing markets,have lower equity ratio than Heartland, and would put Australian interests before New Zealand's.
Yes...I am a long term holder of shares in an Aussie Bank as well. If the local subsidiaries relied on NZ funding for NZ mortgages... rates would be higher and the Auckland housing bubble would be smaller and would make less mess when/if it is burst.


The out look for NZ is a lot more stable than overseas.In particular Australia has rising unemployment,poor performing manufacturing,mining ,and retail is facing huge challenges.The Australian government also faces the prospects of Tony Abbott being rolled.
Presuming NZ's current outlook holds if there is another 1987 type scenario, do you think we could become a safe haven? My feeling is that sentiment would quickly reverse. NZ would not be a Switzerland.

[percy]

Unfortunately for us there is only one Switzerland and we would not become a second one,although some overseas people have brought land in NZ as a safe 'bolt hole.'
That said I think NZ is a lot safer country to invest in compared to most countries,ie Japan,Europa,etc.
NZ companies have very strong balance sheets and low gearing when compared to 1987.
On a personnel level, I sold most of my Australian small caps,just over a year ago, and invested the funds in more EBO,HNZ,PGW and took up IPOs MELCA,GNE and ZEL.All of these companies were on more modest ratios than the Australian companies I sold.I have also benefited from higher yields that carry full imputation credits.{And the share price growth has been huge.}

[Bobdn]

It's nice to hear stories of the 1987 crash, helps keep everything real and reinforce a sense that the good times can stop at any old time. I remember switching on Teletext on Tuesday 20 October 1987 (I had to check that date) unaware of "Black Monday" in the US. I thought that the service must have been malfunctioning because all the prices seemed wonky. This is a vivid memory.

http://www.tepapa.govt.nz/WhatsOn/exhibitions/SliceofHeaven/Exhibition/SocialWelfare/Pages/rogernomicsobject.aspx?irn=2592

On a brighter note, I'm in for the long haul with HNZ and have enrolled in the DRP.

[percy]

Most people I know lost their shirt in 1987.Those who did not, had taken out money a few weeks earlier, to either buy a house ,a car or business.I was one who thought the market would come back a little,but completely miss judged it!!!
A share club I was in, had a bank overdraft.That was all we had left!! Negative funds.We reduced the size of the club from 10 to 5,as some wanted to walk away.We increased our contributions from $50 a month to $100.It was slow going to start with,but did not take many years before we had to distribute the shares to each member as the size of our portfolio had grown to over $120,000. That meant we would have had to form a company,or some formal structure that would have involved accountants and lawyers.Would have meant every meeting would have been about structure,rather than stock picking.
There have been some great opportunities,AIA,EBO,FPH,IFT, MFT,POT,RYM,WBC to name a few.
We are now benefiting from HNZ being added to the list.

[Baa_Baa]

HNZ on an intra-day basis has exceeded the TA breakout target of $1.38 ... [snip]

A quick update on HNZ chart, showing here the monthly price, a very positive picture indeed @ $1.41 close and money flow breaking up. Now that the TA target has been exceeded, $1.38 becomes short term price support. So looking ahead with the FA target at $1.66, it suddenly seems a lot closer than when the projection was appreciatively volunteered. The parabolic curve however suggests caution for traders, though long termers won't be concerned, with monthly price support at $1.30 and solid support at $1.12 and $0.95. Must be divvi time soon.

6753

[winner69]

BaaBaa - parabolic curves as you call them often happen when dormant undervalued stocks see the light of day and get rerated

Should never has spent as much time under a $1 as it did. Now the market has woken up to what HNZ is really worth it is not surprising to see the action over the last month or so.

The half year will be good. When the detail comes up and people do their sums it will be really hard for Jeff to keep a straight face and say guidance is $46m to $48m. Full year $50m plus.

I don't know why he they are trying to keep expectations down ..... must be an ulterior motive or something but Roger will say they are just bankers and bankers are always conservative .... yeah right

Look forward to your chart in a few months baabaa

[mouse]

Most people I know lost their shirt in 1987.Those who did not, had taken out money a few weeks earlier, to either buy a house ,a car or business.I was one who thought the market would come back a little,but completely miss judged it!!!
A share club I was in, had a bank overdraft.That was all we had left!! Negative funds.We reduced the size of the club from 10 to 5,as some wanted to walk away.We increased our contributions from $50 a month to $100.It was slow going to start with,but did not take many years before we had to distribute the shares to each member as the size of our portfolio had grown to over $120,000. That meant we would have had to form a company,or some formal structure that would have involved accountants and lawyers.Would have meant every meeting would have been about structure,rather than stock picking.
There have been some great opportunities,AIA,EBO,FPH,IFT, MFT,POT,RYM,WBC to name a few.
We are now benefiting from HNZ being added to the list.

1987 was a great opportunity. To lose. Yet there were some useful ideas that came out of it. The point being, the collapse of the finance companies a few years ago, I cannot even remember the date it must have been after Lehman Brothers, was almost a re-run of 1987. Today I was at the Christchurch Cathedral. After the service I saw in Latimer Square a line of people in a queue for a free lunch. Europe is printing money, as has America and Britain? The situation is difficult but has opportunity. To win. HNZ has been fantastic as far as I am concerned.

[winner69]

NBR article

Heartland signals another strong year

Behind pay wall so you will need to pay to read

Not much new but spreading the word is good .....get more investors on board eh. Many still don't know about how well HNZ going

Jeez that Greenslade is conservative

[percy]

NBR article

Heartland signals another strong year

Behind pay wall so you will need to pay to read

Not much new but spreading the word is good .....get more investors on board eh. Many still don't know about how well HNZ going

Jeez that Greenslade is conservative

I am finding his conservatism ultra exciting !!! [and profitable] lol.

[Beagle]

NBR article

Heartland signals another strong year

Behind pay wall so you will need to pay to read

Not much new but spreading the word is good .....get more investors on board eh. Many still don't know about how well HNZ going

Jeez that Greenslade is conservative

Good that they're spreading the news.

[iceman]

There was something on interest.co.nz as well, but in the subscription newsletter so I couldn' t read it. Maybe someone can give us the goss !


Good that they're spreading the news.

[Beagle]

There was something on interest.co.nz as well, but in the subscription newsletter so I couldn' t read it. Maybe someone can give us the goss !

I couldn't help having a bit of a chuckle about NBR putting their article behind the paywall...subscribers getting value for their subs there, likewise interest.co.nz subscribers ?
Formal market announcement was late last month and Winner 69 and I were predicting the half year profit at least two months ago.
Next they'll have an article behind the paywall predicting a big uplift in half year earnings for Air to be announced late this month due to lower oil prices :lol:
Opps naughty me, I shouldn't dis them, they're a good publication...couldn't help myself...I'd better get back to work.

[Master98]

seems like HNZ is moving to correction mode.

[Beagle]

seems like HNZ is moving to consolidation mode.

Fixed that for ya :)

[Xerof]

Jeez that Greenslade is conservative Always has been, thats what Sir JA instilled in all his corporate banking teams.

Anyway, much better to see understated forecasts consistently exceeded, than overstated forecasts consistently falling short.

[winner69]

Mouse, bob and bj - can you take your chat about market collapses and banks falling over.

It's your fault that the HNZ share price collapsed today

You have given the punters the heebie jeebies ....and deserting he ship

Please .....no more frightening them.

[dingoNZ]

just another opportunity to topup chaps :D

[percy]

Well here I am reporting from Fairlie.You could say Fairlie is fairlie near the centre of Heartland NZ.
34 degrees and running hot yesterday.Lovely rain today, very cool and fairlie good book sales.
The traffic on the road from Geraldine to Fairlie carried the most traffic I have ever seen on it.Big 4 wheel drive vehicles towing boats, jet skis,racing cars,plenty of tourist buses,farm vehicles,and lots of huge freight trucks. All the cafes at Geraldine and Fairlie were flat out. All the motels had their no vacancy signs out.On our walk tonight they are still out.!The Heartland is humming.

[Baa_Baa]

... Anyway, much better to see understated forecasts consistently exceeded, than overstated forecasts consistently falling short.

Hoorah, hoorah indeed!

[mouse]

Mouse, bob and bj - can you take your chat about market collapses and banks falling over.

It's your fault that the HNZ share price collapsed today

You have given the punters the heebie jeebies ....and deserting he ship

Please .....no more frightening them.

Sorry about frightening the horses. I wonder, are we in a bubble, or a black hole. Sort of Lemming Like. People do have to be careful, yet they also have to take an opportunity. Anything under a dollar for Heartland was a good opportunity. Maybe, in a couple of years time it will be anything under two dollars was the opportunity. I am pretty pleased with Heartland. But thinking of 1987............

[Jantar]

In 1987 the stockmarket was climbing almost out of control. Inflation had been extremely high world wide and had recently dropped encouraging investors to move from fixed interest to shares.
Nothing about that period is obvious at present, and while share prices are moving ahead quickly, it is generally only quality stocks and those with good growth potential. Many just aren't moving despite having very good fundamental data.

[Bjauck]

It is not 1987, but it is 2015. The stock market has had a good run - house prices have never been higher especially in Auckland. Interest rates are low - in NZ inevitably this leads to people borrowing as much as they can afford under current interest rates, in order to leverage themselves into housing. America has been priming the pump. China has been boosting commodity prices. All good as long as the house band keeps on playing...as long as it is not "Nearer My God to thee".

This is not Heartland specific.

[enzed staffy]

house prices in Auckland and Christchurch are much higher (and a tad in queenstown) - the rest of the country - not so much.
I am aware of houses in Dunedin for example who's QV has not increased a cent in more than 10years - if anything they have gone down - this in the more affluent half of the property tree.
why? - probably because the govt is intent on removing jobs and 'centralising" in Auckland and CHCH.
yes - the SPs have been increasing of late - but this is NOT 1987- not even close

[Beagle]

Well here I am reporting from Fairlie.You could say Fairlie is fairlie near the centre of Heartland NZ.
34 degrees and running hot yesterday.Lovely rain today, very cool and fairlie good book sales.
The traffic on the road from Geraldine to Fairlie carried the most traffic I have ever seen on it.Big 4 wheel drive vehicles towing boats, jet skis,racing cars,plenty of tourist buses,farm vehicles,and lots of huge freight trucks. All the cafes at Geraldine and Fairlie were flat out. All the motels had their no vacancy signs out.On our walk tonight they are still out.!The Heartland is humming.

Some fairly good observations there :)

[winner69]

Some fairlie good observations there :)


Corrected post for you Roger

You think Heartland close to 150 by end of week ..... in spite of those guys giving some the heebie jeebies and their talk of banking and market collapses

[Beagle]

Thanks :) After two big weeks (up 12 cents and 9 cents respectively), some consolidation around the current level is a healthy thing mate. Rumour has it if it goes up at a fast pace again this week poor old Uncle Percy will have to have an operation to fit a pacemaker, so seeing as that's a fairly invasive procedure we better have a quiet week then :)

[Bjauck]

Corrected post for you Roger

You think Heartland close to 150 by end of week ..... in spite of those guys giving some the heebie jeebies and their talk of banking and market collapses

Just to clarify...If there is a market downturn in 2015, I think it would be more of a correction or consolidation phase. I am still in the HNZ DRiP and topped up my HNZ holding in early January and it is now my second largest holding after IFT. My opinion only; I am not a professional accountant or economist so you need to give my musings less consideration than some of the other posters!

[Bjauck]

house prices in Auckland and Christchurch are much higher (and a tad in queenstown) - the rest of the country - not so much.
I am aware of houses in Dunedin for example who's QV has not increased a cent in more than 10years - if anything they have gone down - this in the more affluent half of the property tree.
why? - probably because the govt is intent on removing jobs and 'centralising" in Auckland and CHCH.
yes - the SPs have been increasing of late - but this is NOT 1987- not even close

Even this government may be starting to take the situation seriously: "Bill English: Skyrocketing house prices can't go on forever" http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11399536

This comes after the Reserve Bank Governor gave his own warning: "The more that house prices get out of line with historic relativities, the greater the risk of a sharp correction, leading to financial instability."

Not 1987 - and nobody wants another 1987* - but still salutary comments nevertheless. And being a financial company, it is difficult to see how HNZ would not be affected by any financial instability.

*Actually not true...those who cash up prior to a downturn will seize the opportunity to buy oversold assets.

[gv1]

How long they have been saying this... well before the last election. And what happen to the house price..it has tripled after that. They have to either spread immigrants throughout the country or release more land.

[vorno]

Every 8 years - check the graphs.

[percy]

Thanks :) After two big weeks (up 12 cents and 9 cents respectively), some consolidation around the current level is a healthy thing mate. Rumour has it if it goes up at a fast pace again this week poor old Uncle Percy will have to have an operation to fit a pacemaker, so seeing as that's a fairly invasive procedure we better have a quiet week then :)

Haven't had a heart pacemaker fitted,but brought myself a "flash" new pair of running shoes, to keep pace with the Heartland share price!!!
Looking forward to Heartland share price doubling.!!!!!!!!!!!!!!!!!!
Not sure whether it will take two,three or five years??
It will happen!!!
But in the meantime I will enjoy the increasing dividends.!!!

[stoploss]

Roger , you may find this of interest , I know you have done comparisons of HNZ with the small Aussie banks .

http://www.investordaily.com.au/37037-australian-banks-stocks-unsustainable?utm_source=InvestorDaily&utm_campaign=InvestorDaily_Bulletin11_02_2015&utm_medium=email

[Beagle]

Roger , you may find this of interest , I know you have done comparisons of HNZ with the small Aussie banks .

http://www.investordaily.com.au/37037-australian-banks-stocks-unsustainable?utm_source=InvestorDaily&utm_campaign=InvestorDaily_Bulletin11_02_2015&utm_medium=email

Thanks. Funny you bring that up as I was just looking at their forecasted PE's yesterday. Any comparison needs to take into consideration the relevant growth rate of the various companies EPS and relative risk. Some consolidation for HNZ around current level's is healthy.

[percy]

Thanks. Funny you bring that up as I was just looking at their forecasted PE's yesterday. Any comparison needs to take into consideration the relevant growth rate of the various companies EPS and relative risk. Some consolidation for HNZ around current level's is healthy.

Well I took it to point out the potential problems the Aussie banks have with their over exposure to the housing markets.

[Beagle]

Well I took it to point out the potential problems the Aussie banks have with their over exposure to the housing markets.
Yep, lots of risks with the Australian economy. I think we're better positioned in N.Z. :)

[janner]

Well I took it to point out the potential problems the Aussie banks have with their over exposure to the housing markets.

Just like HNZ is percy.. Yeah right.. :-))

[noodles]

Looks like HNZ has one less competitor for the GE Money assets
http://www.asx.com.au/asxpdf/20150212/pdf/42wkdf8j8nht1k.pdf

[Beagle]

Nice to see some decent volume back in the stock today.

[winner69]

Nice to see some decent volume back in the stock today.

But its not going up

Seeing SKC get away with 'normalised' things which has a positive imoact on the share price and gives everybody the warm fuzzies I think Simon has to start 'normalising' things as well and report say $25m this half in the headlines

To keep it going they need something new ...... how about "Normalised take up of home equity release loans' - always higher than actual of course but if things had gone to normal expectations $25m would have been the number

Like it

[Beagle]

It's not going down either Winner, which given its recent gains is a pretty good sign.

Good news comes in threes they say. First was the capital requirement, second was the profit upgrade, third must be the next acquisition :D

Disc Hold.

Nicely said mate.

At grave risk of sounding like a broken record, some consolidation around the current level (after such strong recent gains), is a healthy thing.

[Snoopy]

Wolf - I took the interest margin of 4.44%‰ from the preso with full year results

http://www.sharetrader.co.nz/attachment.php?attachmentid=6474&stc=1&d=1416083026

Impressive looking chart eh. All they have recently said and shown in presentations suggest it going to get better, although the increase probably wont be as great as the last few years

But even so just another 0.1% point increase is another $3m in NOI

I am curious about this ever improving net interest margin of Heartland. Is there a way to calculate what is happening to the net interest margin without waiting for Heartland's annual slide presrentation?

The reserve bank has a collective margin table for all NZ banks

http://www.rbnz.govt.nz/statistics/tables/s20/

For the June 2014 quarter they list the net interest margin averaged over all 23 registered banks. So I guess those banks have suppied the reserve bank sufficient information to calculate it. But is there sufficient information on the net for Joe share investor to do the same?

'Investorwords' defines the net interest margin as follows:

"The dollar difference between interest income and interest expenses, usually expressed as a percentage of average earning assets"

(http://www.investorwords.com/3249/net_interest_margin.html)

The Heartland disclosure statement for FY2014 is here.

http://www.heartland.co.nz/uploadGallery/Legal/Heartland%20Bank%20disclosure%20statement%20Jun14. pdf

Note 8 from the Heartland declaration has:

1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m

The dollar difference on those two is $106.442m.

Now I can't see what the 'average earning assets' are, and these would not normally be declared at 'snapshot report time'. But if you go to the balance sheet, the 'end of year financial receivables' (a proxy for the average?) are $1,985.119m.

$106.442m / $1,985.119m = 5.36%

That is rather higher than the 4.44% quoted in Heartland's own chart. But not far enough out to indicate that I am totally going down the wrong road.

Since net interest margin seems to be one of the keys to Heartland going forwards, can anyone make a better fist of this calculation than I have?


SNOOPY

[Xerof]

two suggestions Snoopdog -

Firstly, take the average of opening and closing receivables, rather than just the closing.

Second, and I find this one easiest - take their word for it when they say 4.44%

[percy]

two suggestions Snoopdog -

Firstly, take the average of opening and closing receivables, rather than just the closing.

Second, and I find this one easiest - take their word for it when they say 4.44%

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.

[dingoNZ]

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.

Sounds like you already have him on speed dial :D

[Jantar]

But wait !!!! There is another way!!!!
Phone CFO Simon Owen [09] 927 9151 and ask him.
Lol. Ask a banker a question and expect to be told the truth? That is good. :t_up:

[percy]

Lol. Ask a banker a question and expect to be told the truth? That is good. :t_up:

I have spoken to and asked questions of the following Heartland people.
Bruce Irvine,Director.Returns phone calls and gives straight answers.
Simon Owen,CFO.Plain clear answers.
Craig Stephen.Has since left HNZ.Went out of his way to give me clear answers,and guidance.

[winner69]

oh percy .... Allison will be shattered that you forgot her

still have time to send her a red rose for valentines day

[Snow Leopard]

...Now I can't see what the 'average earning assets' are, and these would not normally be declared at 'snapshot report time'. But if you go to the balance sheet, the 'end of year financial receivables' (a proxy for the average?) are $1,985.119m...

plus cash & equivalents
plus investments
plus whatever else produces interest

Do not know how close that will get you but give it a go.

Best Wishes
Paper Tiger

[vorno]

...
Craig Stephen.Has since left HNZ.Went out of his way to give me clear answers,and guidance.

What, pray tell was the guidance given Sir Percy?

[percy]

What, pray tell was the guidance given Sir Percy?

One of the most telling bits of information Craig gave me was they had less trouble with car loans, than they did with house mortgages!
People need their car to get to work.No work,no income.
Other bits and pieces was more helping me understanding their balance sheet. The fact that Heartland's equity ratio,and liquidity was extremely strong. Other guidance, was that they were looking for margin rather than growing the lending book.Replacing low margin mortgage lending with more profitable products.Also how they were servicing Timaru successfully from Ashburton,rather than Christchurch.
W69..Yes Allison is very pleasant to talk to.I have only spoken to her when I have rung Jeff Greenslade,to congratulate him on achieving yet another milestone .Appears Jeff is very lucky to have her as a PA.

[mouse]

My view is that housing is overrated as an investment. Plus thousands of Bank dollars are tied up with one loan. Cars, a higher interest rate plus a shorter term. The problem with cars is their electronics fail and the car has died. But that is the borrowers problem, not the banks. We then get a loan history of borrowers. Do we give them a better rate?, I dont know. Maybe we should.
Then we come to Earthmovers, etc. Business down, cant pay. Repossess the beast. Sell it if you can. If not, sell it overseas. But it is difficult to export a large building made of concrete. A bit of a 'stuck' asset.

[Snoopy]

I am curious about this ever improving net interest margin of Heartland. Is there a way to calculate what is happening to the net interest margin without waiting for Heartland's annual slide presrentation?

The reserve bank has a collective margin table for all NZ banks

http://www.rbnz.govt.nz/statistics/tables/s20/

For the June 2014 quarter they list the net interest margin averaged over all 23 registered banks. So I guess those banks have suppied the reserve bank sufficient information to calculate it. But is there sufficient information on the net for Joe share investor to do the same?

'Investorwords' defines the net interest margin as follows:

"The dollar difference between interest income and interest expenses, usually expressed as a percentage of average earning assets"

(http://www.investorwords.com/3249/net_interest_margin.html)

The Heartland disclosure statement for FY2014 is here.

http://www.heartland.co.nz/uploadGallery/Legal/Heartland%20Bank%20disclosure%20statement%20Jun14. pdf

Note 8 from the Heartland declaration has:

1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m

The dollar difference on those two is $106.442m.

Now I can't see what the 'average earning assets' are, and these would not normally be declared at 'snapshot report time'. But if you go to the balance sheet, the 'end of year financial receivables' (a proxy for the average?) are $1,985.119m.

$106.442m / $1,985.119m = 5.36%

That is rather higher than the 4.44% quoted in Heartland's own chart. But not far enough out to indicate that I am totally going down the wrong road.

Since net interest margin seems to be one of the keys to Heartland going forwards, can anyone make a better fist of this calculation than I have?


Thanks for the constructive tweaks suggested by Xerof and PT. Now to rerun the figures as per these suggestions.

Unchanged from before: Note 8 from the Heartland declaration has:

1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m

The dollar difference on those two is $106.442m.

Now we will figure out the average asset book as estimated from the EOFY2013 and EOFY2014 figures



EOFY2014EOFY2013Average


Cash/Cash Equivalents$34.588m$172.777m$103.683m


Investments$238.859m$165.223m$202.041m


Investment Properties$24.888m$58.287m$41.588m


Finance Receivables$1,985.119m$2,010.376m$1,997.748m


Total$2,345.060m



$106.442m / $2,345.060m = 4.54%

That is just higher than the 4.44% quoted in Heartland's own chart. But given I don't have the data that Heartland have on actual average assets under management, this is as close as I'm going to get on the figures provided. Thanks guys.

SNOOPY

[Snoopy]

Thanks for the constructive tweaks suggested by Xerof and PT. Now to rerun the figures as per these suggestions.

Unchanged from before: Note 8 from the Heartland declaration has:

1/ the 'total interest income' at $200.141m and
2/ the 'total interest expense' at $93.719m

The dollar difference on those two is $106.442m.

Now we will figure out the average asset book as estimated from the EOFY2013 and EOFY2014 figures



EOFY2014EOFY2013Average


Cash/Cash Equivalents$34.588m$172.777m$103.683m


Investments$238.859m$165.223m$202.041m


Investment Properties$24.888m$58.287m$41.588m


Finance Receivables$1,985.119m$2,010.376m$1,997.748m


Total$2,345.060m



$106.442m / $2,345.060m = 4.54%



Now the interesting stuff starts. Calculating the net interest margin that Heartland hasn't told you about yet :-).
The figures below are for Q1 FY2015

Note 5 from the Heartland declaration has:

1/ the 'total interest income' at $52.037m and
2/ the 'total interest expense' at $23.100m

The dollar difference on those two is $28.937m.

Now we will figure out the average asset book as estimated from the EOFY2014 and EOFQY2015 figures



EOFY2014EOFQY2015Average


Cash/Cash Equivalents$34.588m$37.805m$36.197m


Investments$238.859m$241.289m$240.074m


Investment Properties$24.888m$23.150m$24.019m


Finance Receivables$1,985.119m$2,047.011$2,016.065m


Total$2,316.355m



Annualising that result

4 x $28.937m / $2,316.355m = 5.00%

That means if Heartland can annualize the quarterly improvement, they will lift their net interest marging by a half percentage pount over FY2014. That represents a potential 20% improvement.

SNOOPY

[winner69]

Snoopy ....they probably time weight things as well but your FY14 is pretty close to what they say.

Also if you used RB report for Q1 it only applies to heartland Bank and doesn't include her.

So if margins did expand by 0.5% that's an extra $12m on the bottom line

So $36m plus $12m plus say growth $4m is well in excess of their $45m to $47m guidance

Wonder whose right or whose kidding who

[noodles]

I think Heartland has hit the big time now. Just received my first Heartland Bank email phishing scam. This is a positive development for Heartland. Even the scammers are following them:)

[Beagle]

http://www.heartland.co.nz/content/investors/savings-accounts/heartland-direct-call-account.aspx

New product called direct call paying market leading interest rate.

[Tomtom]

My view is that housing is overrated as an investment. Plus thousands of Bank dollars are tied up with one loan. Cars, a higher interest rate plus a shorter term. The problem with cars is their electronics fail and the car has died. But that is the borrowers problem, not the banks. We then get a loan history of borrowers. Do we give them a better rate?, I dont know. Maybe we should.
Then we come to Earthmovers, etc. Business down, cant pay. Repossess the beast. Sell it if you can. If not, sell it overseas. But it is difficult to export a large building made of concrete. A bit of a 'stuck' asset. I seem to remember reading that sub-prime car loans have often outperformed home loans in terms of delinquencies because owners realise owning a car to get to work is essential even if you end up moving to a rental dwelling or similar. That said we've not has a large house price decline in New Zealand in many years.

[Bjauck]

http://www.heartland.co.nz/content/investors/savings-accounts/heartland-direct-call-account.aspx

New product called direct call paying market leading interest rate.

That is an appealing product. 4.5%pa for on on call account with easy withdrawal to a nominated account. My Heartland 12 month term pie is paying 4.6% so this direct call account is only paying 0.1% less than that. The Heartland Cash PIE only pays 4.0% pa with withdrawals taking some time to be processed. I would like to see Heartland introduce a PIE version of the direct call account.

For comparison, the ANZ online a/c & Cash PIE fund currently pay 3.0% pa.
Disc: Investor and account holder in both HNZ and ANZ

[vorno]

That is an appealing product. 4.5%pa for on on call account with easy withdrawal to a nominated account. My Heartland 12 month term pie is paying 4.6% so this direct call account is only paying 0.1% less than that. The Heartland Cash PIE only pays 4.0% pa with withdrawals taking some time to be processed. I would like to see Heartland introduce a PIE version of the direct call account.

For comparison, the ANZ online a/c & Cash PIE fund currently pay 3.0% pa.
Disc: Investor and account holder in both HNZ and ANZ

Strange... they introduce an account that actively beats all of their other accounts. I guess I'll be opening one!

[nextbigthing]

That is an appealing product. 4.5%pa for on on call account with easy withdrawal to a nominated account. My Heartland 12 month term pie is paying 4.6% so this direct call account is only paying 0.1% less than that. The Heartland Cash PIE only pays 4.0% pa with withdrawals taking some time to be processed. I would like to see Heartland introduce a PIE version of the direct call account.

For comparison, the ANZ online a/c & Cash PIE fund currently pay 3.0% pa.
Disc: Investor and account holder in both HNZ and ANZ

Has uncle Percy signed off on this frivolous rate of interest?

[percy]

Has uncle Percy signed off on this frivolous rate of interest?

Seems a lot to pay for on call money?
Westpac were quoting me 3.5% for 90days [and that was over$50,000].!!!

[Beagle]

Seems a lot to pay for on call money?
Westpac were quoting me 3.5% for 90days [and that was over$50,000].!!!

Probably an opening special to generate more business...and it will. I'd expect it won't be long before they get a flood of money and we see that rate trimmed down to circa 4%.

[nextbigthing]

Seems a lot to pay for on call money?
Westpac were quoting me 3.5% for 90days [and that was over$50,000].!!!

You'd be better off just putting that into the shares Percy. You should know that!!!

[percy]

You'd be better off just putting that into the shares Percy. You should know that!!!

Nice to take a bit off the top at times,when the markets have been so kind to me over the past 2 or 3 years.
.

[Citizen Erased]

Probably an opening special to generate more business...and it will. I'd expect it won't be long before they get a flood of money and we see that rate trimmed down to circa 4%.

Possibly. Before this offer came along the best rate for an online call account was 4.3% from RaboDirect and Westpac. RaboDirect recently dropped theirs from 4.6%.
http://www.interest.co.nz/saving/e-saver-online

[Beagle]

Possibly. Before this offer came along the best rate for an online call account was 4.3% from RaboDirect and Westpac. RaboDirect recently dropped theirs from 4.6%.
http://www.interest.co.nz/saving/e-saver-online

Smart move on their part sending out a brochure and application form to all shareholders.

[K1W1G0LD]

Pssst, the Elefunk is back in the room, and Noo its not that LOSER Moose............................................. ...this one is too good to ignore any longer..........."The Little Bank that could" I'll call it and I'm all loaded up and ready to BOOGIE.

[Bobdn]

i will be opening one with them and moving my holding cash from the aussie banks, win win for shareholders good rate and they can use the funds to expand

I have shares in HNZ so that's enough exposure for me to the business of HNZ. I'll keep the rest of my cash in the ANZ which has AA- credit rating (ie "very strong") vs HNZ with it's BBB rating ie "adequate".

I'm sure HNZ is a very good business but as I said, I have enough exposure to it. But hey, each to their own.

[Grimy]

I'll open a direct call account with them. Better interest rate (at present) than my ANZ Securities on call account. Much better than my bank account (ANZ-0%). I never have that much money in an on call account, but I have HNZ shares, had money in Marac and haven't been let down yet.

[Baa_Baa]

Looking forward to HNZ HY report tomorrow. The sp has consolidated short term nicely, perfectly backtesting the $1.36 breakout target from Jan16 and indicators softened from recent extremes. Poised now to respond to announcements.

7111

BAA

[Beagle]

Yep, plenty to get this old dog's teeth into next week. HNZ Monday, Genesis and PGW Tuesday and AIR Wednesday. Thankfully I don't cover SUM anymore otherwise my abacus would have overheated on Tuesday.

[YoungBuck]

Hey guys, I've been reading ShareTrader for a few months now and have only just registered. Just want to let you know that I really appreciate the depth and insight you guys have given. Its really helped me get my bearings in the sharemarket (I have only been investing for half a year now).

Just wanting to ask if you use or know of any other good websites/resources/books that I can use to help me research further on my own?

Cheers

[stoploss]

Hey guys, I've been reading ShareTrader for a few months now and have only just registered. Just want to let you know that I really appreciate the depth and insight you guys have given. Its really helped me get my bearings in the sharemarket (I have only been investing for half a year now).

Just wanting to ask if you use or know of any other good websites/resources/books that I can use to help me research further on my own?

Cheers
these books you should be able to find via UKbookdepositry.com. ( free delivery )
Market Wizards (the first one )
beating the street ( Peter Lynch)
How to make money in stocks ( William j O'neil)

[YoungBuck]

Thanks mate, will read.

[iceman]

Welcome to the forum.
I highly recommend Benjamin Graham's book The Intelligent Investor. I read and refer to it regularly and find it enormously helpful. Use that and other books to broaden your knowledge, ditto this forum, but always DYOR before investing. Always be very clear in your own mind about WHY you invested in any particular company.
Good luck with your investing. It is fun !


Hey guys, I've been reading ShareTrader for a few months now and have only just registered. Just want to let you know that I really appreciate the depth and insight you guys have given. Its really helped me get my bearings in the sharemarket (I have only been investing for half a year now).

Just wanting to ask if you use or know of any other good websites/resources/books that I can use to help me research further on my own?

Cheers

[babymonster]

$23.5 Million... well done...

[brend]

$23.5 Million... well done...

also any increased interim dividend to 3cents ps