HGH - Heartland Group Holdings

[Snoopy]

Thanks, Snoopy.

A couple more remarks on my second numerical example. This is the one where the couple take out their maximum REL loan at aged 65 and continue to live in the house until aged 95 (Example 2). On the surface this results in a much worse loss than the 85 year old couple taking out a maximum (double the size) mortgage and living in the house until they are 95 (Example 1). However, the probability of a couple living in a house for 30 years is actually much less.

A doctor told an elderly relative of mine that if they made 85 their life expectancy was two years. But if they made it to 87 their life expectancy was another two years. And so on. The message here was that once you get to that 85 year threshold, it will probably take a significant health event (e.g. stroke or heart attack) to finish you off. But to get to 85 in the first place, you must have looked after yourself, oh and and chosen your parents well. There are plenty of folk aged between 65 and 85 that end up being not so lucky.

The second point in Example 2 is that after 30 years, what started out as a million dollar house ended up not being quite a million dollar house after all that time. Some may think that a laughable assumption, but I don't think so. The current property boom has been fuelled by lifetime low interest rates, families funnelling dual incomes into their mortgages, not just one, and houses getting more expensive because they are getting bigger. None of these trends are sustainable and extrapolatable going forwards. In the long term, you can't have house prices going higher and higher when wages are not increasing in line with house affordability. Politically a house price crash today of around 50% to correct this would not be acceptable. So the only way out is a more modest crash and wages gradually catching up with prices over a generation. I believe that my house price line as detailed in Example 2 is realistic. Consequently I think Heartland's main risk in REL mortgages is in those longer term loans. Fortunately for shareholders, I don't think there will be many running over 30 years!

SNOOPY

[bull....]

ben au is in competition with hgh in aus and they had some good takeaways in there result

[percy]

ben au is in competition with hgh in aus and they had some good takeaways in there result

Where are they in competition with HGH.?

[BlackPeter]

ben au is in competition with hgh in aus and they had some good takeaways in there result

Well, yes - market appeared to be unhappy about their latest results and presentation - didn't it? Never good if a results presentation starts with problems ... the punters want to see happy faces and fireworks!

Not quite sure how comparable they are to HGH's REL busness in Australia - their "homesure" is no REL, isn't it? Still - interesting reading, cheers.

[bull....]

Where are they in competition with HGH.?

guess the competition is that it is a alternative to a rel , the punter gets bascally the same thing some money

[Beagle]

I think HGH needs to adapt their REL lending model to the changing conditions in Australia. Lowering the lending limits by 10% across the board at the various age points would appear to be a prudent move, along with ensuring any valuation used on new lending on a house is current (within 30 days).

[percy]

They have a history of reading the market,so I would expect they have already done so.

[winner69]

I got a few of those Heartland Notes mid 2017 - the ones at 4.5% pa maturing 2022

The heartland share price was about $1.80/$1.90 at the time.

Sold the Notes the other day for a healthy capital gain of 30% odd (at 3.3%)....in the same period the share price is down 30%. Sometimes Notes/Bonds are a better bet than shares ...weird eh

Might buy some more Heartland shares with the winnings....maybe

[peat]

I'm largely out now, given the gartley failed by hitting 1:31 , so I am back to my very modest holding - lost 5c plus bro. way it goes. c'est la vie.
it didnt behave at all as it should if the gartley was to be effective - they should bounce strongly off the potential reversal zone and this one never did so I had the heebies quite quickly and should've bailed even earlier but 5c is nothing these days huh .
see ZEL for a gartley that worked.

[winner69]

Good day on the bourse for Heartland

Half year announcement tomorrow — some already know it’s good or just punters having a punt.

Whatever Heartland’s long run half yearly profit growth will continue ....even though WINX.AU has a longer winning streak.

[Balance]

Good day on the bourse for Heartland

Half year announcement tomorrow — some already know it’s good or just punters having a punt.

Whatever Heartland’s long run half yearly profit growth will continue ....even though WINX.AU has a longer winning streak.

Bets off the table from the sellers today?

I sense the capital raising is on.

[percy]

Bets off the table from the sellers today?

I sense the capital raising is on.

Strong growth.= capital raise.
No growth= No capital raise.
So I agree with you,ie capital raise.


ps One for one at $1.25 to take out both UDC and TRA,and to support huge Australian REL growth...lol.
Bring it on..!!

[Balance]

Strong growth.= capital raise.
No growth= No capital raise.
So I agree with you,ie capital raise.


ps One for one at $1.25 to take out both UDC and TRA,and to support huge Australian REL growth...lol.
Bring it on..!!

1:5 at $1.00 underwritten - that's my pick.

Announcement of capital raise will not impact on sp as already factored in imo.

[horus1]

1:15 at 1.25 is my guess.

[macduffy]

1:15 at 1.25 is my guess.

One for 15 would be a relatively small issue. I would expect something a bit more substantial - say 1:5, at a small discount and underwritten.

Disc: Not holding.

[winner69]

So Percy says cap raise might be $700m

Balance suggests $113m

Horus a miserly $47m ...hardly worth the effort

Doesn’t seem that long ago they were crowing about having far too much capital and were going to give us some back.

[winner69]

Be hilarious if Jeff came out and said the Board considers the shares are far too cheap and the market doesn’t appreciate their growth strategy .....and announce a share buy back

[Balance]

So Percy says cap raise might be $700m

Balance suggests $113m

Horus a miserly $47m ...hardly worth the effort

Doesn’t seem that long ago they were crowing about having far too much capital and were going to give us some back.

Percy could well be on the mark - do a big one and be done with it. Can only see underwriters being prepared to do a 3:5 however myself so call it $250m via a heavily discounted 75c issue price.

There is definitely something in the air?

And it is not the smell from my brand new socks!

[winner69]

Bankers have always been slackers when it comes to getting to work on time.

Today is the day isn’t it?

[minimoke]

My money is on a substantial capital raise. It will be just the detail that will be interesting.

[bull....]

no div increase my pick with an announcement that future capital provisions might mean lower divs going forward , shares smashed unfortunatley ... hope im wrong i own a few

[Beagle]

Bankers have always been slackers when it comes to getting to work on time.

Today is the day isn’t it?

Don't see why they can't release the info at 8.30 so people can get a good look at it. Delayed my walk this morning for this.

[freddagg]

Bankers have always been slackers when it comes to getting to work on time.

Today is the day isn’t it?

https://shareholders.heartland.co.nz/?m

[bull....]

no div increase and a profit downgrade

[winner69]

Jeez ....a profit downgrade ...bloody hell

And H1 EPS lower than last year

Has Jeff run out of things to get out of the bottom drawer?

[Beagle]

2.1m in one off costs relating to capital restructure, listing on the ASX and unfavourable FX rate. Strip that out and the result looks pretty good. Remember these are one off costs and non recurring.
"In the absence of an unanticipated increase in growth or an acquisition, the Group has no current need to raise equity from shareholders other than thorough the Dividend Reinvestment Plan. A combination of retained earnings reinvested through the Dividend Reinvestment Plan and other sources are sufficient for funding business as usual growth".
$74m guidance, mid point represents 13.1 cps. Normalised for removal of one-off's above that would be 13.44 cps. Normalised the company is on a forward PE of just 10.0 As cheap as it has been in many years.
No capital raise ! Happy to hold as on the current price I think the shares are very cheap.

[Balance]

2.1m in one off costs relating to capital restructure, listing on the ASX and unfavourable FX rate. Strip that out and the result looks pretty good. Remember these are one off costs and non recurring.
"In the absence of an unanticipated increase in growth or an acquisition, the Group has no current need to raise equity from shareholders other than thorough the Dividend Reinvestment Plan. A combination of retained earnings reinvested through the Dividend Reinvestment Plan and other sources are sufficient for funding business as usual growth".
$74m guidance, mid point represents 13.1 cps. Normalised for removal of one-off's above that would be 13.44 cps. Normalised the company is on a forward PE of just 10.0 As cheap as it has been in many years.
No capital raise ! Happy to hold as on the current price I think the shares are very cheap.

Looks ok, especially no capital raise but I think this will continue to be an issue for the market - question of when, not if?

Downgrade has been anticipated by some in the market but probably not all.

[minimoke]

no div increase and a profit downgrade"Whilst Heartland considers that it could still achieve a result at thebottom end of guidance, it would come at a cost to further investment in growth. Accordingly, anupdated guidance range of $73 million to $75 million is now considered prudent. The midpoint of thatrange would see the delivery of approximately 10% NPAT growth for FY19 compared to FY18."

[bull....]

"Whilst Heartland considers that it could still achieve a result at thebottom end of guidance, it would come at a cost to further investment in growth. Accordingly, anupdated guidance range of $73 million to $75 million is now considered prudent. The midpoint of thatrange would see the delivery of approximately 10% NPAT growth for FY19 compared to FY18."

i prefer companies that invest for growth

[winner69]

Beagle ..I thought you didn’t really approve of ‘normalising’ things

What’s the next ‘non-recurring’ item going to be?

[percy]

Today is the day that yesterday we worried about,and all is well.
Steady divie,
Solid growth,
No need for extra capital.
Profit affected by "break fees" for the restructure and new IFRS9 impairments methodolgy.
Aussie REL growth 24.9%
Open for business growth 56.2%.
Good seeing large Rural and business loans being reduced.Good risk management.
Motor Vehicle lending still strong.
Very positve outlook.

[winner69]

"Whilst Heartland considers that it could still achieve a result at thebottom end of guidance, it would come at a cost to further investment in growth. Accordingly, an updated guidance range of $73 million to $75 million is now considered prudent. The midpoint of that range would see the delivery of approximately 10% NPAT growth for FY19 compared to FY18."

That’s one weird statement ....not really that good if you think it through

[Mickey]

Today is the day that yesterday we worried about,and all is well.
Steady divie,
Solid growth,
No need for extra capital.
Profit affected by "break fees" for the restructure and new IFRS9 impairments metodolgy.
Aussie REL growth 24.9%
Open for business growth 56.2%.
Good seeing large Rural and business loans being reduced.Good risk management.
Motor Vehicle lending still strong.
Very positve outlook.

I agree Percy. A good 'steady as she goes' result and if the one off costs are removed - it looks even better. A long term hold for me and happy to accumulate more on any price dips.

[Beagle]

Looks ok, especially no capital raise but I think this will continue to be an issue for the market - question of when, not if?

Downgrade has been anticipated by some in the market but probably not all.

The metrics look more than satisfactory to me. Forward PE just 10.0 as mentioned and gross yield assuming no divvy increase is 9.62% (adjusting the current price for the 3.5 cps one gets back next month). Company is growing fine and I think its a sound investment for modest growth going forward and the present yield is compelling.
I expect RBNZ to moderate their initial approach to capital adequacy after heavy criticism from virtually all industry participants so I don't see the capital raise that you and others think is coming but even if one is forthcoming on the above metrics I think it would be well supported by the market. I think what the market didn't see coming with this result is the present extremely high FX rate with Australia. I doubt it will remain up where it is for long so FX one-off's could easily reverse.

[iceman]

2.1m in one off costs relating to capital restructure, listing on the ASX and unfavourable FX rate. Strip that out and the result looks pretty good. Remember these are one off costs and non recurring.
"In the absence of an unanticipated increase in growth or an acquisition, the Group has no current need to raise equity from shareholders other than thorough the Dividend Reinvestment Plan. A combination of retained earnings reinvested through the Dividend Reinvestment Plan and other sources are sufficient for funding business as usual growth".
$74m guidance, mid point represents 13.1 cps. Normalised for removal of one-off's above that would be 13.44 cps. Normalised the company is on a forward PE of just 10.0 As cheap as it has been in many years.
No capital raise ! Happy to hold as on the current price I think the shares are very cheap.

Agree and the result looks fine by me. Still good steady and profitable growth in their areas of focus and the result reasonable despite the one off costs of the restructure, ASX listing and regulatory changes that have increase impairment provisions. Clearly they are still looking at future funding mentioning they Australian bonds and exploring longterm offshore funding. No doubt a capital raise is still in the mix and as Balance points out, we may well still see one further down the track. I'm content.

[Beagle]

Beagle ..I thought you didn’t really approve of ‘normalising’ things

What’s the next ‘non-recurring’ item going to be?

Restructuring costs are a clear one-off. I expect FX one-off's to reverse. Going forward I think one is wise to look at the underlying growth in lending. I expect sound and steady eps growth in FY19 and for the foreseeable future. Forward PE is just 10 and they are growing eps nicely. How compelling does it need to get before one adds more to their position at the current price ?

[Leftfield]

I'm with Percy and Beagle on this one. Satisfactory result. Relax, move on. (Disc - v small holding.)

[horus1]

The shares are underpriced. glad I have been buying and will continue to build up.

[Beagle]

Today is the day that yesterday we worried about,and all is well.
Steady divie,
Solid growth,
No need for extra capital.
Profit affected by "break fees" for the restructure and new IFRS9 impairments metodolgy.
Aussie REL growth 24.9%
Open for business growth 56.2%.
Good seeing large Rural and business loans being reduced.Good risk management.
Motor Vehicle lending still strong.
Very positve outlook.


Agree 100%. In case its not blindingly obviously already folks, first half is $33.1m and at the mid point of guidance this suggest second half profit of ~ $41m !
I think some people need to have a good think about what that suggests for FY20 profitability ! I know I am...could be in the region of $85m up nearly 15% on Fy19's $74m and all without the need for extra capital. Hmmmm. ~ 15 cps earnings next year should see the shares rerated to at least $1.50 in my opinion.

[winner69]

Suppose pretty solid result but not ‘stunnng‘ as Heartlands results are sometimes described as

Solid growth to continue

[couta1]

Like TRA I will need 3 and a half years of divvies to break even at current share prices.Lol

[BlackPeter]

Like TRA I will need 3 and a half years of divvies to break even at current share prices.Lol

Must be a timing problem. I bought recently and am (if I count the divi in) already in the black ;);

[winner69]

Pleasing to see that Heartland are thinking about future demographics (a bit like the retirement sector)

Will be well positioned in 2038 when 30% of the population is projected to be Maori - that’s 30% of the projected work force that Heartland will be well positioned with

Keep on supporting our rangatahi - good effort

[couta1]

Must be a timing problem. I bought recently and am (if I count the divi in) already in the black ;); HGH at $1.74 and TRA at $2.98, say no more.

[Balance]

Like TRA I will need 3 and a half years of divvies to break even at current share prices.Lol

Don't worry - share price will not stay static!

It can either go up or go down!

[ziggy415]

HGH at $1.74 and TRA at $2.98, say no more.
It's not timing...its diversification.....too many eggs in your basket....way over the top with hgh and tnr....you need to go back to old strategy and load up on one share like the couta of old

[couta1]

It's not timing...its diversification.....too many eggs in your basket....way over the top with hgh and tnr....you need to go back to old strategy and load up on one share like the couta of old You are so damn correct.

[BlackPeter]

It's not timing...its diversification.....too many eggs in your basket....way over the top with hgh and tnr....you need to go back to old strategy and load up on one share like the couta of old

Might not make it better, just riskier ...

[percy]

I missed the first 7 minutes of the webcast,however what I did hear was very positive,including some good questions that were fully answered.

[BlackPeter]

Thought I hold a bit back, but now that some nice person filled my order at 132 (and this cum 3.5 cents dividend - sweet) - I just hope that the seller is as pleased with the deal as I am.

Looking at the results: actually they align exactly with the analyst consensus (which I liked) and the NPAT forecast (10% growth) is even an upgrade to that. All parameters I monitor (like EPS, PE, leverage, ROE) are as expected and look good.

Sure - a bit boring, but in interesting times boring is good.

So - I forgave them for screwing up my research system by changing their name and ticker ... and am now full back in. Long may they keep delivering boring results :);

[winner69]

Includes what Jeff said in briefing

http://www.sharechat.co.nz/article/f16d4aac/heartland-s-1h-profit-dampened-by-restructuring-accounting-changes.html?utm_medium=email&utm_campaign=Heartlands%201H%20profit%20dampened%2 0by%20restructuring%20accounting%20changes&utm_content=Heartlands%201H%20profit%20dampened%20 by%20restructuring%20accounting%20changes+CID_a73c 67a9787b31517e7390b999346731&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlef16d4aacheartl and-s-1h-profit-dampened-by-restructuring-accounting-changeshtml

[Beagle]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12205201

[couta1]

Back to $1.31, market not impressed as some on here with the result.

[winner69]

Back to $1.31, market not impressed as some on here with the result.

Appears so eh Couts

And if use the popular ‘cum 3.5 cents dividend’ phrase it’s getting even ‘cheaper’

[kizame]

I think there is going to be an enquiery into the use of brokers in Aus,as there was a royal commission with the banks,and apparently HGH sell their reverse mortgages through brokers,this may be unsettling for them.

[iceman]

I think there is going to be an enquiery into the use of brokers in Aus,as there was a royal commission with the banks,and apparently HGH sell their reverse mortgages through brokers,this may be unsettling for them.

The Royal Commission in Australia did indeed condemn many of the incentives brokers received to the detriment of customers, not just in reverse mortgages but in banking full stop. But it also said there was a growing need for reverse mortgage type product in the market. Heartland has done most of their reverse mortgage selling in NZ directly but in Australia I think it is only 30% of the new business. Heartland is about to start a TV campaign and other direct marketing advertising. We are well positioned.

[winner69]

Jeff was on the radio this morning.

RBNZ bank capital moves could be good for Heartland if other banks tighten lending / economy pretty healthy in Nz and he sees no headwinds there / says things generally honky dory

Everything seems to be going up (lending. profits etc etc) except the dividends and share price

Heartland seems to be becoming one of those hope stocks - hope like hell the share price (and divies) go up ......sometime soon

[BlackPeter]

Jeff was on the radio this morning.

RBNZ bank capital moves could be good for Heartland if other banks tighten lending / economy pretty healthy in Nz and he sees no headwinds there / thinks generally honky dory

Everything seems to be going up (lending. profits etc etc) except the dividends and share price

Heartland seems to be becoming one of those hope stocks - hope like hell the share price (and divies) go up ......sometime soon

Remember - patience is a virtue after all :p;

[winner69]

Remember - patience is a virtue after all :p;

Patience is a form of ‘hope’ is it not

The way you put it success is sort of guaranteed — sure fire winner

[BlackPeter]

Patience is a form of ‘hope’ is it not

Clearly not:

patience: the capacity to accept or tolerate delay, problems, or suffering without becoming annoyed or anxious.



hope: a feeling of expectation and desire for a particular thing to happen.


I don't see a correlation either - Impatient people will have as much or little hope as patient ones ... they are just less frequent prepared to wait long enough :);



The way you put it success is sort of guaranteed — sure fire winner

Not my type of lyrics ... and no, success is never guaranteed unless there are no risks - and as we we all know - no risk, no gain ;);

[iceman]

I note the below sentence in the report yesterday in the discussion about O4B: “Consideration is being given to attracting external investment from specialist investors who can help Heartland to take O4B to the next stage of growth. An update will be provided to the market in due course should any transaction eventuate”

What do punters think this actually means ?

[percy]

I note the below sentence in the report yesterday in the discussion about O4B: “Consideration is being given to attracting external investment from specialist investors who can help Heartland to take O4B to the next stage of growth. An update will be provided to the market in due course should any transaction eventuate”

What do punters think this actually means ?

HGH have invested in Harmoney and Spotcap.
I take it they are looking for an investor/s to do the same with their O4B business platform.Possibly like CBA have funded their REL business in Australia.

[Beagle]

I note the below sentence in the report yesterday in the discussion about O4B: “Consideration is being given to attracting external investment from specialist investors who can help Heartland to take O4B to the next stage of growth. An update will be provided to the market in due course should any transaction eventuate”

What do punters think this actually means ?

My guess is they are looking for intermediaries but its just that, a guess.

[iceman]

Yes Percy and Beagle that’s most likely what they mean. Strange wording though.

[Onion]

Patience is a form of ‘hope’ is it not

Another word that should be added to the investor's lexicon: "pyt".


Just like ‘hygge’, ‘pyt’ does not have a direct English translation. Some interpretations include ‘never mind’, ‘don’t worry’ or ‘forget about it’ – but these expressions don’t convey the positive aspect of the word. ‘Pyt’ is used to express that you accept a situation is out of your control, and even though you might be annoyed or frustrated, you decide not to waste unnecessary energy on thinking more about it. You accept it and move on. ‘Pyt’ is also used to comfort other people and diffuse unfortunate situations.

http://www.bbc.com/travel/story/20190217-what-to-do-when-hygge-no-longer-works

[winner69]

Onion - pyt is a good word, love it

passeggiata is therapeutic way of releasing that energy that pyt brings on

[Timesurfer]

What are the chances that the 3.5cps divvy and posative growth on top of the A2 result might head me back to the green in the next week or so?
Big ask I know, but surely we can close the gap a little!

[Beagle]

What are the chances that the 3.5cps divvy and posative growth on top of the A2 result might head me back to the green in the next week or so?
Big ask I know, but surely we can close the gap a little!

I have given up on revaluing my portfolio every month, (now quarterly)... better to do your best with investment and then say pyt :)

[peat]

with so much stock underwater there's going to be a pile of resistance points if/when it does start recovering.
dont worry I,m not short and still want it to go up - just sayin what I think.

[percy]

with so much stock underwater there's going to be a pile of resistance points if/when it does start recovering.
dont worry I,m not short and still want it to go up - just sayin what I think.

Don't think anyone would disagree with you.

[minimoke]

I have given up on revaluing my portfolio every month, (now quarterly)... better to do your best with investment and then say pyt :)
I still do mine first of each month. I like to live dangerously and the ups and downs help provide the adrenaline.

[RupertBear]

I still do mine first of each month. I like to live dangerously and the ups and downs help provide the adrenaline.

Well being an attention to detail sort of Bear I do mine weekly :eek2: and I am not sure doing so will improve my lifespan :mellow:

[RupertBear]

Oh and Craigs are happy with the result, its a BUY with a TP $1.72

[moka]

Remember - patience is a virtue after all :p;


Patience is a form of ‘hope’ is it not


Patience is a skill, impatience is an emotion.

[King1212]

Oh and Craigs are happy with the result, its a BUY with a TP $1.72

Back to glory..good old heartland...

[oldtech]

Oh and Craigs are happy with the result, its a BUY with a TP $1.72

I will be happy with that, but suspect we may need to wait a year or more to see it.

[King1212]

I will be happy with that, but suspect we may need to wait a year or more to see it.

Not sure about a year...no one can predict the market but what for sure is people ar looking for top quality companies with good dividend....with term deposit remain low...HGH at current price is a good bargain ....

[Mickey]

From the Business Desk yesterday "Heartland Group rose 2.3 percent on a volume of 2.4 million shares, compared to its 343,000 three-month average". Plenty of interest.

[couta1]

In other news Kiwibank half year Net profit increases by 47.6%, looks ripe for a listing.

[percy]

I have given up on revaluing my portfolio every month, (now quarterly)... better to do your best with investment and then say pyt :)

And to think I thought you did it hourly.?.!..lol.

[winner69]

Oh and Craigs are happy with the result, its a BUY with a TP $1.72

WOW that’s good of them

Obviously they/their clients helped give the share price a boost yeasterday

Hopefully they have this as a ‘conviction’ stock and keep pumping it hard ....they doing better than us on this thread at getting the share price up

[Beagle]

And to think I thought you did it hourly.?.!..lol.

Even an old dog can learn new tricks :) More conservatively than Craigs I see it at $1.50 in 12 months and a 9+% gross dividend in the meantime, total shareholder return for the next year ~ 20%. I am content with that and have been adding in the low 130's.

[Balance]

Tracking higher - relief!

[percy]

I think the next catalyst to watch for will be how successful their REL TV advertising is in Australia, and whether it achieves the same level of success as it did NZ.
This will be HGH dealing directly with their clients,as they do in NZ, and avoiding brokers.
I think HGH are right to "go for it" now.

Dividends.Research I have seen from three brokers, has HGH increasing their dividend over the next three years,and it appears HGH not having to approach shareholders for more capital, has caught all by surprise.

[horus1]

They were a definite buy at 1.35 or so

[winner69]

They were a definite buy at 1.35 or so

Yes indeed - always good buying in the low 130s

[Beagle]

I think the next catalyst to watch for will be how successful their REL TV advertising is in Australia, and whether it achieves the same level of success as it did NZ.
This will be HGH dealing directly with their clients,as they do in NZ, and avoiding brokers.
I think HGH are right to "go for it" now.

Dividends.Research I have seen from three brokers, has HGH increasing their dividend over the next three years,and it appears HGH not having to approach shareholders for more capital, has caught all by surprise.

Thanks for posting. That was crystal clear from HGH's previous statement regarding DRP scheme to achieve 15% cap ratio and market screener, (average of broker forecasts as you know) has been showing solid increases in dividends in the years ahead for quite some time now. Not sure why this is new "news" to the market but its good to see the SP recovering somewhat.

[dabsman]

Thanks for posting. That was crystal clear from HGH's previous statement regarding DRP scheme to achieve 15% cap ratio and market screener, (average of broker forecasts as you know) has been showing solid increases in dividends in the years ahead for quite some time now. Not sure why this is new "news" to the market but its good to see the SP recovering somewhat.

I bought on the way up from $1.30 all the way to $2 and now all the way back down to $1.32 a couple of days ago. I never saw this as a dividend play really - it was a growth stock for me - the price has just grown my blood pressure. Now I own a lot and are very happy with my average price and the DRP at this price level with a discount is very nice. Will try and buy more in the 130's

[Beagle]

I bought on the way up from $1.30 all the way to $2 and now all the way back down to $1.32 a couple of days ago. I never saw this as a dividend play really - it was a growth stock for me - the price has just grown my blood pressure. Now I own a lot and are very happy with my average price and the DRP at this price level with a discount is very nice. Will try and buy more in the 130's

LOL I know the feeling. My sense is we're looking at around 10% eps growth this year and 10% eps growth next year and the stock is on a PE of about 10 and the gross dividend yield isn't far away from 10 in the low 130's. There's a lot more thinking behind this of course but it has occurred to me that four ten's is usually a winning hand in most games of chance :)

[minimoke]

I'm still well under water with this mutt. Only redeeming feature is its recent rally has just moved it away from my stop loss. Hopefully short term pain for long term gain.

[winner69]

Into the 140s

Was always good buying in the low 130s

[BlackPeter]

Absolutely - glad we agree on this one :);

[Beagle]

Got a few extra right at the $1.31 multi year bottom...I appreciate whoever made such a generous donation to my retirement fund. Should do okay from here. Expecting $1.50 later this year, possibly in the next few months.

[Joshuatree]

Good hoovering, we need bottom feeders to clean up.

[Fred_Rubble]

My only qualm is the DRIP price is going to be higher.......positive movements.

[winner69]

My only qualm is the DRIP price is going to be higher.......positive movements.

Still quite a bit lower than the last lot

Hope you have re-signed for the DRIP ...remember this is a new company, not Heartland Bank anymore

[Beagle]

https://www.nzx.com/announcements/331109

[minimoke]

https://www.nzx.com/announcements/331109Good to see someone not following the Herd.

[Beagle]

Good to see someone not following the Herd.

BBBB Beagle been busy buying for less than Jeff Greenslade paid $1.39 :) Not as many though :(

[percy]

Well done.
I note Jeff has never sold any.

[Beagle]

Well done.
I note Jeff has never sold any.

Thanks. Herdlicker and many of the AIR exec's should take notes.

[Fred_Rubble]

Strong volumes again. Someone is buying.

[SCOTTY]

Strong volumes again. Someone is buying.
And someone is selling :)

[Snoopy]

YearDividends Paid 'per share'Significant Event During Year'


FY2013 1.5cps(sp) + 2.0cps17th December 2012: Heartland becomes a bank

[/TR]

FY2014 2.5cps + 2.5cps1st April 2014: Seniors 'Reverse Mortgage' Business Acquired








FY20153.5cps + 3.0cps10th September 2014: invests in Harmony P2P startup


28th October 2014: Credit rating upgraded from BBB- to BBB (Fitch Ratings)


FY20164.5cps + 3.5cps


FY20175.0cps + 3.5cps


FY20185.5cps + 3.5cps


FY20195.5cps + 3.5cps 1st November 2018, Heartland Group Holdings restructure set up


Average FY2015 to FY2019 inclusive8.20cps




I have chosen to use the last five years of operation as indicative, as these years include the full contribution of the Reverse Mortgage Portfolio, a critical component of Heartland going forwards.

SNOOPY

[Snoopy]

Plugging in a representative yield of 7.5%, one that IMO represents an appropriate risk for the ups and downs of the banking cycle of Heartland in its current form, we can now arrive at our 'Capitalised Dividend Model' valuation

(Representative Dividend per Share) / (Acceptable Gross Yield) = Share Price (an algebraic manipulation of: Dividend per Share / Share Price = Yield )

8.333c / (0.72 x 0.075) = $1.54

A reminder here that NTA was

($664.160m - $74.401m) / 560.587m = $1.05 cps

at balance date. This means my fair valuation is at a good premium (+46%) to asset value.

This $1.54 valuation is measured at the average point in the business cycle. My rule of thumb is that over the business cycle the actual share price will fluctuate between 80% and 120% of capitalised dividend fair value. This gives a target range of $1.23 to $1.85. Given where we are in the business cycle, $1.73 looks fair value today. Given the sweet spot in the business cycle today for shares, I think $1.85 over the next twelve months is a target that Heartland could get to. I don't see compelling value at $1.73 though. But if the share does drift back towards my fair value mid point of $1.54, that might be the time to -finally- add HBL to my portfolio.


Plugging in a representative yield of 7.5%, one that IMO represents an appropriate risk for the ups and downs of the banking cycle of Heartland in its current form, we can now arrive at our 'Capitalised Dividend Model' valuation

(Representative Dividend per Share) / (Acceptable Gross Yield) = Share Price (an algebraic manipulation of: Dividend per Share / Share Price = Yield )

8.2c / (0.72 x 0.075) = $1.52

A reminder here that NTA was

($654.150m - $73.085m) / 565.430m = $1.03 cps

at the half year FY2019 balance date. This means my fair valuation is at a good premium (+48%) to asset value.

This $1.52 valuation is measured at the average point in the business cycle. My rule of thumb is that over the business cycle the actual share price will fluctuate between 80% and 120% of capitalised dividend fair value. This gives a target range of $1.22 to $1.82. $1.41, where the share is trading today, looks a little below fair value. Take off the upcoming 3.5c dividend and we get down to an equivalent $1.375. That is a 10% discount to fair value. I therefore see HGH as worth accumulating at $1.41.

SNOOPY

discl: New shareholder, in at $1.38

[Timesurfer]

Another positive ... I wanted some coin for another punt and since HGH has been boring me something chronic I took the hit and bailed today. It is bound to bounce back now given my track record - you lucky holders you.

[Beagle]

Plugging in a representative yield of 7.5%, one that IMO represents an appropriate risk for the ups and downs of the banking cycle of Heartland in its current form, we can now arrive at our 'Capitalised Dividend Model' valuation

(Representative Dividend per Share) / (Acceptable Gross Yield) = Share Price (an algebraic manipulation of: Dividend per Share / Share Price = Yield )

8.2c / (0.72 x 0.075) = $1.52

A reminder here that NTA was

($654.150m - $73.085m) / 565.430m = $1.03 cps

at the half year FY2019 balance date. This means my fair valuation is at a good premium (+48%) to asset value.

This $1.52 valuation is measured at the average point in the business cycle. My rule of thumb is that over the business cycle the actual share price will fluctuate between 80% and 120% of capitalised dividend fair value. This gives a target range of $1.22 to $1.82. $1.41, where the share is trading today, looks a little below fair value. Take off the upcoming 3.5c dividend and we get down to an equivalent $1.375. That is a 10% discount to fair value. I therefore see HGH as worth accumulating at $1.41.

SNOOPY

discl: New shareholder, in at $1.38
I also see it at around $1.50 using my peer comparison valuation methodology. 2 Beagles in agreement is not a common thing lol
With you on this one but good luck with your TRA, (you'll need it)

[Fred_Rubble]

Small but positive.

https://www.nzx.com/announcements/331285

Positive close too.

[oldtech]

Small but positive.

https://www.nzx.com/announcements/331285

Positive close too.

Yup, will be very interesting to see if that holds up today. SP has climbed fairly rapidly from 1.31 on the 15/02 to 1.44 at yesterday's close.

[winner69]

Yup, will be very interesting to see if that holds up today. SP has climbed fairly rapidly from 1.31 on the 15/02 to 1.44 at yesterday's close.


...will do ...heading into the 150s

Was always the time to buy in the low 130s

[Beagle]

Yup, will be very interesting to see if that holds up today. SP has climbed fairly rapidly from 1.31 on the 15/02 to 1.44 at yesterday's close.

I think it was heavily oversold at $1.31 mate. Those cunning enough to buy in the low 130's should be very content with their investment skills.

[oldtech]

I think it was heavily oversold at $1.31 mate. Those cunning enough to buy in the low 130's should be very content with their investment skills.

I unfortunately wasn't quite that clever, but got some in the mid 130's :D

[winner69]

Yup, will be very interesting to see if that holds up today. SP has climbed fairly rapidly from 1.31 on the 15/02 to 1.44 at yesterday's close.

Told you not to worry mate

Still climbing rapidly eh

Over 150 next week ..and remember it’s been over 2 bucks before

[winner69]

Chris Lee did a note on Heartlands result. He accidentally Jeff it up on the homepage but obviously for clients as it’s gone https://www.chrislee.co.nz/taking-stock

They love Heartland and only adverse comment was they keeping a close eye on doubtful debt as economy slows ....and like Beagle they seemed a bit concerned about the quality of lending through Harmoney

[oldtech]

Told you not to worry mate

Still climbing rapidly eh

Over 150 next week ..and remember it’s been over 2 bucks before

No worries from me winner, it's heading in the right direction.

Yup, I well remember the giddy days of $2 plus ... I'm sure Beagle will be along shortly to remind us what price he sold at. :D

[percy]

No worries from me winner, it's heading in the right direction.

Yup, I well remember the giddy days of $2 plus ... I'm sure Beagle will be along shortly to remind us what price he sold at. :D

Nothing on this page.............so far...!..............lol.

[Baa_Baa]

No worries from me winner, it's heading in the right direction.

Yup, I well remember the giddy days of $2 plus ... I'm sure Beagle will be along shortly to remind us what price he sold at. :D

And what he bought back in at .. lol. Mark the post# so he only has to reply with #0000 and we'll all know what he means and have a laugh, like the one about the old boys whose jokes they all knew so well they numbered them, one would say #6 and they'd all laugh, another would say #52 and they would all laugh, and so on and so forth.

$2.14 high and $1.31 ... for the record. Quite an achievement.

[oldtech]

And what he bought back in at .. lol. Mark the post# so he only has to reply with #0000 and we'll all know what he means and have a laugh, like the one about the old boys whose jokes they all knew so well they numbered them, one would say #6 and they'd all laugh, another would say #52 and they would all laugh, and so on and so forth.

$2.14 high and $1.31 ... for the record. Quite an achievement.

I hasten to add, my comments were made in all respect for Beagle's uncanny ability to pick (should that be "sniff out"?) the SP highs and lows so brilliantly. Love your work Beagle!

[Joshuatree]

For gods sake dont stroke the animal or its ego its oversize and overweight( no meaty treats)already. And remember traders depend on naive investors for liquidity.;)

[RTM]

For gods sake dont stroke the animal or its ego its oversize and overweight( no meaty treats)already. And remember traders depend on naive investors for liquidity.;)

No.....punters should also check post 3140 on the THL thread and 7112 on the Summerset thread. But yes...outstanding on HGH for sure.

[iceman]

Markets closed for the week, beer o'clock so lets all beat up on the Beagle for openly sharing his thoughts with us. On 2nd thought, I prefer just to wish him and all the other punters a good weekend, free of personal attacks on this or any other forum !

[Balance]

Congrats to everyone who topped up in recent times around the $1.30s!

Well done!

[winner69]

Markets closed for the week, beer o'clock so lets all beat up on the Beagle for openly sharing his thoughts with us. On 2nd thought, I prefer just to wish him and all the other punters a good weekend, free of personal attacks on this or any other forum !

Iceman, you have a good weekend too

Just human nature to tell good stories. Most on here do it even it’s only saying ‘holding since 25 cents’ when the share price hits 50 cents sort of stuff. Disclosure: holding Turners since the high 250’s

[Balance]

Iceman, you have a good weekend too

Just human nature to tell good stories. Most on here do it even it’s only saying ‘holding since 25 cents’ when the share price hits 50 cents sort of stuff. Disclosure: holding Turners since the high 250’s

Tis' true, W69.

I have enough HGH so was not tempted to invest more in the low $1.30s but certainly relieved that they did not unleash a capital raising on us, and the sp has somewhat recovered!

[BlackPeter]

Nice uptrend (higher highs and all these things) and starting to approach the MA100 at 1.47 (but still below). Might be time for wee breather early next week ... but time will tell.

10361

[Beagle]

https://www.harbourasset.co.nz/research-and-commentary/australian-banks-increased-capital-requirements-to-change-the-landscape/

Certainly has been nice to see a quick-ish partial recovery in HGH's SP but it may not be done yet.
Deputy governor of the RBNZ doubled down this week on their belief regarding bank capital requirements and this has serious implications for the Australian owned banks and appears to perhaps confer competitive advantages for HGH ? who are already well capitalised and can get to the new capital required threshold simply through their dividend reinvestment plan.
Plain sailing for HGH as per the image in the above link but stormy seas for the Aussie banks ? HGH's future dividends look safe.

[winner69]

Tis' true, W69.

I have enough HGH so was not tempted to invest more in the low $1.30s but certainly relieved that they did not unleash a capital raising on us, and the sp has somewhat recovered!

Yes balance ....but was good buying in the low 130s

[oldtech]

Very very close to $1.50 now ...

[winner69]

Very very close to $1.50 now ...

Well over by end of week ..

......possibly $1.60 next week

[trader_jackson]

$1.50 now actually...
FXL v HGH?

[couta1]

Well over by end of week ..

......possibly $1.60 next week Haha nice ramping winner, $1.60 after having run hard and shedding a 3.5c divvy, yeah right.

[winner69]

Haha nice ramping winner, $1.60 after having run hard and shedding a 3.5c divvy, yeah right.

The worlds a happy place at the moment and banks in favour so no worries about the $1.60





jeez if FXL can go up 50% in a hurry Heartland can do 20%

[TideMan]

I bought my shares years ago, but Direct Broking only records the data since HGH changed its name.
How does one get at the data before that?

[iceman]

I bought my shares years ago, but Direct Broking only records the data since HGH changed its name.
How does one get at the data before that?

I don't think you can on the Direct Broking website

[johndes]

All the earlier data is available on the NZX website under HBL

[oldtech]

http://bigcharts.marketwatch.com/ also has the historical data under HGH

[RTM]

I bought my shares years ago, but Direct Broking only records the data since HGH changed its name.
How does one get at the data before that?

Yeah, it’s a pain. I bought mine in multiple buys, DRP ‘s, maybe a few sells ? Can’t recall and info now not easily accessible.

[oldtech]

Yeah, it’s a pain. I bought mine in multiple buys, DRP ‘s, maybe a few sells ? Can’t recall and info now not easily accessible.

I started using Sharesight a couple of years ago and love some of it's features, but old habits die hard ... I still have every transaction recorded in a spreadsheet. I can tell you exactly what I paid for every share. how much brokerage, when I took up the DRP, etc.

[Benny1]

I started using Sharesight a couple of years ago and love some of it's features, but old habits die hard ... I still have every transaction recorded in a spreadsheet. I can tell you exactly what I paid for every share. how much brokerage, when I took up the DRP, etc.

Yeah me too... Have used Sharesight for a while now which I like but also keep everything on my own spreadsheet.. Started doing that to learn more about Excel than anything but find it a very handy source of information on my own dealings.

[100101]

I've used MYOB for many many years. Using share ticker as inventory number and "buying" brokerage for each transaction.
Love the way that it provides a full suite of accounting routines and no annual fees.

[mondograss]

If it's records of your own transactions you're after, you might find that you can get what you want from the Link registry website.

[BlackPeter]

Just for the record: HGH did break throught the EMA100 (at $1.47), but is still below the EMA200 (at $1.57); From a TA perspective - not everybody likes to buy below the MA200 (and thre are as well good reasons) - but obviously, higher risk, higher potential gain.

I bought yesterday another parcel in the high 1.40'ies after chasing the SP already for some days (hoping in vain for a dip ;));

[winner69]

Global dairy prices up strongly overnight

Heartland share price following the recent uptrend (bit of a lag) so looking good for for the next month or two

Share price now 150 ....be 160 sooner than later ....and about 180 before next profit announcement

[Beagle]

Global dairy prices up strongly overnight

Heartland share price following the recent uptrend (bit of a lag) so looking good for for the next month or two

Share price now 150 ....be 160 sooner than later ....and about 180 before next profit announcement

Might take a bit longer to get to the $2.50 you and Percy think its worth, sorry mate couldn't resist :p

[winner69]

Might take a bit longer to get to the $2.50 you and Percy think its worth, sorry mate couldn't resist :p

That was for a solid Heartland Bank ...this restructure into Heartland Group has made the new group more ’risky’ so I’ve had to discount the $2.50 and lowered expectations

[Beagle]

That was for a solid Heartland Bank ...this restructure into Heartland Group has made the new group more ’risky’ so I’ve had to discount the $2.50 and lowered expectations

Just winding you up mate :D

[iceman]

Might need a capital raise soon if this is the future in Aussie.

https://www.canberratimes.com.au/politics/federal/retirees-marooned-as-banks-retreat-on-reverse-mortgages-20190305-p511uh.html

I was expecting them to announce it in the interim report just released but to the contrary, they firmly indicated they have alternative offshore funding available to fund the massive REL growth

[Beagle]

Might need a capital raise soon if this is the future in Aussie.

https://www.canberratimes.com.au/politics/federal/retirees-marooned-as-banks-retreat-on-reverse-mortgages-20190305-p511uh.html

Contains some very interesting data on the amount of capital ones needs at retirement and dispels some myths perpetrated by self interested companies peddling retirement investment schemes. Yes I think this is a tremendous modest risk growth area for HGH.

[Bobdn]

I hope the Minister of Finance and the Treasury are keeping a close eye on this. I own a little bit of Heartland, ANZ and WBC. Some may do worse out of this than others but all NZers will suffer unnecessarily. Why do we make it so hard on ourselves in this country?

"The Reserve Bank's proposals to double minimum bank equity levels will cost New Zealand's economy $1.5-to-$2 billion a year without making banks much safer, according to former long-serving central bank official Ian Harrison."

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12209846

[winner69]

I hope the Minister of Finance and the Treasury are keeping a close eye on this. I own a little bit of Heartland, ANZ and WBC. Some may do worse out of this than others but all NZers will suffer unnecessarily. Why do we make it so hard on ourselves in this country?

"The Reserve Bank's proposals to double minimum bank equity levels will cost New Zealand's economy $1.5-to-$2 billion a year without making banks much safer, according to former long-serving central bank official Ian Harrison."

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12209846




The full story bob ....a good read if hterested in such things

http://www.tailrisk.co.nz/documents/HowMuchCapitalIsEnough.pdf

[horus1]

The Reserve bank proposals are correct. This report in the Herald is just another attack from the banks. The sooner the changes are made the better. HGH were a huge buy at 1.30 to 1.40. Picked up as many as I could and I have alot .

[Bobdn]

Thanks for the link Winner, appreciate it.

[kiwico]

According to the Canberra Times (https://www.canberratimes.com.au/politics/federal/retirees-marooned-as-banks-retreat-on-reverse-mortgages-20190305-p511uh.html) retirees are being blocked from accessing the money trapped in their property as banks pull out of the reverse mortgage market, fuelling a growing income inequality among older Australians. As discussed before this potentially further opens up opportunities for Heartland.

[winner69]

Wow - down a cent (but don't look at the volume ...). Jeff might be tempted to buy another lot. ;)

[winner69]

Suppose good news forvHeartland ....growth and more growth

https://www.interest.co.nz/banking/98491/harmoney-looking-raise-25-million-new-equity-year-founder-neil-roberts-says-peer-peer

And this comment from ocelot is worth considering (good and bad) ....Harmoney no P2P lender just a shopfront for a few financial companies

I know where they could get a loan.

Seriously, if they were actually keen on their business model, they'd use it to generate the capital that they need. I haven't see a loan worth investing in on their site in about 3 months. I think they're not actually operating as a p2p lender. They're giving the "institutional investors" (banks) the first bite. This is scummy because their marketing is all about it being p2p, but the reality is that it's just a way for the banks to be even less responsible with their lending practices than they appear to be.

[Beagle]

https://www.nzx.com/announcements/331831
Nice timing. Adding another 1,000,000 shares to ones holding at an opportune time
Plenty of skin in the game that's for sure !

[Baa_Baa]

https://www.nzx.com/announcements/331831
Nice timing. Adding another 1,000,000 shares to ones holding at an opportune time
Plenty of skin in the game that's for sure !

Very nice, especially having bought the opportunity before the big money insiders. He sure does have a swag of shares 😳🤑

[percy]

Very nice, especially having bought the opportunity before the big money insiders. He sure does have a swag of shares ����

Also a director and large shareholder in OCA.

[Baa_Baa]

Also a director and large shareholder in OCA.

Double happy then, still plenty of time to load up on OCA, it’s not that often a sleeper comes along that us minnows can accumulate for future prosperity and enjoy good returns along the way. Better talk about that on the OCA thread.

[percy]

Double happy then, still plenty of time to load up on OCA, it’s not that often a sleeper comes along that us minnows can accumulate for future prosperity and enjoy good returns along the way. Better talk about that on the OCA thread.

Yeah Right.!...lol.

[Baa_Baa]

Yeah Right.!...lol.

What part is yeah right? Just asking. Do you mean ‘yes that is right’ or ‘yeah that is not right’. Such is kiwi colloquial sayings.

[percy]

What part is yeah right? Just asking. Do you mean ‘yes that is right’ or ‘yeah that is not right’. Such is kiwi colloquial sayings.

Please your self.What ever you are happy with.

[Fred_Rubble]

And someone is selling :)

Now we know who was buying! :t_up:

No small purchase. Great sign of things to come I would suggest.

[Beagle]

BBB+ Beagle been busy buying more too :) Not 1,000,000 but HGH is now one of my biggest holdings.

[Leftfield]

BBB+ Beagle been busy buying more too :) Not 1,000,000 but HGH is now one of my biggest holdings.

Pleased to say I'm with you on this one! :t_up:

(Only 2% of my portfolio and looking to add more on any dips)

[Ggcc]

[QUOTE=Left field;751168]Pleased to say I'm with you on this one! :t_up:

(Only 2% of my portfolio and looking to add more on any dips)[/QUOTE

Roughly 15% of my portfolio and growing hehe

[oldtech]

Pleased to say I'm with you on this one! :t_up:

(Only 2% of my portfolio and looking to add more on any dips)

I bought in the high 130's/low 140's, would happily add more in a dip but sad to say I'm not anticipating any in the near future ...

[oldtech]

NZX chart appears to be badly wrong for some bizarre reason ... 30 day SP shown as moving between 2.312 and 2.718!

Not too sure quite what they're smoking ...

[blockhead]

Blocky has just ticked the box for DRP, even after the spanking I took last year when I seem to remember the price was a little north of $2. Surely come out on the winning horse this time ??

[oldtech]

So have I blockhead, very confident in Heartland's performance at this point.

[janner]

Blocky has just ticked the box for DRP, even after the spanking I took last year when I seem to remember the price was a little north of $2. Surely come out on the winning horse this time ??

Did not take them up on their first DRP. Have done so on all subsequent dividends.

" As Albert Einstein once said, “the most powerful force in the universe is compound interest.” The power of compounding is amplified, not reduced, by rising rates."

I think he was right :-)))

[Snoopy]

Plugging in a representative yield of 7.5%, one that IMO represents an appropriate risk for the ups and downs of the banking cycle of Heartland in its current form, we can now arrive at our 'Capitalised Dividend Model' valuation

(Representative Dividend per Share) / (Acceptable Gross Yield) = Share Price (an algebraic manipulation of: Dividend per Share / Share Price = Yield )

8.2c / (0.72 x 0.075) = $1.52

A reminder here that NTA was

($654.150m - $73.085m) / 565.430m = $1.03 cps

at the half year FY2019 balance date. This means my fair valuation is at a good premium (+48%) to asset value.

This $1.52 valuation is measured at the average point in the business cycle. My rule of thumb is that over the business cycle the actual share price will fluctuate between 80% and 120% of capitalised dividend fair value. This gives a target range of $1.22 to $1.82.



Blocky has just ticked the box for DRP, even after the spanking I took last year when I seem to remember the price was a little north of $2. Surely come out on the winning horse this time ??


I am with you Blocky, and with a few others by the sound of things. My reasoning is a little different though. I want to accumulate more Heartland shares. But I don't want to pay too much for them. If I can pick up some more shares in the DRP for around $1.52 or less - and save some brokerage - I will do so. However, if the likely DRP share price rises above that figure I will cancel my participation in the plan. I don't care what the trend is doing. I am after value, pure and simple.

I reckon hoping for a share price a little north of $2 (almost twice asset backing) is backing an outsider.

SNOOPY

[ziggy415]

Happy lying in my hotel here in hong kong knowing my divy is paying for my holiday.....should be in china but they classed me as an undesirable alien and wouldnt let me stay even tho honk kong is governed by china...go figure

[oldtech]

NZX chart appears to be badly wrong for some bizarre reason ... 30 day SP shown as moving between 2.312 and 2.718!

Not too sure quite what they're smoking ...

Glad to see I'm not imagining things ...

https://www.nzx.com/announcements/331945

[SCOTTY]

Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6% (8.333 gross) :)

[oldtech]

Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6% :)

Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.

[waikare]

Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.

I also don't recall it being that high either, if it was trading at $2.71, it must have been some time back, as I first brought in at $1.75 May 2018.

[Beagle]

Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6% (8.333 gross) :)

8.33% Gross is an awesome yield and there's a perfectly reasonable expectation dividends will grow over the years ahead.


Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.
The highest HBL ever traded at was $2.14.

[percy]

AU $ 50mil medium term note issue should help fund a good few more Aussie RELs.

[King1212]

AU $ 50mil medium term note issue should help fund a good few more Aussie RELs.


Keep safe down there Percy.....pray for Christchurch

[percy]

Keep safe down there Percy.....pray for Christchurch

My daughter and granddaughter are leaving just now to see whether they can get home.
Their street and the motorway are closed off while the army work on the bomb.
I think we all feel very distressed,and upset for all the families who have lost loved ones.
Words seem to fail me,what ever you write,is just so inadequate.


ps.Daughter has just rung,they are allowed in,but not allowed to go out.

[BlackPeter]

Yes, the Christchurch event has been terrible - and there is now a special thread for it: https://www.sharetrader.co.nz/showthread.php?11484-The-Christchurch-Terrorist-Shootings-(15-March-2019)&p=751541#post751541

Happier days at HGH - from a TA perspective the SP passed on the 4th of March over the MA100 - and so far stayed above it (MA100 currently at $1.48). All upwards from here.

If you want to share some of your joy with those in need ... maybe consider to give a small (or large) portion of your HGH dividends to the victims families ... you can't bring back the family they lost due to the actions of a sick madman (or two or three), but the last thing they now need is financial hardship due to this terrorist attack.

https://thespinoff.co.nz/news/16-03-...m-communities/

[kiwico]

According to InvestSmart (http://investsmart.com.au)reverse mortgage lenders in Oz are now only IMB, Heartland Seniors’ Finance, and P&N Bank.

A key "competitor" is the Pension Loans Scheme (PLS) run through the Department of Human Services but this is currently only available to age pension recipients. This changes from 1 July 2019 when the PLS becomes open to all retirees including self-funded retirees, with the maximum payment worth 150% of the full age pension.

Hopefully not too much to the detriment of HGH.

[percy]

PLS only offer pension top ups,not lump sums,so not competition.

[Snoopy]

AU $ 50mil medium term note issue should help fund a good few more Aussie RELs.


Yes, except this bond is ostensibly to replace the $100m Heartland Bank Bond for the same purpose that was paid back. So what does this mean?

Either:

1/ Growth in the Australian REM business is only half what was expected a year ago when the Heartland bank Bond was issued? OR
2/ A $50m bond was all they could get away. So half of the future growth in Australia will have to be funded by HGH shareholders in New Zealand instead?

SNOOPY

[percy]

No I think it is only part [or a start] of their Australian funding program.
Borrowing in Australia for Australian lending.
The $50mil replaces the $20mil HGH repaid when they restructured.

[Snoopy]

No I think it is only part [or a start] of their Australian funding program.
Borrowing in Australia for Australian lending.
The $50mil replaces the $20mil HGH repaid when they restructured.


Quite right percy. I don't know why I had $100m stuck in my head. The repaid bond was indeed $A20m. So if they are raising $A50m, growth in Australian REMs must be ahead of previous plans. Team Geoff and Jeff have come through again!

Of course there have been sacrifices along the way. Jeff started with a full head of hair at Heartland. And now he can't go near a billiard saloon for fear of being struck by an errant cue. I guess that makes him harder to distinguish from some of those other more senior directors too. Never been to a Heartland AGM, but I guess Jeff is easy to spot. The director wearing the superman cape?

SNOOPY

[percy]

Jeff Greenslade used to be a "nervous" presenter.Nowdays he is relaxed,and open. AGMs he does not give much away,however try, if you can, to get to a HGH presentation.
He and Chris Flood "open up" and I always come away having learnt a good deal.
Perhaps you could email either Greenslade or Flood ,and ask to be put on a mailing list for their next ChCh presentation.
Chris Flood's email is chris.flood@heartland.co.nz

[percy]

Quite right percy. I don't know why I had $100m stuck in my head. The repaid bond was indeed $A20m. So if they are raising $A50m, growth in Australian REMs must be ahead of previous plans. Team Geoff and Jeff have come through again!

Of course there have been sacrifices along the way. Jeff started with a full head of hair at Heartland. And now he can't go near a billiard saloon for fear of being struck by an errant cue. I guess that makes him harder to distinguish from some of those other more senior directors too. Never been to a Heartland AGM, but I guess Jeff is easy to spot. The director wearing the superman cape?

SNOOPY

I wonder whether you will get a $100mil bond issue this time.?

[Beagle]

Hope so...we need something to "supercharge" the growth. I think this is a smart way to do just that and not be eps dilutive.

[Snoopy]

I wonder whether you will get a $100mil bond issue this time.?


I read the announcement regarding Heartland 'considering' a new un-subordinated note for NZ wholesale and retail investors Percy. A 'sister issue' to the Heartland HBL010 4.5% note issued on 21-09-2017. Since they are only 'considering' making such an issue, I thought that Jeff was very organized having all the lead managers of the issue named and appointed. Am I correct in saying that the old HBL010 issue was for a total of $151.853m? Looks like Jeff may be fishing for participants, and if there are more that take the hook than he wants, then the interest rate offered will be less than 'they' want. All good for shareholders though!

In some ways I hope this new bond issue fails to get off the ground. This would then 'prove' the need for the company to have restructured into Heartland Group Holdings, because of the lack of appetite of NZ investors to fund Heartland's expansion. However, I can't personally complain about the creation of HGH, because the subsequent share price plunge is what gave me my competitive entry price into the Heartland shareholder family.

Depending on how things pan out, I may just be 'considering' increasing my Heartland share holding ;-P

SNOOPY

[percy]

HBL010s mature 21/9/2022.issue was 150 mil.,
Most probably "fishing" is the right way to go about it.
That way they "meet the market" both in size and rate.
I too may "consider" increasing our HGH holdings...lol..

[Beagle]

We are well overdue for a strong run. Was flicking through some old financials of mine the other day and noted my holding in HBL as at March 2015 had a market value of $1.31. 4 years and its only put on ~ 20 cps. Hardly a stellar run by any stretch of the imagination although at one point it did hit...oh I'd better not go there again lol
Maybe in another 4 years it will have a 2 as the first number of the share price again...we live in hope:)

[percy]

Like a broken record we expect you to keep on going there,going there,going there,going there....going there.its what you do best..going there....

You do not hear those of us who brought at between 60 cents and a $1, going there,going there,going there... lol.

[Snoopy]

HBL010s mature 21/9/2022.issue was 150 mil.,


Under note 13 in AR2019, 'unsubordinated note borrowings' are up to $151.853m at balance date, up from zero the previous year. Do you know what makes up the $1.853m difference? Oversubscriptions?

SNOOPY

[winner69]

Under note 13 in AR2019, 'unsubordinated note borrowings' are up to $151.853m at balance date, up from zero the previous year. Do you know what makes up the $1.853m difference? Oversubscriptions?

SNOOPY

A few extra they handed out to loyal shareolders who heavily promote and defend the company? ....sort of a reward for services rendered?

[Beagle]

Like a broken record we expect you to keep on going there,going there,going there,going there....going there.its what you do best..going there....

You do not hear those of us who brought at between 60 cents and a $1, going there,going there,going there... lol.

But I didn't go there, sorry to disappoint you lol
The point is $1.50 is not special for a company that was $1.31 4 whole years ago. I am sure we can find common ground that its due for a decent run.

[percy]

Agreed.
I think "the market" is finally realising HGH's potential,and the fact it is not tarred with the same brush as the Australian Banks.
Why it got ahead of itself and went over $2.00 is hard to figure.I think a lot of us thought "UDC" was a done deal,when it was not.

[Beagle]

Yes perhaps it was that but the multiple simply got too far ahead of itself in my opinion, just like it went stupidly low at $1.31 on the back of the tarring you mentioned.
I think they have excellent prospects for growth in EPS for the foreseeable future and the present forward multiple is well and truly toward the bottom end of its long term range therefore there's plenty of prospect for share price gains from both eps growth and multiple expansion. Maybe we see $2 again in 2021 ?
$1.72 by Craigs probably about right as a price target for early 2020 though in my opinion and in the meantime there's the very attractive yield to enjoy :)
Even this old hound that gets bored easily can afford to be patient when enjoying an 8.8% gross yield ! (Based on assuming 9.5 cps fully imputed dividends for FY20 9.5 / 0.72 / 150 = 8.8%).

[horus1]

This is a good buy at 1.50 as you say Beagle. I think a lot expect an issue and have held back

[Snoopy]

Strike price for the shares in lieu of dividend has been announced and for those canny investors participating they enjoy a 2.5% discount to the VWAP ex divvy trading price over recent days ($1.625). Participation is actually a good way to boost one's effective yield. For example I am forecasting 7.95% gross yield as recently posted in the year ahead but for those taking the shares in lieu their gross yield becomes 7.95 / 0.975 = 8.154%.

Just on 5.3m shares are being issued for this dividend and I am modelling 10.6m shares issued for the year or 1.9% increase in the number on issue. Provided they don't do a capital raise the vast majority of this year's profit growth should translate to EPS growth but I agree with Percy that asking whether this years forecast profit growth will be reflected in an ostensibly similar EPS growth is an excellent question for the annual meeting. After only 2% EPS growth last year I will be seeking some comfort the company hasn't lost focus on the importance of EPS growth.


Strike price for the Dividend Reinvestment Plan (DRP) in lieu of the cash dividend payable on 29 March 2019 is announced today as $1.4709 per share. I am happy with that. Likewise we get the compounding effect of more shares to take part in the next dividend, similar to the effect of the September 2018 dividend as reported on by Beagle,

I wonder how 'canny' those investors who received shares at $1.625 in the September dividend payment are feeling now though?

"Och Jock, I canny understand where all the promise of last years earnings went, that saw me accept shares at $1.625!"

I notice the HGH share price retreated to the HGH DRP price today. Not much arbitrage their for those who tried to exploit it.

SNOOPY

[Beagle]

"Och Jock, I canny understand where all the promise of last years earnings went, that saw me accept shares at $1.625!" LOL too funny mate. Swings and roundabouts with these DRP's but I think you know that already :)

[Snow Leopard]

I generally go for the DRiP unless I think the SP is seriously overvalued and then never bother to regret it.

[Turtle2]

Under note 13 in AR2019, 'unsubordinated note borrowings' are up to $151.853m at balance date, up from zero the previous year. Do you know what makes up the $1.853m difference? Oversubscriptions?

SNOOPY

Accrued interest would work out at that

[minimoke]

I am always left wondering when a person leaves with effect immediately. I see a director (Graham Kennedy) is off today

[BlackPeter]

Hmm - Kate Morrison (ex Deutsche Bank) joining the Heartland Board.

https://www.nzx.com/announcements/332666

Well, I don't know Kate, but somehow this sounds like somebody from Fonterror running Synlait? Oh - oops, just happened, didn't it?

Let's hope the success of her previous employer isn't following her ... I hear Deutsche Bank is great in making shoddy deals with lying Don as well as paying bonus payments to their staff at the same time they are losing money for their shareholders.

But than she claims to be experienced in "succession planning, strategy and governance". Maybe it was not her fault.

All good than.

[percy]

I am always left wondering when a person leaves with effect immediately. I see a director (Graham Kennedy) is off today

Often health reasons.

[winner69]

Hmm - Kate Morrison (ex Deutsche Bank) joining the Heartland Board.

https://www.nzx.com/announcements/332666

Well, I don't know Kate, but somehow this sounds like somebody from Fonterror running Synlait? Oh - oops, just happened, didn't it?

Let's hope the success of her previous employer isn't following her ... I hear Deutsche Bank is great in making shoddy deals with lying Don as well as paying bonus payments to their staff at the same time they are losing money for their shareholders.

But than she claims to be experienced in "succession planning, strategy and governance". Maybe it was not her fault.

All good than.

It’s only for Heartland Bank

Evens the gender balance up a bit ..that should be good for Heartland

[artemis]

When I saw new director, sadly disappointed when it was not Percy.

[percy]

When I saw new director, sadly disappointed when it was not Percy.
They do have some brains....lol.

[minimoke]

When I saw new director, sadly disappointed when it was not Percy.Despite being very well qualified Percy is as far removed from the ideal Diversity criteria as you can get

[ziggy415]

Plenty of gender diversity here in Thailand....cant tell if there child bearing or ball bearing tho

[dabsman]

Plenty of gender diversity here in Thailand....cant tell if there child bearing or ball bearing tho

LMFAO that comment made my day

[percy]

LMFAO that comment made my day

Mine too.!!

[winner69]

Despite being very well qualified Percy is as far removed from the ideal Diversity criteria as you can get

Looking at the photo of the guy whose leftand thinking about the other pre-requisites percy is very well qualified to be a Heartland Director -


White European
Over 65
Knows about things like NIM
Appreciates the importance of a digital age - even though technically challenged but board members think and don’t do eh.
Has an empathy with the Elderly being the target customer for HERs
Is in love with the company
Thinks the world of his fellow directors (no disruption on this board)
Lots of skin the game
Etc
Etc



Only issue being as the company spokesman they might find it hard to class him as a truly independent director

[Beagle]

^^^ :lol: :lol:

[winner69]

Reserve Bank’s Orr keeps on about his tree god nonsense, urging us to think of the Bank as akin to Tane Mahuta, the mythological forest god. He even is getting the Bank to do a special study on the Maori economy and even going to appoint a Cultural Capability Advisor Maori.

Greenslade talks a lot about the importance of Maori and the portions in the Annual and Interim Reports in Maori are always a good read

Are Adrian and our Jeff in cohoots hatching a grand plan.

[Beagle]

I hope in the annual report in due course they also present the Chairman's and CEO's report in Arabic to make our Muslim friends feel included. That would be a nice touch.
Nice capital raise with the DRIP just on $5.7m. Those canny investor partaking must be thinking (assuming 9.5 cps in annual divvies next year) I canny imagine how else I am going to get a 9% gross dividend from a bank and very pleased I'm investing on the right side of the investment ledger.

In the rush to get safe yield I think this is one puppy that's been overlooked.

[pierre]

I hope in the annual report in due course they also present the Chairman's and CEO's report in Arabic to make our Muslim friends feel included. That would be a nice touch.
Nice capital raise with the DRIP just on $5.7m. Those canny investor partaking must be thinking (assuming 9.5 cps in annual divvies next year) I canny imagine how else I am going to get a 9% gross dividend from a bank and very pleased I'm investing on the right side of the investment ledger.

In the rush to get safe yield I think this is one puppy that's been overlooked.

The $75m note offer just announced will pay not less than 3.5% interest. Just proves it's better to own the bank than to lend it money.

[minimoke]

I hope in the annual report in due course they also present the Chairman's and CEO's report in Arabic to make our Muslim friends feel included. That would be a nice touch.
Nice capital raise with the DRIP just on $5.7m. Those canny investor partaking must be thinking (assuming 9.5 cps in annual divvies next year) I canny imagine how else I am going to get a 9% gross dividend from a bank and very pleased I'm investing on the right side of the investment ledger.

In the rush to get safe yield I think this is one puppy that's been overlooked.Got my DRP letter in the weekend which was a nice reminder I had picked up a pile of shares at $1.47. I'm looking forward to an SP higher than that and so far it looks good.

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/332768/297717.pdf

Ability to accept oversubscriptions at HGH's discretion, apparently without limit ?
Borrowing long term at ~3.5% is great for shareholders and should do wonders for their net interest margin.
Who knew the existing bonds were trading in the secondary market at just 3.04% ! People must think HGH is safe as houses. 9% gross yield on the shares + growth is the share price and growth in future dividends is a real free lunch...better keep this quiet and BUY some more :)

[RTM]

Already slightly more than 10% of my portfolio, the biggest %, so I am being stoic in not buying more. Sometimes it’s hard, especially when I have cash burning a hole in my investment pocket. Should transfer it back to Heartland I guess.

[BlackPeter]

Already slightly more than 10% of my portfolio, the biggest %, so I am being stoic in not buying more. Sometimes it’s hard, especially when I have cash burning a hole in my investment pocket. Should transfer it back to Heartland I guess.

you can always buy SUM-thing else ;)

[pierre]

Already slightly more than 10% of my portfolio, the biggest %, so I am being stoic in not buying more. Sometimes it’s hard, especially when I have cash burning a hole in my investment pocket. Should transfer it back to Heartland I guess.

Understand mate. HGH has risen to 17.5% of my portfolio and I have a large lump of cash sitting in a Heartland Call account at 2.5%. I'm not happy with that rate but I am just being a bit cautious about investing too much more anywhere at this time with the overall market being a bit "toppy".

My large BLT holding has risen 33% this morning - that helped reduce my HGH portfolio percentage - though I suspect BLT will slip back a bit by the end of the day.

[Fred_Rubble]

I would surmise the continued upward movement of the HGH share price through the recent ex divy and divy payment stages is a sign of good things to come. It hardly blinked.

Continued closes at higher highs and recent large investment by Director all pointing in the right direction.

Also the banking royal commission continues to drift into the rear view mirror.

Please correct me if I am wrong, but I believe we continue to be well positioned.

[Baa_Baa]

I would surmise the continued upward movement of the HGH share price through the recent ex divy and divy payment stages is a sign of good things to come. It hardly blinked.

Continued closes at higher highs and recent large investment by Director all pointing in the right direction.

Also the banking royal commission continues to drift into the rear view mirror.

Please correct me if I am wrong, but I believe we continue to be well positioned.

Technically, i.e. chartwise, HGH broke up out of a recent resistance today, it's looking good, still well beneath the standard SP topping indicators. Plenty of people here are 'well positioned', maybe not quite as nimble who knows, but it's all relative if you look at % instead of $. Happy to have a nice divi in my bank account just a day or so ago and see the SP brush it off and move upwards.

I'll be the amongst the first out when the sh1t hits the fan but there's no sign of that anytime soon. Patience, observance, perseverance, and action when it's needed. Equally happy if that doesn't happen and this continues up to previous highs. Works for me.

[minimoke]

Please correct me if I am wrong, but I believe we continue to be well positioned.Some of us still carrying quite large paper losses so still some way to go to break even and start to get excited again.

[King1212]

Some of us still carrying quite large paper losses so still some way to go to break even and start to get excited again.

well not me...I am in black...anyone here are in paper loss? I thought most of them had sold out prior the result......cut loss!

[winner69]

well not me...I am in black...anyone here are in paper loss? I thought most of them had sold out prior the result......cut loss!

Seems there are some/several/many still in the red

Not surprising see shareprice is still 25% off it’s highs and 10% lower than a year ago

Not everybody is as lucky (sorry smart) as you (and me)

Minimoke a good guy and will will be OK eventually

[King1212]

Seems there are some/several/many still in the red

Not surprising see shareprice is still 25% off it’s highs and 10% lower than a year ago

Not everybody is as lucky (sorry smart) as you (and me)

Minimoke a good guy and will will be OK eventually

come winner..u r smarter than me:D I m just a little fish that in love, trust the company so much as Percy does:t_up:

I bought more when everyone shouted capital raise...which was a great call.....

[minimoke]

well not me...I am in black...anyone here are in paper loss? I thought most of them had sold out prior the result......cut loss!I had bought /sold to cut loss. Then things looked rosier so bought again. And true to trend SP went down. Oh well, such is life. Didnt hit my stop loss this time around so looking froward to recouping losses. With the DRP not a lot further to go.

[winner69]

Global dairy prices up again overnight ...ninth auction in a row with positive results

Good signs for Heartland share price

[blockhead]

Another 30c and Blocky will be in the green again

[BlackPeter]

Technically, i.e. chartwise, HGH broke up out of a recent resistance today, it's looking good, still well beneath the standard SP topping indicators. Plenty of people here are 'well positioned', maybe not quite as nimble who knows, but it's all relative if you look at % instead of $. Happy to have a nice divi in my bank account just a day or so ago and see the SP brush it off and move upwards.

I'll be the amongst the first out when the sh1t hits the fan but there's no sign of that anytime soon. Patience, observance, perseverance, and action when it's needed. Equally happy if that doesn't happen and this continues up to previous highs. Works for me.

Just to add to this observation - SP just touched the MA200 (at 155.something) and is now already for a month or so (i.e. confirmed) above the MA100. Thanks to yesterdays little rally we do have now as well higher highs. Not sure what else one would want to see as confirmation for a trend change.

On the other hand - if we all agree, this might be a reason to worry?

Discl: hold (XL);

[percy]

Another 30c and Blocky will be in the green again

What a great disappointment you turn out to be.!
I thought you were an early believer,buying under 75 cents.
You must have taken notice of Snoopy's posts,before he saw the light.....lol.

[Timesurfer]

well not me...I am in black...anyone here are in paper loss? I thought most of them had sold out prior the result......cut loss!

Yup - cut and run here.
Pretty happy as I am still better off with my HLG and QEX switch. If I did it again it would have been OCA I cut instead - but can't win them all. I either need more patience or more money!

[Beagle]

Global dairy prices up again overnight ...ninth auction in a row with positive results

Good signs for Heartland share price

Back to a positive correlation between GDT prices and HGH's price...no surprises there lol

[winner69]

Back to a positive correlation between GDT prices and HGH's price...no surprises there lol

Correlation never broke down ....just a bit of a longer lag at times

[pierre]

Wow - $125 million - that will fund a few reverse mortgages!

https://www.nzx.com/announcements/333035

[percy]

Wow - $125 million - that will fund a few reverse mortgages!

https://www.nzx.com/announcements/333035

Certainl will.
Very positive response from bond investors.

[horus1]

3.55% for 5 years
HGH will do well out of that.
Who invests at that rate.?

[Beagle]

3.55% for 5 years
HGH will do well out of that.
Who invests at that rate.?

Fixed interest investors who don't understand the Reserve Bank's open banking resolution and who have no idea that fixed interest also involves a very small degree of risk. Fantastic outcome for shareholders.

[pierre]

3.55% for 5 years
HGH will do well out of that.
Who invests at that rate.?

Not me - prefer to own part of the bank at close to 8% gross dividend plus a healthy capital gain. But plenty of reverse mortgages will be written at a much higher rate than 3.55%. NIM should be healthy this year.

[King1212]

3.55% for 5 years
HGH will do well out of that.
Who invests at that rate.?


Kiwisave fundies....with conservative sector....also investor that looking for fixed income and safe place to put thier money. Not everyone like to invest in the shares. Or hknow how to invest in share

[Baa_Baa]

Nice run up on SP, hope you’re also on board, this is one of those TA gifts that I have to admit the FAs saw a tad earlier than moi, but healthy gains already and a divi on top. All good for the meantime.

[Beagle]

Strike price for the Dividend Reinvestment Plan (DRP) in lieu of the cash dividend payable on 29 March 2019 is announced today as $1.4709 per share. I am happy with that. Likewise we get the compounding effect of more shares to take part in the next dividend, similar to the effect of the September 2018 dividend as reported on by Beagle,

I wonder how 'canny' those investors who received shares at $1.625 in the September dividend payment are feeling now though?

"Och Jock, I canny understand where all the promise of last years earnings went, that saw me accept shares at $1.625!"

I notice the HGH share price retreated to the HGH DRP price today. Not much arbitrage their for those who tried to exploit it.

SNOOPY Posted 253/19

This drip thingy looking more canny than a hungry Beagle now isn't it especially the extra shares at $1.47 very recently :)

[Fred_Rubble]

Look forward to the SP ascending back above the capital raise in 2017 @ $1.70 and the highest DRIP to date @ $1.77 in April 2018 - 1 year ago.

Long may the SP appreciation continue.

[minimoke]

Posted 253/19

This drip thingy looking more canny than a hungry Beagle now isn't it especially the extra shares at $1.47 very recently :)Happy days. With todays SP I am back in positive territory with the DRP a bit of cream on top. Onwards and upwards from here.

[percy]

Some notes from tonights HGH presentation.
Thank you Hobson Wealth.
Presenters Jeff Greensalade CEO HGH,and Chris Flood CEO Heartland Bank.
Motor vehicle lending.The 16% increase in motor vehicle lending was mainly because new car frachises promoted lending on new cars,ie one third now,one third in a year's time and one third in 2 years time.Therefore the average size loan increased from $18,000 to $23,000 and the loan security improved.Main dealerships are Holden and Jaguar/Land Rover.HGH are talking to other new vehicle franchises.
Equity ratios.We know Heartland Bank will require approx 15% .To make that up HGH can top that up.HGH equity ratio.To maintain their Credit rating HGH will most probably maintain approx the current level,ie approx 13% plus.
Business lending.Open for business growing strongly.Large business loans being replaced by more smaller loans.Again reducing risk.
General impairments must be taken at the beginning of each loan [up front],therefore a growing business such as HGH will show higher impairments,however this does not work out as higher actual realised loan losses.[same for TRA].
Revervse Equity Loans.HGH are still sourcing more long term funding arrangements.REL TV advertising in Australia is set to start in July.Jeff Greenslade sees still great potential in this growing market for HGH.HGH will be the only "major" REL business in Australia actively promoting RELs.
Capital Gains Tax.Should this come into force HGH see more capital retained in the home,and the home retained longer, which will see more people using RELs to access capital.
Both Jeff Greenslade and Chris Flood were very open and relaxed,and answered questions fully.
No mention was made of cows,milk fat price or any breed of dogs,which meant it was a pleasant informative presentation...lol..

[Baa_Baa]

Thanks for the update percy. Did any in the audience say thank you for doing such a great job and how much they appreciate the reversal of the SP recently, alongwith the sustained divi's and DRP with a discount. HGH are looking after their investors, it would be nice to know HGH know that, and that the investors appreciate it. Sorry I couldn't attend.