HGH - Heartland Group Holdings

[horus1]

Thanks , i have a lot ,and this is great info

[Fred_Rubble]

Much appreciated for the info percy!

[Southern_Belle]

Great job Percy.....much appreciated

[percy]

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.

Jeff Greensade did say he felt the market had become used them raising capital,and the sp was weak as another capital raise had been expected.
The new company structure meant they had other sources of capital.Under the old struture they had too much capital when they raised it,and then ran out of capital.
The presentation has become an annual event hosted by Hobson Wealth.Hobson Wealth did thank the presenters for keeping us all fully imformed ,and that we were all pleased to see the recovery of the share price,and the bright future outlook .
I think it would be fair to say most of the attendees have been HGH shareholders for a good number of years,and remain very pleased with their investment.

[iceman]

Thanks for the great summary Percy. Much appreciated

[CD_CHCH]

My thanks as well Percy. Heartland is one of the first companies I took a gamble on when dipping my toe into the sharemarket. I wish all my choices could have been as profitable as this one.

[Jay]

Good summary Percy, thank you.

Have not thought about this question too much, but with this 1/3, 1/3, 1/3 etc at no interest, how is Heartland making money on it, do the dealers pay a fee/interest or a certain % don't come up with the next instalment in 12 months and so effectively borrow again pay interest??
A few years ago we were looking at upgrading our vehicle (had the funds, but not available at the time) and Holden were offering (thru Heartland) no payments for 3 months, however, looking into it further, interest was still payable even if you paid it off at or just before the 3 month period ended.
P.S. Did not buy then and not a Holden either.

[percy]

Good summary Percy, thank you.

Have not thought about this question too much, but with this 1/3, 1/3, 1/3 etc at no interest, how is Heartland making money on it, do the dealers pay a fee/interest or a certain % don't come up with the next instalment in 12 months and so effectively borrow again pay interest??
A few years ago we were looking at upgrading our vehicle (had the funds, but not available at the time) and Holden were offering (thru Heartland) no payments for 3 months, however, looking into it further, interest was still payable even if you paid it off at or just before the 3 month period ended.
P.S. Did not buy then and not a Holden either.

Always the retailer ie Holden or Harvey Norman pays the interest.
ie No interest for so many years the retailer pays. I comes off their retail margin.

[whatsup]

Always the retailer ie Holden or Harvey Norman pay.
ie No interest for so many years the retailer pays. I comes off their retail margin.

I enjoyed a great deal with my last Holden ( run out ) purchase , 1/3,1/3,1/3 of the purchase price per year, 0% interest and was able to claim the GST in year 1 as it was a business car, will do again if available !

[Beagle]

Thanks for sharing about the presentation Percy.
My local Holden dealer told me a few weeks ago they did huge business over summer with the zero deposit, nothing to pay for 3 months and then 4.95% interest for 48 months deal. People had to pay retail price of course but they really went berserk over this deal he told me and he's done massive business. As we've discussed before the vast majority trade a vehicle in so there's usually a reasonable deposit paid via the trade in.

Been a great run since the low $1.30's including the dividend and now we're in the late $1.60's that suggests a FY19 PE of ~ 13 my sense is this is about fair value and a good hold for yield and eps growth in FY20. SP gains from here will require patience in my opinion. Gross forecast yield for FY20 assuming 9.5 cps in dividends = 7.85% at $1.68. Nothing wrong with that and we should see mid- late single digit eps growth next year too.

[percy]

I enjoyed a great deal with my last Holden ( run out ) purchase , 1/3,1/3,1/3 of the purchase price per year, 0% interest and was able to claim the GST in year 1 as it was a business car, will do again if available !

And claimed the depreciation...A great deal...

[Beagle]

Just a heads-up folks. HGH have dropped their interest rate on their call account to 2.25% from 2.5%.
They are still paying 3.45% for 9 month term deposits but for how much longer is anyone's guess ?

[minimoke]

Just a heads-up folks. HGH have dropped their interest rate on their call account to 2.25% from 2.5%.
?Which I am hoping is good news for the share market - to continue driving demand out of deposits and into equities. a 1.5% aftertax deposit return is nothing to get excited about.

(I wonder if we are getting close to the point where banks will charge us to look after our money)

[percy]

Talking to Jeff Greenslade after the presentation ,I managed to make him smile with my comment "it is better to own the bank rather than have money in the bank."............lol.

[BlackPeter]

(I wonder if we are getting close to the point where banks will charge us to look after our money)

This is what they are doing for some time in some European countries like e.g. Switzerland. I hear it is bloody difficult to rent in these countries a bank safe ... they are all taken ;);

[ziggy415]

What does the latest announcement mean

[winner69]

What does the latest announcement mean

Means they issued 125 million Capital Notes (bonds) at $1 each

Result of that recent Notes issue

That’s $125 million more in the bank

[ziggy415]

Means they issued 125 million Capital Notes (bonds) at $1 each

Result of that recent Notes issue

That’s $125 million more in the bank

Ah ok thanks

[oldtech]

Bit of a mystery to me why the SP has slumped today, to $1.60 ...

... but a good opportunity to top up for me. :t_up:

[percy]

The very successful bond issue resulted in HGH sp dropping 4,2% ie 7 cents today,to close at $1.58.??,,,.lol.
Not sure whether that is funny ha ha, or funny peculiar.?

[winner69]

The very successful bond issue resulted in HGH sp dropping 4,2% ie 7 cents today,to close at $1.58.??,,,.lol.
Not sure whether that is funny ha ha, or funny peculiar.?

Maybe market adjusting multiplies downwards a bit because of the higher leverage as a result of a significant amount of new debt (ie Heartland perceived to be more ‘risky’)

[percy]

Yet with their very high net interest margin, I would have thought the over subsribed bond issue would signal growing earnings.

[Baa_Baa]

Yet with their very high net interest margin, I would think they should be rerated upwards.
[more profitable].

And a massive cash warchest for investment into significant growth. The re-rate should resume shortly, once the nervous nellies and profit takers leave the room. Might not be significant but drilling into the 1 minute chart, the price action levelled off this afternoon after Friday's and this morning's dip into the recent stellar SP gains. Was always a good buy in the $1.30's, probably attracted a few traders, those nimble folks who can scalp a SP faster than a Apache.

[Beagle]

Some dog barked last week that the easy money from the low $1.30's had already been made. Maybe some people misinterpreted me thinking I was saying sell.
All I was suggesting is the value had shifted from being a BUY to being a good HOLD for both strong yield and strong high single digit eps growth.
Possibly an accumulate rating may be warranted soon...

[Ggcc]

Some dog barked last week that the easy money from the low $1.30's had already been made.
I believe the share price will be over $1.70 by Christmas if all continues to plan, which I think it is. I am happy with where ever the price goes, as I will buy more of the price heads far south of $1.50.

[percy]

I believe the share price will be over $1.70 by Christmas if all continues to plan, which I think it is. I am happy with where ever the price goes, as I will buy more of the price heads far south of $1.50.

I will see you, and raise you 10.......$1.80 plus.....as the plan gains momentum....................
Aussie REL tv advertising due to start in July.Be going gangbusters by September.
May be $1.90......?.............lol.
What is important to me is the divie.
Gross yield according to Craigs FY 2019.. 7.6% and FY 2020..... 8.2%..Tastie.

[oldtech]

Now down to $1.57 ... that's down 11 cents from Friday's high ... my "BUY" finger is hovering just millimetres from the keyboard ...

The thing is, I cannot see any reason for this drop. Did the SP just rise a bit too quickly and is now recalibrating? That's the only reason I can see; the SP rose very quickly over the past three weeks and is now falling back to the 50-day MA.

[Marilyn Munroe]

This post is a general observation and does not specifically relate to HGH.


Talking to Jeff Greenslade after the presentation ,I managed to make him smile with my comment "it is better to own the bank rather than have money in the bank."............lol.

"The Best Way to Rob a Bank is to Own One."(1)

Boop boop de do
Marilyn

1. https://en.wikipedia.org/wiki/William_K._Black

[BlackPeter]

Now down to $1.57 ... that's down 11 cents from Friday's high ... my "BUY" finger is hovering just millimetres from the keyboard ...

The thing is, I cannot see any reason for this drop. Did the SP just rise a bit too quickly and is now recalibrating? That's the only reason I can see; the SP rose very quickly over the past three weeks and is now falling back to the 50-day MA.

I think this is (at this stage) a plausible hypothesis. If you look at the chart below using MA30 and MA100, than it looks so far just as the natural oscillations in a healthy uptrend.

10477

If you take a bit longer term view the reddish (or is it purple? - anyway the upper) line in the chart below is the MA200) - than we see that the SP moved recently above the MA200 - and might be after a normal drop back top the MA200 ready to bounce again.

10478

I expect it to stay above the MA200 (at $1.57), but not too worried as long as it stays above the MA100 ($1.46). If it comes down to these levels I would see that as a serious reason to buy some more ... and I suppose I am not alone ;);

[winner69]

Global dairy prices up a tad but whole milk powder down a tad.

Whole milk powder prices been a bit weak last couple auctions after a pretty good run so far this year ....could be a sign that Heartland share price could be a bit weak the next month or so (maybe even started to be weak) after a pretty good run up the last month or so.

Bit spooky eh

[Ggcc]

If it goes lower I will be parking some of my A2 profits here. The story hasn’t changed and neither has the imputed dividend.

[beetills]

I see a question on another forum being asked about Greg Tomlinson.Is he the same bloke that has recently had an unreserved dispersal sale of his animals on Gavelhouse.?

[Beagle]

We know the Australian banks are facing quite a potential challenge from RBNZ in terms of their capital ratio, whereas even if RBNZ go to a 15% capital HGH can get there through its DRIP alone over the next 5 years.

If we look at the following three year forward PE comparison which is the average analyst view as presented on Market screener we see that generally speaking and taking the below Australian banks as a representative sample, there is no forecast eps growth for the Australian banks, actually a forecast 1.7% decline (average forward PE FY19 11.7, average forward PE FY21 11.9).

Comparing this with HGH we see the forward PE improving from FY19 of 12.3 to FY21 of 10.7 a 13% earnings improvement forecast over that 2 year period, average 6.5% per year.

Further, by FY21 HGH's PE at 10.7 will be 10% lower (10.7 v 11.9) than the Australian banks despite its quite considerably superior average growth rate.

Interestingly this compares with the FY19 PE being at 12.3 v the sector average of 11.7. I would at least expect that modest PE premium (5%) to be maintained so over the next two years I expect HGH to outperform the average performance of the Australian banks by ~ 15-20%.

The current modest PE premium to the sector average looks a little light to me given the seriousness of the capital adequacy challenge faced by the Australian banks with their operations here. I think HGH is an accumulate for growth and expect the forward yield to be 8.5% gross at the price of $1.55 assuming average forward dividends of 9.5 cps annually over the forecast period.
PE's for FY19, FY20, FY21
NAB 10.8, 10.3, 10.6
WBC 11.9, 11.0, 11.3
ANZ 11.2, 11.0, 11.3
CBA 12.8, 13.2, 13.8
BEN 11.7, 11.8, 12.2
BOQ 11.8, 12.0, 12.4
HGH 12.3, 11.4, 10.7

Full imputation credits are of course only available on HGH.
My rating is now accumulate.

P.S. I see fair value now at $1.62 and my one year price target is $1.73.

[oldtech]

Nice work Beagle!

I topped up yesterday at $1.58, today's price of $1.55 is even more compelling.

[winner69]

Cherise Barrie the new CFO

Wide and diverse range of credentials

No doubt selected on merit and best person for the job

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/334044/299203.pdf

[minimoke]

Cherise Barrie the new CFO

Wide and diverse range of credentials

No doubt selected on merit and best person for the job

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/334044/299203.pdfI liked the announcement until i got to"She is a passionate advocate of women in business, being a member of Global Womenand previously a Director and Treasurer for Dress for Success in Auckland." That is not a credential for being a CFO.

[Food4Thought]

I liked the announcement until i got to"She is a passionate advocate of women in business, being a member of Global Womenand previously a Director and Treasurer for Dress for Success in Auckland." That is not a credential for being a CFO.

Will help to lift the profile of HGH? Get them a more professional look? Management has had a good result so far and I see they are doing their bit again to ensure we see long term growth 👌

[minimoke]

Will help to lift the profile of HGH? I wouldn't think so. Or certainly no more so than any other competent Board member. That she belongs to a "Womens Club" (Global Women) should enable her to hold no opposition if someone wants to join a Mens Club.

As for being treasurer of DFS Auckland thats somewhat akin to being treasurer of the local scouts group so I dont put much value on that.

Would have much preferred to see "Cherise is a Chartered Accountant by profession and is currently the Chief Financial Officer of Aotal Limited.She has also held the role of Chief Financial Officer at Sovereign and Acting Chief Financial Officer and Financial Controller at Westpac. Prior to this she was in senior roles with ANZ National Bank in both Finance and the Financial Markets business. Her professional services experience was gained working with Pricewaterhouse, PricewaterhouseCoopers and KPMG. Cherise is a director on Sovereigns subsidiary company Boards and previously was on the board of a number of Westpac subsidiaries including Westpac Life. Cherise has broad experience engaging at the Board level developed across her career.
From a professional point of view, Cherise focusses on improving the performance of the company and creating high performing engaged teams whereby people develop themselves and their skillsets and in doing so setting themselves up for future positions.
Cherise is passionate about seeing people achieve their career aspirations and invests her spare time in mentoring individuals as well as facilitating a networking forum at Sovereign.

Get them a more professional look? If by that you mean washing out the old pale male, then yes. Other than that we should have confidence that at board level they already are professional. And if not the un-professional ones should be moved on.

[davflaws]

I liked the announcement until i got to"She is a passionate advocate of women in business, being a member of Global Womenand previously a Director and Treasurer for Dress for Success in Auckland." That is not a credential for being a CFO.

Maybe -depending on how well rounded you like your management team - but it is an excellent credential for being a decent human being.

[winner69]

Maybe -depending on how well rounded you like your management team - but it is an excellent credential for being a decent human being.

And increases the diversity of thinking within the management team. That is good.

And women are often said to be better at managing money than men ...good attribute for a CFO

[minimoke]

And increases the diversity of thinking within the management team. That is good.A cabbage would increase the diversity - and that aint necessarily good


And women are often said to be better at managing money than men ...good attribute for a CFOYou are a braver person than I am coming up with a stereotype like that!

[kiwico]

That she belongs to a "Womens Club" (Global Women) should enable her to hold no opposition if someone wants to join a Mens Club.

But you'll find that not her being able to access the latter would be a breach under our Human Rights Act but it would not be a breach if you were refused access to the former. [We have quite a racist and sexist Human Rights Act.]

[SilverBack]

We know the Australian banks are facing quite a potential challenge from RBNZ in terms of their capital ratio, whereas even if RBNZ go to a 15% capital HGH can get there through its DRIP alone over the next 5 years.

If we look at the following three year forward PE comparison which is the average analyst view as presented on Market screener we see that generally speaking and taking the below Australian banks as a representative sample, there is no forecast eps growth for the Australian banks, actually a forecast 1.7% decline (average forward PE FY19 11.7, average forward PE FY21 11.9).

Comparing this with HGH we see the forward PE improving from FY19 of 12.3 to FY21 of 10.7 a 13% earnings improvement forecast over that 2 year period, average 6.5% per year.

Further, by FY21 HGH's PE at 10.7 will be 10% lower (10.7 v 11.9) than the Australian banks despite its quite considerably superior average growth rate.

Interestingly this compares with the FY19 PE being at 12.3 v the sector average of 11.7. I would at least expect that modest PE premium (5%) to be maintained so over the next two years I expect HGH to outperform the average performance of the Australian banks by ~ 15-20%.

The current modest PE premium to the sector average looks a little light to me given the seriousness of the capital adequacy challenge faced by the Australian banks with their operations here. I think HGH is an accumulate for growth and expect the forward yield to be 8.5% gross at the price of $1.55 assuming average forward dividends of 9.5 cps annually over the forecast period.
PE's for FY19, FY20, FY21
NAB 10.8, 10.3, 10.6
WBC 11.9, 11.0, 11.3
ANZ 11.2, 11.0, 11.3
CBA 12.8, 13.2, 13.8
BEN 11.7, 11.8, 12.2
BOQ 11.8, 12.0, 12.4
HGH 12.3, 11.4, 10.7

Full imputation credits are of course only available on HGH.
My rating is now accumulate.

P.S. I see fair value now at $1.62 and my one year price target is $1.73.

Maybe the forward looking PEs are worth considering (estimations after all) but what about the credit ratings? HGH is on BBB from Fitch while ANZ, BNZ, ASB/CBA, WBC are on AA- or equivalent from S&P, Fitch and Moodys. In case you think this does not matter, I still smart from losing on South Canterbury with a BBB rating (investment grade, remember).

[iceman]

We know the Australian banks are facing quite a potential challenge from RBNZ in terms of their capital ratio, whereas even if RBNZ go to a 15% capital HGH can get there through its DRIP alone over the next 5 years.

If we look at the following three year forward PE comparison which is the average analyst view as presented on Market screener we see that generally speaking and taking the below Australian banks as a representative sample, there is no forecast eps growth for the Australian banks, actually a forecast 1.7% decline (average forward PE FY19 11.7, average forward PE FY21 11.9).

Comparing this with HGH we see the forward PE improving from FY19 of 12.3 to FY21 of 10.7 a 13% earnings improvement forecast over that 2 year period, average 6.5% per year.

Further, by FY21 HGH's PE at 10.7 will be 10% lower (10.7 v 11.9) than the Australian banks despite its quite considerably superior average growth rate.

Interestingly this compares with the FY19 PE being at 12.3 v the sector average of 11.7. I would at least expect that modest PE premium (5%) to be maintained so over the next two years I expect HGH to outperform the average performance of the Australian banks by ~ 15-20%.

The current modest PE premium to the sector average looks a little light to me given the seriousness of the capital adequacy challenge faced by the Australian banks with their operations here. I think HGH is an accumulate for growth and expect the forward yield to be 8.5% gross at the price of $1.55 assuming average forward dividends of 9.5 cps annually over the forecast period.
PE's for FY19, FY20, FY21
NAB 10.8, 10.3, 10.6
WBC 11.9, 11.0, 11.3
ANZ 11.2, 11.0, 11.3
CBA 12.8, 13.2, 13.8
BEN 11.7, 11.8, 12.2
BOQ 11.8, 12.0, 12.4
HGH 12.3, 11.4, 10.7

Full imputation credits are of course only available on HGH.
My rating is now accumulate.

P.S. I see fair value now at $1.62 and my one year price target is $1.73.

Good post Beagle. No question in my view that HGH is and has been for a long time, a very good long term investment. Probably quite fully priced at the moment but a good steady dividend payer.
Having said that, I am a little intrigued that HGH is relying quite a lot on SH taking up the DRIP with regard to the expected capital ratio. Would it not be more prudent to simply lower the dividend payout ? I realise this would not go down well with many SH but how will the deal with it if SH do not take up the DRIP ?

[dabsman]

Good post Beagle. No question in my view that HGH is and has been for a long time, a very good long term investment. Probably quite fully priced at the moment but a good steady dividend payer.
Having said that, I am a little intrigued that HGH is relying quite a lot on SH taking up the DRIP with regard to the expected capital ratio. Would it not be more prudent to simply lower the dividend payout ? I realise this would not go down well with many SH but how will the deal with it if SH do not take up the DRIP ?

Correct me if I'm wrong (and every ex-gf would assume I was) but arent they talking about current DRP uptake? Not if everyone was on DRP?

[Beagle]

Good post Beagle. No question in my view that HGH is and has been for a long time, a very good long term investment. Probably quite fully priced at the moment but a good steady dividend payer.
Having said that, I am a little intrigued that HGH is relying quite a lot on SH taking up the DRIP with regard to the expected capital ratio. Would it not be more prudent to simply lower the dividend payout ? I realise this would not go down well with many SH but how will the deal with it if SH do not take up the DRIP ?

Thanks Iceman. DRIP current level of take-up is sufficient to achieve the current RBNZ's target capital rate of 15% but I expect the RBNZ will lower that rate.
DRIP take-up rates can be encouraged if necessary, as I am sure you appreciate, through varying the discount level of new shares in lieu of dividend.
I think a lot of retired and semi retired folk rely on the dividend income from high yielding stocks like HGH to support a comfortable lifestyle and its likely that the directors of HGH are cognisant of that. I don't think they need to do anything. Shares currently right about fair value in my opinion.

[winner69]

Interesting article

Nothing to do with Heartland but interesting

https://www.smh.com.au/business/banking-and-finance/rich-guys-are-most-likely-to-have-no-idea-what-they-re-talking-about-study-suggests-20190504-p51k1i.html

[peat]

And increases the diversity of thinking within the management team. That is good.




A cabbage would increase the diversity - and that aint necessarily good



A cabbage would not increase the 'diversity of thinking' so you'll need to be a little more inventive and try to reduce the number of angry-old-man rant farts

Quite frankly - it still makes me nervous how David Mackrell came and went so quickly

[peat]

Interesting article

https://www.smh.com.au/business/banking-and-finance/rich-guys-are-most-likely-to-have-no-idea-what-they-re-talking-about-study-suggests-20190504-p51k1i.html

Is there any particular reason why you put this article about BS'ers into the HGH thread?

re that article though I'd be much more interested in the results from an older sample of people. Teenagers are notorious BS'ers , and I note that I would've claimed expertise in at least two of those three fictitious areas of maths. And I dont consider myself a BS'er (though self evaluation is often flawed).

[minimoke]

A cabbage would not increase the 'diversity of thinking' so you'll need to be a little more inventive and try to reduce the number of angry-old-man rant farts
You must have missed the diversity memo. Its all about difference from the norm and nothing about competence

[BlackPeter]

You must have missed the diversity memo. Its all about difference from the norm and nothing about competence

I think this is just your personal interpretation. No wonder it does not work for you :p;

[minimoke]

I think this is just your personal interpretation. No wonder it does not work for you :p; This may help you "The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. It is the exploration of these differences in a safe, positive, and nurturing environment. It is about understanding each other and moving beyond simple tolerance to embracing and celebrating the rich dimensions of diversity contained within each individual.

Diversity is a reality created by individuals and groups from a broad spectrum of demographic and philosophical differences. It is extremely important to support and protect diversity because by valuing individuals and groups free from prejudice, and by fostering a climate where equity and mutual respect are intrinsic.
"Diversity" means more than just acknowledging and/or tolerating difference. Diversity is a set of conscious practices that involve:


Understanding and appreciating interdependence of humanity, cultures, and the natural environment.
Practicing mutual respect for qualities and experiences that are different from our own.
Understanding that diversity includes not only ways of being but also ways of knowing;
Recognizing that personal, cultural and institutionalized discrimination creates and sustains privileges for some while creating and sustaining disadvantages for others;
Building alliances across differences so that we can work together to eradicate all forms of discrimination.

Diversity includes, therefore, knowing how to relate to those qualities and conditions that are different from our own and outside the groups to which we belong, yet are present in other individuals and groups. These include but are not limited to age, ethnicity, class, gender, physical abilities/qualities, race, sexual orientation, as well as religious status, gender expression, educational background, geographical location, income, marital status, parental status, and work experiences. Finally, we acknowledge that categories of difference are not always fixed but also can be fluid, we respect individual rights to self-identification, and we recognize that no one culture is intrinsically superior to another."

And if you look through you wont see the word "competent" anywhere: http://www.qcc.cuny.edu/diversity/definition.html (its a pretty typical definition of Diversity nowadays)

[BlackPeter]

This may help you "The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences. These can be along the dimensions of race, ethnicity, gender, sexual orientation, socio-economic status, age, physical abilities, religious beliefs, political beliefs, or other ideologies. It is the exploration of these differences in a safe, positive, and nurturing environment. It is about understanding each other and moving beyond simple tolerance to embracing and celebrating the rich dimensions of diversity contained within each individual.

Diversity is a reality created by individuals and groups from a broad spectrum of demographic and philosophical differences. It is extremely important to support and protect diversity because by valuing individuals and groups free from prejudice, and by fostering a climate where equity and mutual respect are intrinsic.
"Diversity" means more than just acknowledging and/or tolerating difference. Diversity is a set of conscious practices that involve:


Understanding and appreciating interdependence of humanity, cultures, and the natural environment.
Practicing mutual respect for qualities and experiences that are different from our own.
Understanding that diversity includes not only ways of being but also ways of knowing;
Recognizing that personal, cultural and institutionalized discrimination creates and sustains privileges for some while creating and sustaining disadvantages for others;
Building alliances across differences so that we can work together to eradicate all forms of discrimination.

Diversity includes, therefore, knowing how to relate to those qualities and conditions that are different from our own and outside the groups to which we belong, yet are present in other individuals and groups. These include but are not limited to age, ethnicity, class, gender, physical abilities/qualities, race, sexual orientation, as well as religious status, gender expression, educational background, geographical location, income, marital status, parental status, and work experiences. Finally, we acknowledge that categories of difference are not always fixed but also can be fluid, we respect individual rights to self-identification, and we recognize that no one culture is intrinsically superior to another."

And if you look through you wont see the word "competent" anywhere: http://www.qcc.cuny.edu/diversity/definition.html (its a pretty typical definition of Diversity nowadays)

I can see why you emphasize the thinking of a cabbage.

Seriously - did anybody state that diversity is the ONLY requirement? So - why would there be a need for competence being part of the definition of diversity?

But anyway - that's all not really topical for this thread ...

[winner69]

Minimoke me old mate ....you seem to be the only one who brings up the subject of ‘competence’ whenever diversity is raised.

I’m sure Cherise is very competent and will serve Heartland well

[minimoke]

Seriously - did anybody state that diversity is the ONLY requirement? So - why would there be a need for competence being part of the definition of diversity?
.Because when you are hiring someone the gold standard is "Competence", anything less ought to be irrelevant (eg treasurer of some local charity if you are being appointed as a CFO)

[minimoke]

Minimoke me old mate ....you seem to be the only one who brings up the subject of ‘competence’ whenever diversity is raised.

I’m sure Cherise is very competent and will serve Heartland wellShe certainly does appear to be very competent and will add value as a CFO. So there is absolutely no need for you to bring the issue of "diversity" into the discussion as you did with your post at 12298

[percy]

CFO is a huge position to hold at HGH.
Appears to me they have appointed a more than capable person.

[BlackPeter]

Because when you are hiring someone the gold standard is "Competence"

Absolutely - competence is a "must have", but it certainly is not the only criterion to select the best candidate. I'd rate as well soft skills, resilience, leadership, organisational skills and (depending on the role) the candidates contribution to team diversity ...


... anything less ought to be irrelevant (eg treasurer of some local charity if you are being appointed as a CFO)

anything less, yes, but what if several candidates are "competent"? All other things being equal (or at least good enough) , improving team diversity could well be the icing on the cake?

But I am sure you knew that ...

[winner69]

Absolutely - competence is a "must have", but it certainly is not the only criterion to select the best candidate. I'd rate as well soft skills, resilience, leadership, organisational skills and (depending on the role) the candidates contribution to team diversity ...



anything less, yes, but what if several candidates are "competent"? All other things being equal (or at least good enough) , improving team diversity could well be the icing on the cake?

But I am sure you knew that ...

Good thoughts BP

One good thing with Heartland is that ‘competent’ people at least get a go at those jobs — many / some organisations seem to exclude (ie don’t consider) some competent people (albeit in many cases not knowing they are doing so)

[percy]

Well a great day for me with TRA and SKL each being up 3 cents today.
But "at the end of the day" I am well down, with HGH falling 5 cents..............lol.
I look forward to tomorrow.?

[winner69]

Global Dairy Price auction saw prices up , although wmp down a tad.

Prices been increasing the last few months but the increases have been getting a bit less recently ...just the Heartland share price.

Outlook still positive for dairy the man on the radio said this morning ...that’s a good sign for Heartland share price as we head into the full year profit announcement

[RTM]

...that’s a good sign for Heartland share price as we head into the full year profit announcement

Do we have a date for that yet Winner ? Had a quick look...can't see anything.

[Baa_Baa]

Global Dairy Price auction saw prices up , although wmp down a tad.

Prices been increasing the last few months but the increases have been getting a bit less recently ...just the Heartland share price.

Outlook still positive for dairy the man on the radio said this morning ...that’s a good sign for Heartland share price as we head into the full year profit announcement

Might need more than just that on a bigly US down day. 😳

[winner69]

Might need more than just that on a bigly US down day. 😳

Don’t worry about the day to day ups and downs baa_baa ..... the weekly / monthly picture will be OK

[ziggy415]

I see 17000 trades of hbl shares in aussie yesterday..... up 14%.......well it's a start....nz volume not too shabby either last few days, ..must be time for an update soon as to how their aussie plans are going

[minimoke]

I see 17000 trades of hbl shares in aussie yesterday..... up 14%.......well it's a start....nz volume not too shabby either last few days, ..must be time for an update soon as to how their aussie plans are going
Only traded at AUD $1.50 or NZD $1.58

[King1212]

Saw HGH ad on TV ...their senior loan is kicking off...

[Baa_Baa]

Don’t worry about the day to day ups and downs baa_baa ..... the weekly / monthly picture will be OK

Right you are, HGH remarkably resilient, gone back to my fav weekly chart. Not a bank really eh, would have been canned, so getting back to its finance roots good for shareholders. Wonder if they should just ditch the whole retail banking thing, with its big overheads and massive competition, limited bottom line contribution, esp when they’ve cornered a nice niche in demand that the bankers don’t want to touch. Happy having bought the big dip, second time ride on this. Ok so far.

[winner69]

Global Dairy Prices down over night

Prices seem to have peaked in this cycle......but current prices about 20% higher than the last low ...just like the Heartland share price

Spooky eh err

[Ggcc]

Interesting article

https://www.newsroom.co.nz/2019/05/26/606166/rbnz-proposals-will-add-6000-a-year-to-mortgage

I believe HGH seem better prepared if it did happen

[winner69]

Heartland must be due to announce a profit upgrade

The $73m to $75m must be out of date by now ....after all they’ve got all that extra money to play with, you’d hope they would be making money on it eh

[iceman]

Reverse mortgage competition heating up !! https://www.interest.co.nz/banking/100055/ceo-shaun-drylie-says-sbs-bank-sees-both-gap-market-and-growing-need-reverse

[percy]

Reverse mortgage competition heating up !! https://www.interest.co.nz/banking/100055/ceo-shaun-drylie-says-sbs-bank-sees-both-gap-market-and-growing-need-reverse

Extremely positive as it will help with awareness, which will grow the REL market.

[iceman]

Extremely positive as it will help with awareness, which will grow the REL market.

Yes my thinking as well. Only good for HGH that more of the smaller operators are advertising this type of product

[beetills]

NBR headline today
HEARTLAND chasing 12.8 m from Christina Domecq.

[winner69]

NBR headline today
HEARTLAND chasing 12.8 m from Christina Domecq.

It’s one big tangled web in a mess

No doubt Heartland knew what they were doing ......

No worries though ......fully provided for and it’s only a drop in the ocean anyway

[percy]

It’s one big tangled web in a mess

No doubt Heartland knew what they were doing ......

No worries though ......fully provided for and it’s only a drop in the ocean anyway

Maybe one of the reasons they altered their lending to more smaller business loans.

[winner69]

Maybe one of the reasons they altered their lending to more smaller business loans.

These loans in the trade were described as ‘large relationship lending’

Hope they weren’t totally seduced by a smiling chick.

[percy]

These loans in the trade were described as ‘large relationship lending’

Hope they weren’t totally seduced by a smiling chick.

Don't we all..!!

[percy]

Global Dairy Price auction saw prices up , although wmp down a tad.

Prices been increasing the last few months but the increases have been getting a bit less recently ...just the Heartland share price.

Outlook still positive for dairy the man on the radio said this morning ...that’s a good sign for Heartland share price as we head into the full year profit announcement

Diary prices down the past three days.
HGH share price up.

[winner69]

Diary prices down the past three days.
HGH share price up.

Ha ha .....the correlation is not a day to day one ....it’s a long term one.

Yes are correct in that Global Dairy Prices down again over night

Prices seem to have peaked in this cycle......but current prices about 20% higher than the last low ...just like the Heartland share price. That’s spooky eh

And even after today’s price ‘explosion’ the Heartland share price is still below where it was in April

Hope the share price keeps going up in leaps and bounds....probably will seeing Beagle starting to talk about it again.

[percy]

Full moon was 17th June,
Sort of explains things....lol

[winner69]

Full moon was 17th June,
Sort of explains things....lol

Equinox on Sunday as well

[IAK]

.
Hope the share price keeps going up in leaps and bounds....probably will seeing Beagle starting to talk about it again.

Well you won't hear him talking about it on this forum lol.

[winner69]

Percy ...remember the run on the Countrywide Building Society

https://croakingcassandra.com/2019/06/22/a-run-on-the-bank-well-building-society/

[percy]

Percy ...remember the run on the Countrywide Building Society

https://croakingcassandra.com/2019/06/22/a-run-on-the-bank-well-building-society/

No I had completely forgotten it.
Had good dealings with them in 90s.
National Bank,who we banked with,started charging a cash handling fee for deposits.
At the time I was doing the banking etc for two Lotto shops,so it was a considerable amount.
We moved to Countrywide because they waved the fee, as they said it saved them having to get cash delivered.

[whatsup]

No I had completely forgotten it.
Had good dealings with them in 90s.
National Bank,who we banked with,started charging a cash handling fee for deposits.
At the time I was doing the banking etc for two Lotto shops,so it was a considerable amount.
We moved to Countrywide because they waved the fee, as they said it saved them having to get cash delivered.


I had C W as a tenant and this is what I was told by an executive of C W, a team from C W went over to the U K to discuss with Lloyds bank who owned National Bank the possibility of C W taking over National Bank, as discussions progressed N B floated the possibility of N B taking over C W, the team said to Lloyds yes that could be if there was a very substantial offer , the rest is history.
C W was taken over by Nat Bank then a few years later ANZ took over Nat Bank and that is how ANZ comes to be N Z largest bank.

[iceman]

Heartland secures another A$ 250M to fund the fast growing reverse mortgage business in Aussie

[percy]

Heartland secures another A$ 250M to fund the fast growing reverse mortgage business in Aussie

Timely with HGH's Aussie REL TV advertising about to,or already,started.

[ziggy415]

Timely with HGH's Aussie REL TV advertising about to,or already,started.
The full available figure is reported as $850 million but with only 18000 policies over 15 years that seems a rather large amount, unless your going to buy a ready made portfolio from someone else who decided not to offer that type of product anymore

[iceman]

The full available figure is reported as $850 million but with only 18000 policies over 15 years that seems a rather large amount, unless your going to buy a ready made portfolio from someone else who decided not to offer that type of product anymore

Not sure how relevant the last 15 years numbers are. In the last couple of years 3 of the major competitors in Aussie have withdrawn from the REL business leaving Heartland as a major player. They have been growing this business in Australia by over 20% p.a. recently and are now starting a big advertising campaign to increase awareness even further and are well funded to to write more mortgages. Additionally, the Australian Government has made clear they see reverse mortgages as part of the future to deal with large numbers of people in retirement.
We are well positioned :-)

[peat]

Not sure how relevant the last 15 years numbers are. In the last couple of years 3 of the major competitors in Aussie have withdrawn from the REL business leaving Heartland as a major player. They have been growing this business in Australia by over 20% p.a. recently and are now starting a big advertising campaign to increase awareness even further and are well funded to to write more mortgages. Additionally, the Australian Government has made clear they see reverse mortgages as part of the future to deal with large numbers of people in retirement.
We are well positioned :-)

with the property market having done so well in the medium term with so many aging owners rich with cashless equity this is going to be a fantastic option for lots of people. I agree this is a real gift on a platter for Heartland. Yes there will be paperwork challenges and regulatory diligence needing to be well attended to.
I recall Snoopy saying this was a cashflow negative operation and at the end of the day cash flow was all that mattered but there must be good money to be made from usury at these higher rates (it seems that the market accepts higher rates than first mortgages even though the risk is actually a lot less due to very low LVR's involved).
I am not super keen on Heartland though but am really keen on a reverse mortgage business in Australia!

[percy]

Both you and Snoopy would better understand HGH's RELs should you read HGH's presentation of November 19th 2018.
Some simple points,when comparing to standard mortgages.
Shorter loan term length ,........Lessens risk.
Lower LVR............................Lessens risk.
Higher net margin...................More profitable.Better use of capital.

[dabsman]

Both you and Snoopy would better understand HGH's RELs should you read HGH's presentation of November 19th 2018.
Some simple points,when comparing to standard mortgages.
Shorter loan term length ,........Lessens risk.
Higher LVR............................Lessens risk.
Higher net margin...................More profitable.Better use of capital.

Lower LVR I think you mean mate. Yes credit is recycled much faster in REL scenarios

[percy]

Lower LVR I think you mean mate. Yes credit is recycled much faster in REL scenarios

Thank you.
I certainly got that wrong.!!!!
Have altered my post.

[iceman]

Yes Percy all good and accurate points but I think Peat and Snoopy make a fair point that these mortgages are capital intensive with no immediate repayments. But on the other hand, the term is very short (before the mortgage is FULLY repaid) and I think that is a fact many are overlooking. Having split this business from the bank in NZ, allowing them to diversify borrowing in the current low interest environment makes this a great business to be invested in.

[percy]

Yes Percy all good and accurate points but I think Peat and Snoopy make a fair point that these mortgages are capital intensive with no immediate repayments. But on the other hand, the term is very short (before the mortgage is FULLY repaid) and I think that is a fact many are overlooking. Having split this business from the bank in NZ, allowing them to diversify borrowing in the current low interest environment makes this a great business to be invested in.

You are right to point out these mortgages are capital intensive.
I thought after I had posted I was wrong to brush Peat's concerns off.
Although the average term of RELs is around or under 10 years, compared with 20 to 30 year standard mortgages they are incuring deferred interest.ie the people taking them out do not pay interest on the amount borrowed until such time as the loan is repaid.Two things we must remember is HGH must pay the interest during the term on their borrowings from capital,or from other income.The other thing is HGH must not borrow short and lend long.I note on this announcement and previous announcements they stress they are sourcing longer term funding.
I will go back to the length of the loans again.The average loan is say 10 years,however some are longer term,but we know a great number are only for 3 or 4 years.This means HGH can recycle the repaid loan, together with accumulated interest very quickly,so the capital intensive lessens.
The huge growth HGH are achieving, will put some pressure on capital in the short term,however it has not hindered HGH capacity to increase funding.
This is because lenders see HGH's RELs as a very safe and profitable financial product,gaining in demand from the asset rich,cash poor older generation who want to enjoy their later years.

[JohnnyTheHorse]

What a great yield play in the current environment. A bonus that capital appreciation is outpacing dividends too! I have been accumulating more...

[horus1]

Same herte ,bought today

[RTM]

Same herte ,bought today

Already have to many....otherwise I would have topped up a while ago.

[janner]

Already have to many....otherwise I would have topped up a while ago.


My problem also RTM. Common sense has to kick in at some time though..

Relying on eggs in one basket is not recommended by so many of the wise men who have gone before us.

Being one of the believers .. Still holding from the beginning... ( Minus a few because of trembles ).
I am more than happy..

Happy enough to continue supporting their DRP.. Compound interest :-))).

[RTM]

10.5% of my portfolio. The biggest by 4%.
That’s plenty, yes, I’ve held and added from inception as well.
If they get to 2.10 odd...I’ll probably lighten up a bit.

[horus1]

17% of portfolio but have a limit of 25% in any one share . EBO sits at about 20%
Will top up on heartland , have over a Million
I look at the cost when doing the %

[percy]

17% of portfolio but have a limit of 25% in any one share . EBO sits at about 20%
Will top up on heartland , have over a Million
I look at the cost when doing the %

Love the "I look at the cost when doing the %",makes me feel not so bad.
I remember the book: The Gnomes of Zurich recommendation; "put all your eggs in one basket,and watch it carefully."........lol.

[janner]

Love the "I look at the cost when doing the %",makes me feel not so bad.
I remember the book: The Gnomes of Zurich recommendation; "put all your eggs in one basket,and watch it carefully."........lol.

Love watching those DRP shares that keep growing..

[Ggcc]

17% of portfolio but have a limit of 25% in any one share . EBO sits at about 20%
Will top up on heartland , have over a Million
I look at the cost when doing the %

You’ll be one of the top 50 shareholders then, other than institutions or directors. Well done to you fine sir/madam

[horus1]

They are various places for our kids.

[IAK]

HGH 13% of my portfolio, second to Meridian at 21%. Happy days :)

[Joshuatree]

Holding both of those, the first one i hold percy responsible for;); with a time limit on Heartland linked to my wellbeing(alive) index:t_up:

[beetills]

Anybody know who the $250m funder is or likely to be.
Shouldn't that be divulged or is it sensitive.

[Leftfield]

17% of portfolio but have a limit of 25% in any one share . EBO sits at about 20%
Will top up on heartland , have over a Million
I look at the cost when doing the %

Very impressive. Congratulations. Something for us all to aspire to. (ps I like the 25% limit on holding size, I'm wary of over diversification!)

[RTM]

17% of portfolio but have a limit of 25% in any one share . EBO sits at about 20%
Will top up on heartland , have over a Million
I look at the cost when doing the %

Wow...that's a lot of Heartland shares. Congratulations !
Interesting way of looking at the portfolio % Horus, thanks for sharing. For me this would I think defeat the purpose of making sure that nothing is getting to too big a % of my portfolio. It won't be easy to sell tho, that's for sure.

[Jim]

Holding both of those, the first one i hold percy responsible for;); with a time limit on Heartland linked to my wellbeing(alive) index:t_up:

Dropped 2.4 % today to $1.60 time to top for the FY result ?

[percy]

Dropped 2.4 % today to $1.60 time to top for the FY result ?

Well sitting on 100 day MA .If it drops it may go down to 180 ma at $1.52.
In under two months time you should receive a fully imputed 5 cents divie,and at the end of March next year,ie 8 months time a 4 cent divie.
So buying now you should receive a minimum of 9 cents fully imputed dives.Nice,well worth taking advantage of.

[Baa_Baa]

Well sitting on 100 day MA .If it drops it may go down to 180 ma at $1.52.
In under two months time you should receive a fully imputed 5 cents divie,and at the end of March next year,ie 8 months time a 4 cent divie.
So buying now you should receive a minimum of 9 cents fully imputed dives.Nice,well worth taking advantage of.

Interesting logic, already 12cps loss from recent peak, but wait 8 months to get 9cps back.

[percy]

Interesting logic, already 12cps loss from recent peak, but wait 8 months to get 9cps back.
As they say "it really works."
No loss as we have not sold any,we just keep buying.
Why would we ever sell any,?

[Baa_Baa]

As they say "it really works."
No loss as we have not sold any,we just keep buying.
Why would we ever sell any,?

Right, I keep forgetting it doesn’t matter what the SP is as long as it’s not zero … lol. Value investing for the long term is such a big mind shift from momentum trading to grow capital and holdings.

[percy]

Right, I keep forgetting it doesn’t matter what the SP is as long as it’s not zero … lol. Value investing for the long term is such a big mind shift from momentum trading to grow capital and holdings.

I can only share what works and does not work for me.
A great number of people invest differently than me.You just have to work out works for you and stick to that system.
I note a large number of people plant their vegetable garden by moon cycles.Perhaps investing in the share market using moon cycles may be worth you investigating....lol.

[Baa_Baa]

I can only share what works and does not work for me.
A great number of people invest differently than me.You just have to work out works for you and stick to that system.
I note a large number of people plant their vegetable garden by moon cycles.Perhaps investing in the share market using moon cycles may be worth you investigating....lol.

Yes different strokes for different folks. Forget the moon cycles unless you like howling at it, lol 😂

[percy]

Yes different strokes for different folks. Forget the moon cycles unless you like howling at it, lol ��

Just laughing my head off.!!
Better not add anything else.?!..lol.

[Snow Leopard]

Interesting logic, already 12cps loss from recent peak, but wait 8 months to get 9cps back.


...Value investing for the long term is such a big mind shift from momentum trading to grow capital and holdings.

I am always impressed by the ability of momentum traders to always be able to pick the absolute tops and get out on them.
:lol:

Disc: Bought a few, sold fewer, and been on the register continuously for over 5 years now.

[iceman]

I am always impressed by the ability of momentum traders to always be able to pick the absolute tops and get out on them.
:lol:

Disc: Bought a few, sold fewer, and been on the register continuously for over 5 years now.

Agree Snow Leopard. Wish I could pick them like that. Having said that, I'm pleased with my largely buy and hold in this one since it the ticker before HNZ (BSH from memory) with several additions. Only sold once when it went over $ 2.00 but have restored my previous holding and no intention of selling any of them anytime soon.

[beetills]

Been a shareholder since the days of the CBS/SouthernCross takeover.
Have kept my original shares and added at 47c,87c,134c,and 165c.Have now sold all other purchases but not the originals.
Reasonably pleased with the direction they are going.Only disappointment for me has been that i didn't buy more at 47c but then i am just to conservative.

[ziggy415]

Well sitting on 100 day MA .If it drops it may go down to 180 ma at $1.52.
In under two months time you should receive a fully imputed 5 cents divie,and at the end of March next year,ie 8 months time a 4 cent divie.
So buying now you should receive a minimum of 9 cents fully imputed dives.Nice,well worth taking advantage of.
Geez percy... had me going there for a while.....its already 9 cents.....5.5 soon and 3.5 in 8 months.....has a little birdy told you it will be 4 cents for the interim or is that wishful thinking

[percy]

My guesses as the the final and interim divies are best described as "uneducated."
Will the increase the divies,or will they keep them at the same level, to keep their equity ratios increasing?
Don't know,and will accept either.!

[horus1]

Is the share price drop due to an equity raise ? Does anybody know,it was just after an announcement about bank ratios from one of the AU banks it started to drop. Have alot and holding looking to buy more.

[percy]

Is the share price drop due to an equity raise ? Does anybody know,it was just after an announcement about bank ratios from one of the AU banks it started to drop. Have alot and holding looking to buy more.

Before the last interim result,HGH's share price fell, as the market felt HGH would need to raise more capital.
CEO Jeff Greenslade's comments, that shareholders taking up DRP alone would be enough to bring HGH's equity ratio to the Reserve Bank's required % for HBL, should be kept in mind,as to the fact they have raised extra funds via bonds etc in Australia to fund the growth of Australian RELs.
The very strong growth HGH are achieving, will mean at some stage they will require more capital.Whether that is sooner or later I do not know.
I believe HGH's REL Australian TV advertising has started.Maybe a bit too early for them to comment on the results, although I would think the results would be instantaneous..

[janner]

Before the last interim result,HGH's share price fell, as the market felt HGH would need to raise more capital.
CEO Jeff Greenslade's comments, that shareholders taking up DRP alone would be enough to bring HGH's equity ratio to the Reserve Bank's required % for HBL, should be kept in mind,as to the fact they have raised extra funds via bonds etc in Australia to fund the growth of Australian RELs.
I believe HGH's REL Australian TV advertising has started.Maybe a bit too early for them to comment on the results, although I would think the results would be instantaneous..

Not good..

https://www.youtube.com/watch?v=-ql70aiPdWU

Disc. Holding.

[beetills]

This might sound strange but this could be classified as good news for HBLs reverse mortgages or am i looking at this from the wrong angle.

[percy]

This might sound strange but this could be classified as good news for HBLs reverse mortgages or am i looking at this from the wrong angle.

Agreed.
Neither the old chap,or the solo mum would have qualified for a REL loan.
Both were very unwise.The old chap for taking out a mortgage at his age,and the young solo mum keeping the house she could not afford.No.1 daughter was in the same situation after her marriage break up.I was more than surprised at the amount of money a bank was prepared to lend her.I told her straight she would not be able to afford any mortgage on her single income.Fortunately, the wife and I were in a position to pay out her ex, and pay off her existing mortgage.
An elderly person taking out a REL can only borrow certain % of their house's value depending on their age.
There is no requirement for them to make any repayments, until they either sell the house,or they die..

[iceman]

I think you have a point Percy that the market may be wary of a posible capital raise, hence the easing in SP. I would look at a capital raise as further proof the REL´s are going gangbusters and would happily take part. But I don´t expect it just yet.
Meanwhile I would like them to keep divies at same level, not increase them. In fact I´d like them to reduce divies but accept Mr Market may not like that so probably not the best move.

[percy]

I think you have a point Percy that the market may be wary of a posible capital raise, hence the easing in SP. I would look at a capital raise as further proof the REL´s are going gangbusters and would happily take part. But I don´t expect it just yet.
Meanwhile I would like them to keep divies at same level, not increase them. In fact I´d like them to reduce divies but accept Mr Market may not like that so probably not the best move.

I think you sum up my thoughts better than I can express myself.

[Baa_Baa]

I think you have a point Percy that the market may be wary of a posible capital raise, hence the easing in SP. I would look at a capital raise as further proof the REL´s are going gangbusters and would happily take part. But I don´t expect it just yet.
Meanwhile I would like them to keep divies at same level, not increase them. In fact I´d like them to reduce divies but accept Mr Market may not like that so probably not the best move.

Full year results announce next week, Friday 15th. With HGH trading around its 200MA, that's saying market is 'unsure' how the year has panned out. Uncertain macroeconomics probably not helping lately either, but notwithstanding that I'm expecting a very positive result, particularly interested in the Oz REL's performance, and being on the DRP I hope for a nice payout to grow my holdings.

[RGR367]

Full year results announce next week, Friday 15th. ..............

15th is Thursday. But yeah, expecting a good report too.

[janner]

Full year results announce next week, Friday 15th. With HGH trading around its 200MA, that's saying market is 'unsure' how the year has panned out. Uncertain macroeconomics probably not helping lately either, but notwithstanding that I'm expecting a very positive result, particularly interested in the Oz REL's performance, and being on the DRP I hope for a nice payout to grow my holdings.

Being Ex Royal Navy... All that I can add to the conversation this late in the game is.....

Steady Boy's... Steady.....

Disc. Holding " STILL "...
Hoping for the SP to go lower, so that the DRP is worth that much more.
Boring I know... But profitable.. Aye perc ?.

[percy]

Being Ex Royal Navy... All that I can add to the conversation this late in the game is.....

Steady Boy's... Steady.....

Disc. Holding " STILL "...
Hoping for the SP to go lower, so that the DRP is worth that much more.
Boring I know... But profitable.. Aye perc ?.

Yes,you have certainly been very profitable by being boring.
You are a role model for me.......lol.

[janner]

Yes,you have certainly been very profitable by being boring.
You are a role model for me.......lol.

So little cricket... You have not learnt much..

Time for you to concentrate..

[Ggcc]

We should be getting some results today...... anytime soon??

[Benny1]

We should be getting some results today...... anytime soon??

Think it was mid-morning before the results came through last year.
Abit annoying.. Don't know why these announcements aren't available in plenty of time before the market opens for play.

[McGinty]

Think it was mid-morning before the results came through last year.
Abit annoying.. Don't know why these announcements aren't available in plenty of time before the market opens for play.

Just looked back and last year FY18 results were released at 8:33am.

[Ggcc]

Think it was mid-morning before the results came through last year.
Abit annoying.. Don't know why these announcements aren't available in plenty of time before the market opens for play.
Half year results were posted 9.02am. Is it a glitch in the nzx that it is not showing?

[Cricketfan]

Half year results were posted 9.02am. Is it a glitch in the nzx that it is not showing?

Whereabouts are you seeing them?

[Ggcc]

Whereabouts are you seeing them?
19/02/19 we are waiting for full year results not half year

[mondograss]

The Heartland website says 4:02pm.

[Baa_Baa]

Full year profit $73.6m $0.065cps div https://shareholders.heartland.co.nz/shareholder-resources/announcements

[winner69]

All honky dory

Everything going to plan

https://yourir.info/resources/3c731e29233aab51/announcements/hgh.nzx/339194/3/HGH_Heartland_announces_full_year_profit_of_$73.6_ million.pdf

[percy]

Big increase in the final divie is a very pleasant surprise.

[winner69]

Bloody amazing result ....no, truly amazing really

Well done Jeff and his team

Won’t mention that inclusiveness and diversity really does produce superior results....leave that for another day

[Baa_Baa]

Big increase in the divie is a pleasant surprise.

Fully imputed too :t_up:
DRP market price 30/8, announce 2/9 ... see if SP gets smashed by Trump, get more shares in DRP.

[Beagle]

EPS up from 12.4 cps to 12.9 cps, up just 4%.
Outlook mid point is $78.5m which on 569.3m shares (will be slightly more due to dividend reinvestment scheme effect) gives about 13.8 cps. Probably 13.6-13.7 cps after new shares issued under the DRIP.
$1.60 / 0.136 = forward PE of 11.7.
I'd call this a very average result. I'm holding but will not be confusing sentiment with the real facts as reported or the pervasive sentiment regarding the macro economic outlook. Dividend increase is the best aspect to this result. Shares probably fairly priced in my opinion considering the storm clouds of a global economic slowdown are so clearly evident.

[trader_jackson]

Solid result (EPS up 4% - I don't think it was meant to grow this year at all actually due to increase in shares issued), and fairly solid outlook (EPS likely going up about 5%)... especially given these turbulent times (slowing economy and depressed dairy prices?) and interest rates decreasing...
New structure must be working, as other 'banks' have failed to deliver... Although NTA flat and Price to NTA still a bit elevated...
Although $1.60-70ish is probably about fair value, I'll probably try snatch a bit more up at $1.60 or below, simply because of the high yield, that (importantly) looks fairly sustainable (in these every decreasing yield times)

[iceman]

EPS up from 12.4 cps to 12.9 cps, up 4%. I'd call that a very average result. I'm holding but will not be confusing sentiment with the real facts.

I look at it differently Beagle. As we know, we have recently had a big capital raise and issuing of lots of new shares. Maintaining (slightly increasing) EPS and ROE this quickly tells us the new capital has been put to good work very swiftly, growing most parts of the business and increasing NPAT and dividend.
I don't like the increase in dividend as I believe they should keep that cash, but man I like the 24% growth in the Aussie REL business.
I think this is much better than a "very average result" !

[Beagle]

I am going off memory here but if I recall correctly last year's eps growth was just 2.5%. 4% this year...I suppose if we normalise this as they have in the presentation for one-off restructuring costs it looks a lot more impressive, see page 31 of their presentation http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/339193/305399.pdf, they get to 13.7 cps which is a very solid 10.5% eps growth excluding restricting costs so what you suggest Iceman is fair comment on a normalised eps basis.

The problem with doing that though is if we look at the mid point of the forecast $78.5m and I have now modelled an extra approx. 11m shares to be issued in FY20 under the DRIP we have 78.5 / 580m shares = 13.5 cps for FY20, this is less than FY19 earnings adjusted for one-off restricting costs !. Even if you start buying into the whole weighted average shares on issue thing, eps growth in FY20 will be nothing compared to adjusted eps for FY19.

Suppose its good that if we look at the 2 year average from FY18 of 12.2 cps by FY20 we've moved up to approx. 13.5 cps so no matter how you slice and dice the restructuring costs they're forecast to grow earnings by 10.6% over two years or just over 5% per year on average. Probably better than most of the Australian owned banks and HGH better positioned regarding capital adequacy than them too. So that's all good.

Is a forward PE this early in FY20 of 11.7 really cheap though for where we are in the economic cycle with a possible recession looming (with implied extra loan provisioning and write-off's) ? Looks about fair value to me.

[winner69]

Just as well Heartland don’t do the Oceania thing and highlight Comprehensive Income

Comprehensive Income down from $71m last year to $66m this year ....foreign exchange impacted NZD value of Aussie assets and such things.

[Baa_Baa]

I look at it differently Beagle. As we know, we have recently had a big capital raise and issuing of lots of new shares. Maintaining (slightly increasing) EPS and ROE this quickly tells us the new capital has been put to good work very swiftly, growing most parts of the business and increasing NPAT and dividend.
I don't like the increase in dividend as I believe they should keep that cash, but man I like the 24% growth in the Aussie REL business.
I think this is much better than a "very average result" !

The investment in Aus REL business delivering an impressive contribution to top line receivables, now 3x the NZ REL business, and both growing. The departure of Aus banks from the REL market gifted HGH an opportunity that they appear to be making the most of.

[Beagle]

Is a FY20 forward PE of 11.7 good value ? I really don't know the answer and a lot depends upon whether we go into a recession or not.
Make your own assessment of the merits of other banks but for what its worth off Market Screener the forward FY20 of the Aussie banks I follow is :-
BEN 14.3
BOQ 12.0
ANZ 11.5
NAB 12.3
WBC 12.4
CBA 13.8
Average 12.7.
10720
TA isn't helpful in giving any clear guidance either. Probably just a hold for divvy income of 8.6% gross.

[percy]

I found the result presentation an excellent read.
A year of a lot of changes means HGH are "well positioned" to take advantage of the opportunities in the market place,ie Reverse Equity Loans,Livestock lending and Open 4 products.[And they look to be going for them.]
Capital is been recycled from low margin lending including rural and business,ie very large loans to a greater number of smaller loans.Improves their risk profile too.
As REL and better quality lending has been increasing rapidly, it is not surprising NIM has reduced slighty,although it remains nearly double the major banks.
Pleasing that HGH keep doing what they say they will do.
The increase divie shows directors/managements confidence they will continue to grow the business, and increase rewards for shareholders.

[Beagle]

Market must be looking through the one-off restructuring costs and seeing real eps of 13.7 cps or maybe the 14.4 cps they said they'd earned in the second half of FY19....or is it simply dividend hounds chasing the bigger feed.

[RTM]

I
I don't like the increase in dividend as I believe they should keep that cash, but man I like the 24% growth in the Aussie REL business.
I think this is much better than a "very average result" !

Just back from catching my dinner and must say I am very happy with the overall result and the increased dividend. I'm retired and try not to eat to much of our capital as we try to live off our dividends. I guess your perspective depends on what one has the shares for and perhaps where you are with your life.

[Snow Leopard]

This is a good result.

Slightly baffled that they raised the dividend an entire cent, but just means more shares in the DRiP compounding away to financial freedom.

But the important question of the day is:
Why do hotels always change your towels every day even when you follow the notice and hang them up to reuse them?

[Beagle]

Just back from catching my dinner and must say I am very happy with the overall result and the increased dividend. I'm retired and try not to eat to much of our capital as we try to live off our dividends. I guess your perspective depends on what one has the shares for and perhaps where you are with your life.

The real question of the day is are there any kingfish to be caught at this time of year and if so are you catching them up there ?

[iceman]

This is a good result.

Slightly baffled that they raised the dividend an entire cent, but just means more shares in the DRiP compounding away to financial freedom.


Why do hotels always change your towels every day even when you follow the notice and hang them up to reuse them?

I agree but think Jeff and his team no doubt realise a large proportion of their shareholders are dividend hounds like RTM states above and probably also realise that many that are not so fuzzed about receiving extra divies, will sign up to the DRP, Whil I wouldn´t have increased the divie, I totally understand the rationale for it and fair it is enough.

Beagle your points are all good. Agree HGH is probably reasonably fully priced but most certainly a very good hold with this result.

[fish]

The real question of the day is are there any kingfish to be caught at this time of year and if so are you catching them up there ?

A very good question.
Went out late yesterday.
Flat calm
Full moon rose at 6pm
Fish in the berly trail-lots-whilst catching good snapper,kahwai,trevally we scooped some livies in the net.
One was busted and the second devoured by a 5 kg snapper.
We were the only boat fishing in the bay and you have to wonder why.
The Bay of Islands has its own micro-climate but did have to add a beanie for the trip back

[RTM]

A very good question.
Went out late yesterday.
Flat calm
Full moon rose at 6pm
Fish in the berly trail-lots-whilst catching good snapper,kahwai,trevally we scooped some livies in the net.
One was busted and the second devoured by a 5 kg snapper.
We were the only boat fishing in the bay and you have to wonder why.
The Bay of Islands has its own micro-climate but did have to add a beanie for the trip back

Ssssshhhhhhhhh !
They will all be coming up here.
Soft Bait only, three nice snapper. less than 15 minutes from home.
Great !

[King1212]

Great result. Beauty!....6.5 c per share dividend. All holders are going to move their funds to HGH now..8.5%yield compare many companies if u lucky now with 4% yield

[Joshuatree]

Ssssshhhhhhhhh !
They will all be coming up here.
Soft Bait only, three nice snapper. less than 15 minutes from home.
Great !

So soft baits are made of plastic, you feed the fish this PVC then they eat it and some get caught and some swim away to get caught another day. More plastic then fish in our oceans is not far off, more plasticised snapper as well.Weird.

[RTM]

So soft baits are made of plastic, you feed the fish this PVC then they eat it and some get caught and some swim away to get caught another day. More plastic then fish in our oceans is not far off, more plasticised snapper as well.Weird.

I did hesitate before I replied to Beagle / Fish as it is the Heartland thread. Should have stuck with my initial thought and stayed focussed on the great result.

[horus1]

Good result , steady and good forecast. Bought more yesterday.

[RTM]

eps for first half of year 5.9c.
eps for second half 7.1c (13-5.9)
Seems like good growth...does anyone have the figures for earlier1/2's at hand ?

[RupertBear]

Craigs downgrade to a hold

[RTM]

Craigs downgrade to a hold

Yeah but why RupertBear….?
"Growth in the share price in the past 6 months has meant the company is now trading close to the long term sector average P/E and close to Australian bank peers. Accordingly, we have downgraded our rating from Buy to Hold".
Up 23% since the interim result

More than happy to continue to hold. If I didn't have to many...would buy more on any weakness in SP.

[RupertBear]

Yeah but why RupertBear….?
"Growth in the share price in the past 6 months has meant the company is now trading close to the long term sector average P/E and close to Australian bank peers. Accordingly, we have downgraded our rating from Buy to Hold".
Up 23% since the interim result

More than happy to continue to hold. If I didn't have to many...would buy more on any weakness in SP.

Sorry havnt had time to read the whole report, just the heading, will update when able ;)

[percy]

Sorry havnt had time to read the whole report, just the heading, will update when able ;)

Perhaps you should have read it first.!

[fish]

Sorry havnt had time to read the whole report, just the heading, will update when able ;)

When you read the report have a look to see if the impact of nz imputation credits affects the dividend returns and also growth velocity /potential of the company-have they even been considered?
I am also very skeptical of any broker report as clearly they could easily be biased .
One merit of sharetrader is open free debate .

[RupertBear]

Yes you are probably right Percy was thinking the same thing myself. Just wanted to give people on here the heads up but now I wish i hadnt bothered

[couta1]

Yes you are probably right Percy was thinking the same thing myself. Just wanted to give people on here the heads up but now I wish i hadnt bothered Brokers up and downgrades are about as reliable as tossing a coin, well actually coin tossing is probably more accurate.

[beetills]

Brokers tips make Fortune Tellers look legitimate.

[davflaws]

Yes you are probably right Percy was thinking the same thing myself. Just wanted to give people on here the heads up but now I wish i hadnt bothered

Please keep posting when something occurs to you. That way we all learn.

[couta1]

Please keep posting when something occurs to you. That way we all learn. Yes exactly after all a forum is basically just posting news/exchanging ideas and opinions with or without research.

[winner69]

Seems Beagle and Craig’s on same wavelength - HGH priced at about sector average and a good HOLD

That’s a solid endorsement going forward

[percy]

In the past year HGH paid a final dividend of 5.5 cps,and an interim of 3.5 cps giving a total of 9 cps.
HGH have now increased the final dividend to 6.5 cps and Craigs are projecting a total dividend of 10.5 cps pa,therefore it looks as though the next interim could [if Craigs are right] be 4 cps,making up their total of 10.5cps pa..
Certainly looking better to own the bank, rather than having money in the bank....lol.

[Beagle]

Seems Beagle and Craig’s on same wavelength - HGH priced at about sector average and a good HOLD

That’s a solid endorsement going forward

Lots of other highly experienced investors on here also have the same rating. Its certainly priced slightly lower than the average Australian bank, its eps is growing slightly faster and its better capitalised to meet the proposed new RBNZ capitalisation standard. To coin a slightly overused phrase "well positioned" springs to mind.
Growth rate...12.2 cps in FY17 grown to 12.4 in FY18 and 12.9 in FY19 and a forecast fully diluted for estimated shares issued under the DRIP this year of approx. 13.5 cps indicated average growth in eps of 3.5% per annum. Pretty boring but I suppose boring is good and priced fairly at a foreword PE of about 11.7
Just hope the **** doesn't hit the fan overseas and we end up in a bad recession, because financials are never a good place to hide when that happens.

[Brain]

Another thing to consider is that Heartland has a market cap of 1billion cf Westpac and others of 100billion. Growth should be a lot easier for Heartland. Heartland is a minnow , still in short pants , it can make a very good living from the crumbs that fall off the big boys tables.

[iceman]

Another thing to consider is that Heartland has a market cap of 1billion cf Westpac and others of 100billion. Growth should be a lot easier for Heartland. Heartland is a minnow , still in short pants , it can make a very good living from the crumbs that fall off the big boys tables.

Absolutely correct Brain and that's exactly what they are doing, such as with the Aussie REL where the big boys put it in the too hard basket :)

[winner69]

Good to see the combination of credit policy and proactive provisioning saw the bad debts expense drop from $22.1m to $20.7m ....even though receivables and the like increased.

Helped profit a lot this year ...even though Shareholders Funds took a hit of $19m odd with the adoption of new standards.

[Beagle]

Probably fairer when looking at the growth rate (seeing as they have been through restructuring costs) to look at a five year view, 4 year historic and forecast fully diluted eps of 13.5 cps for FY20. In FY15 they made $48.163m on 469.9m shares = 10.25 cps. Growing eps to 13.5 cps over 5 years to FY20 if achieved represents a total of 31.7% eps growth or just on an average compound annual rate of 5.7% per annum. Good solid and dependable stuff.

[winner69]

Probably fairer when looking at the growth rate (seeing as they have been through restructuring costs) to look at a five year view, 4 year historic and forecast fully diluted eps of 13.5 cps for FY20. In FY15 they made $48.163m on 469.9m shares = 10.25 cps. Growing eps to 13.5 cps over 5 years to FY20 if achieved represents a total of 31.7% eps growth or just on an average compound annual rate of 5.7% per annum. Good solid and dependable stuff.

...and if they increase the divie to 10.5 cents in F20 that’s a CAGR of 7% pa over the same five years

EPS growth 5.7% pa and divie growth of 7.0% pa

Good eh

[percy]

Before any one spends too much time on projections,one should read page 28 of HGH's full year presentation,Full Year 2020 Outlook.
Best sumed up:
"Many of these costs are accelerated or one off and will generate asset growth and income in ensuring years".
As I said in an earlier post,HGH see opportunities, and are going for them.

[Snow Leopard]

For what it is worth, and it is worth a lot :p, is that you can expect a long term average total growth (eps+div) of 8.3% going forward and on that basis current fair value (cum final divvy) is $1.71 and will be at 30-Jun-20 (two divvies paid later) $1.75.

[Leftfield]

For what it is worth, and it is worth a lot :p, is that you can expect a long term average total growth (eps+div) of 8.3% going forward and on that basis current fair value (cum final divvy) is $1.71 and will be at 30-Jun-20 (two divvies paid later) $1.75.

Happy to have topped up a few more last week after the report was released (HGH now at 4% of my portfolio) and happy to have Snow Leopard and Percy's 'seal of approval' on HGH's latest results.

On page 22 under Australian Strategic revue there is mention of a "O4B pilot in Australia" which suggests the Open For Business loan platform is about to be expanded in Australia in FY20. Seems we are 'well positioned.'

[Beagle]

o Increased costs associated with investment in: • Awareness for O4B and reverse mortgages in both Australia and New Zealand. • Capacity and processing volume to meet growing demand and opportunities in core strategic areas. • Finance and Compliance reflecting increased regulatory complexity and heightened and demands.

o Many of these costs are accelerated or one-off and will generate asset growth and income in ensuing years.

o Accordingly, we expect the cost to income ratio increase to 41.9%, before reverting to its current trajectory.

o Heartland expects net profit after tax for the year ending 30 June 2020 to be in the range of $77 million to $80 million.

[winner69]

The last capital raise (rights issue) December 17 was at $1.70 ....Hmmmm

Wonder how much they’ll ask for it will be when the next inevitable cap raise is announced

[percy]

The last capital raise (rights issue) December 17 was at $1.70 ....Hmmmm

Wonder how much they’ll ask for it will be when the next inevitable cap raise is announced

Most probably $2.50.

[iceman]

The AGM now to be held in Christchurch on 12 November. I assume Percy had a quiet word with Jeff ;)

[winner69]

The AGM now to be held in Christchurch on 12 November. I assume Percy had a quiet word with Jeff ;)

Cup day at Addington ...hmmm

[Beagle]

Most probably $2.50.

LOL..good to start the week with some outrageous optimism.

[percy]

Realism.
Page 26 on HGH's annual result presentation,Capital, makes for interesting reading.
I take it any further call on shareholders for more capital is sometime away.
Right.
We know HGH are "going hard" this year for the many opportunities avaliable to them
Therefore, knowing HGH are successful of taking full advantage of any opportunity they are given.we must look forward to this time next year,when they alert the market to their 2021 profit projections.
Then the following interim, will advise growth has been so outstanding HGH will require further capital,and Jeff will upgrade full year's projections.
Then shareholders will shout "Bingo,Full House",and some will all look back and think ,"goodness I could have brought more HGH shares 85 cents less 18 months ago."!!

[Beagle]

My work on the weekend showed they had grown eps over the previous 4 years and forecast over the next year (total 5 years) 31.7%. I looked back at the share price 5 years ago and it has grown in line with earnings growth. As long as we don't get another GFC Mk2 my modelling has them taking another 4 years (sometime in 2023) to get back to the previous high of $2.14. That's fine and I am happy to continue to hold a modest position for what is realistically going to be most likely to be about 5-6% per annum share price appreciation on average, over the years ahead. That and an 8.6% gross divvy is all that's required for me to hold. I'd rather have more realistic expectations and then be pleasantly surprised than the other way around. Time will tell.

[winner69]

In the past Heartland usually rave on (in favourable terms) about their Equity Ratio

No mention this time around

With assets up 10% and shareholder equity a fraction up on last year the Equity Ratio must be quite a bit lower

Heartland has become more leveraged

[RTM]

My work on the weekend showed they had grown eps over the previous 4 years and forecast over the next year (total 5 years) 31.7%. I looked back at the share price 5 years ago and it has grown in line with earnings growth. As long as we don't get another GFC Mk2 my modelling has them taking another 4 years (sometime in 2023) to get back to the previous high of $2.14. That's fine and I am happy to continue to hold a modest position for what is realistically going to be most likely to be about 5-6% per annum share price appreciation on average, over the years ahead. That and an 8.6% gross divvy is all that's required for me to hold. I'd rather have more realistic expectations and then be pleasantly surprised than the other way around. Time will tell.

Wow Beagle.....you have described my perfect investment. Gives me some comfort for my oversized holding...10% of my portfolio.
Thanks !

[Beagle]

Wow Beagle.....you have described my perfect investment. Gives me some comfort for my oversized holding...10% of my portfolio.
Thanks !

LOL, you're welcome. There is a strong element of predictability in terms of earnings growth for sure. Not many companies have the ability to accurately predict next years earnings at the time of the announcement of last years ! I am a little surprised you're at 10% given your well known, (and liked by this hound) 4-6% normal maximum for any one stock. Care to expand a bit on why such an outsized, for you, holding ?

[percy]

The AGM now to be held in Christchurch on 12 November. I assume Percy had a quiet word with Jeff ;)

Offcourse.!!!.
Just hopeful of a 4pm start.....

[bull....]

net interest margin declined not so good but not dis similar to other banking out fits at the moment

[winner69]

Offcourse.!!!.
Just hopeful of a 4pm start.....

NZ Trotting Cup starts about then .....a 4pm start would take away the excuse for going down for Cup Day

A 9.30 start maybe ...but AGMs are really boring anyway....only excitement over the years has been when that shareholder told Ricketts he and most of his Board were old fuddy duddies.

At least they are well on the way to fixing that

[percy]

NZ Trotting Cup starts about then .....a 4pm start would take away the excuse for going down for Cup Day

A 9.30 start maybe ...but AGMs are really boring anyway....only excitement over the years has been when that shareholder told Ricketts he and most of his Board were old fuddy duddies.

At least they are well on the way to fixing that
I have never ever been bored at any HGH presentation,agm,or special meeting.
Always learn a great deal.
Comments such as "fuddy duddies" belittle the excellent people who have directed HGH so well.Not called for.I find the people that make those sort of comments stupid.
The best one was at Ashburton agm years ago, when one senior citizen went on about DNA.Thankfully the Chairman advised her she was at the wrong meeting..lol.

[winner69]

I have never ever been bored at any HGH presentation,agm,or special meeting.
Always learn a great deal.
Comments such as "fuddy duddies" belittle the excellent people who have directed HGH so well.Not called for.I find the people that make those sort of comments stupid.
The best one was at Ashburton agm years ago, when one senior citizen went on about DNA.Thankfully the Chairman advised her she was at the wrong meeting..lol.

Wasn't me that said that ...and whether the people who say that are stupid I guess is a matter of opinion .... ...but boy was Ricketts taken aback with that comment

Maybe it did prompt the Board and Management to improve diversity and inclusivity .....such action sure has lead to great results eh

[winner69]

From the results announcement this bit shows that thigs are changing in Heartland

Increase in gender diversity among people in key leadership roles, currently 62.5% female and 37.5% male

[Fred_Rubble]

Analysts estimate Heartland will need to raise $100m of capital by 2022 (https://www.interest.co.nz/banking/101264/ubs-analysts-highlight-wide-range-returns-equity-across-heartland-group-holdings)

Paywall on Interest

https://www.interest.co.nz/banking/101264/ubs-analysts-highlight-wide-range-returns-equity-across-heartland-group-holdings

[winner69]

And Mahi Tika, Mahi Tahi, Mahi Toa and Mahi Tipu are awesome values to have.

Seems to be working for them ....well done embracing inclusiveness

[RTM]

LOL, you're welcome. There is a strong element of predictability in terms of earnings growth for sure. Not many companies have the ability to accurately predict next years earnings at the time of the announcement of last years ! I am a little surprised you're at 10% given your well known, (and liked by this hound) 4-6% normal maximum for any one stock. Care to expand a bit on why such an outsized, for you, holding ?

Yep...that's a fair question...although I think I've always said that HGH was an outlier.

I've had some from their start....added a few more on any dips....was in the DRP for a while and then the dam price just kept going up.... Overtime I became confident that they would perform. Bought a few more when someone was talking them down. Never sold any (seldom do). And I "inadvertently" ended up where I am. I kick myself looking back for not re-balancing a bit when they hit greater than $2.10. But I couldn't figure out at the time what to do with the funds that I would free up that would be better than Heartland, everything was quite high then.

For the record my current portfolio:
16 stocks < 2%
20 stocks 2- 5.7%
1 stocks 9.8 % today.

I have been trying to bring some of the smaller ones up towards the 5% mark.
I am also trying to buy a few more in OZ. Topped up my Sydney Airport shares end of last year :). And relative recently bought Boral:mellow: and Woodside Petroleum:(

So I think I'm practicing what I preach pretty well. And nothing is telling me yet that it is the wrong approach.

Wet afternoon up North. Lawns done this morning. All good in the North
Cheers
RTM
PS Thanks for the prompt to check the buckets they are in. Always a worthwhile exercise.

[davflaws]

And Mahi Tika, Mahi Tahi, Mahi Toa and Mahi Tipu are awesome values to have.

Seems to be working for them ....well done embracing inclusiveness
And (on behalf of us owners) Kia Tupato!

[Beagle]

Thanks for sharing RTM. FWIW I'm leaving the overseas stuff to Barramundi and Marlin with the aim to get much greater diversification, spend less time on share analysis and more time enjoying my PIE dividends and chasing kingfish...the ones with tails :), although I have Kingfish shares too. Topped up a little on HGH, now 4% of my portfolio, happy to let the DRIP take it higher over time.

[percy]

HGH will be trading ex divie tomorrow.
Divie will be paid on Friday 6th September.

[King1212]

Lovely..6.5c...hopefully....the sp drift down so we can get more shares on drp

[percy]

Why do I think HGH is up 2.5 cents when Good Returns say;
"HGH fell 2.4% or 4 cents to $1.61 after shedding rights to a 6.5 cent dividend,"..............????????????

[Baa_Baa]

Why do I think HGH is up 2.5 cents when Good Returns say;
"HGH fell 2.4% or 4 cents to $1.61 after shedding rights to a 6.5 cent dividend,"..............????????????

You can both be right?

[percy]

You can both be right?

That's what I thought too..

[janner]

You can both be right?

Yes you can both be correct.
Those that took the money and ran are now holding the same amount of shares on a lose..
Those that took the DRP are holding " more " shares at a lesser lose.
Risk and reward.. All part of the game.

[King1212]

Looking good for the DRP....the sp is down....thanks for Trump's tweet

[iceman]

An interesting article in the Herald today, behind the paywall, about the big banks muscling in on Heartlands turf in the "business relationships" sector. SOunds like Heartland has accepted they can not compete, much like they did with mortgages some years ago and now focus instead on "intermediated business", i.e. selling through brokers like they do with the car loans.
Shows once again that Heartland has to keep permanently agile and quick off the mark in response to the big banks and come up with new solutions.

[percy]

An interesting article in the Herald today, behind the paywall, about the big banks muscling in on Heartlands turf in the "business relationships" sector. SOunds like Heartland has accepted they can not compete, much like they did with mortgages some years ago and now focus instead on "intermediated business", i.e. selling through brokers like they do with the car loans.
Shows once again that Heartland has to keep permanently agile and quick off the mark in response to the big banks and come up with new solutions.

This has been working in HGH's favour for sometime now.HGH getting out of large "business relationship" lending, and replacing them with a lot of smaller loans.This works two ways for HGH,reduces risks, and increases margins.HGH "Open 4 business" is growing very fast too.
HGH always avoid going into the big banks' sectors.We have seen them reduce large rural mortgages lending,and recycling the funds into shorter term, and more profitable livestock lending.

[winner69]

This has been working in HGH's favour for sometime now.HGH getting out of large "business relationship" lending, and replacing them with a lot of smaller loans.This works two ways for HGH,reduces risks, and increases margins.HGH "Open 4 business" is growing very fast too.
HGH always avoid going into the big banks' sectors.We have seen them reduce large rural mortgages lending,and recycling the funds into shorter term, and more profitable livestock lending.

Quick response percy ..beat me too it

Yep, gets them away from the temptation in building relationships with the likes of Christina Domecq-directed firms ...and they were fortunate with their relationship with Sea Dragon eh

[iceman]

Absolutely right Percy. Been going on for 18 months or so and Heartland has reacted positively. Good that the loans being written instead are smaller and more widely spread, $100k or so on average, but using intermediaries makes them a bit more expensive to write. But on last numbers we are still with a very healthy NIM.

[percy]

Quick response percy ..beat me too it

Yep, gets them away from the temptation in building relationships with the likes of Christina Domecq-directed firms ...and they were fortunate with their relationship with Sea Dragon eh

Sea Dragon.I note Mark Stewart's company Ziwi Peak, won some big export award recently.At least that business is going gangbusters for him.
Now try following this.
SEA's market cap today is what PAZ's was a few years ago,and
PAZ's market cap today is what SEA's was a few years ago.................................lol.

[percy]

From this week's taking stock on www.chrislee.co.nz
"HGH shareholders will be quietly enjoying growing profits,growing dividends,and growing confidence in the direction the company is committing to."

[janner]

From this week's taking stock on www.chrislee.co.nz
"HGH shareholders will be quietly enjoying growing profits,growing dividends,and growing confidence in the direction the company is committing to."

Amen.. = So be it.. I believe..

[ziggy415]

Amen.. = So be it.. I believe..
Can they/ do they short heartland....just noticed some big buy/sell orders last few days .late in the day...seems to keep price in the$ 1.58 range.....I see last 5 days used for drp average but would they manipulate that......will sink a few bourbons while I wait for reply...no hurry lol

[Beagle]

Pretty good month for HGH. Doesn't feel like it but I checked and they're down 3.5% for the month, (up 0.5% counting the 6.5 cent fully imputed dividend they shed).
This compares to the NZX50 down 3% for the month and according to CNBC this morning the financials as a sector in the US down 12% in August.
Moral of the story, when it feels like you're on a road to nowhere check the landscape around you to see how you're really travelling relative to other alternatives.
Nothing wrong with 8.8% fully imputed gross yield especially as it grows slowly over the years ahead.

[Snow Leopard]

https://www.nzx.com/announcements/340177

"Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) advises that the strike price for shares to be issued under its Dividend Reinvestment Plan (DRP) in lieu of the cash dividend payable on 6 September 2019 is $1.54446002 per share."

I presume that like me you are all disappointed with that 2 millionths of a cent at the end and were hoping for at least 5.

[percy]

Think it will affect the big end of town the most.

[justakiwi]

Don’t want to de-rail this thread (I can move it elsewhere if you want) but out of curiosity, do those of you holding HGH, bank with them?

[BlackPeter]

Don’t want to de-rail this thread (I can move it elsewhere if you want) but out of curiosity, do those of you holding HGH, bank with them?

Quite relevant question for this thread, I would think.

Personally - I do hold their shares, but would not really be in the target group for their major products like REL, business credits or even Harmony - i.e. no, I do not bank with them.

[Brain]

Don’t want to de-rail this thread (I can move it elsewhere if you want) but out of curiosity, do those of you holding HGH, bank with them?

As BP writes it is relevant. I hold the shares and bank with them to the extent of having a few term deposits with them but no other general banking. I generally find them to be bloody useless and as a result will take my term deposits else where. The final straw was when Heartland took a month longer than the other banks to send out tax certificates for the term deposits. I have found communication with them difficult to say the least and the website for internet banking is totally hopeless.

Having said that I will not throw the baby out with the bath water and will continue to own the shares - thanks to Percy for alerting a number of us to the share. I have made some very good money from the shares since buying in at 80c. As I have said before these guys are just beginning and there is room for improvement in a lot of the things they do.

[RTM]

Don’t want to de-rail this thread (I can move it elsewhere if you want) but out of curiosity, do those of you holding HGH, bank with them?

Yes...I have some money with them...their interest rates on deposits are sometimes attractive.
For the same reason I have a KiwiBank account as well.

Not a cheque account or credit card. Just somewhere to park $'s to get some interest.

[blockhead]

Yes Blocky has a Term Deposit with them and a couple of transaction a/c's but find the internet banking and the app to be too difficult to use and too limited. Perhaps it is not fair to compare with BNZ and Westpac systems which are much more developed and user friendly, their systems probably cost a hell of a lot more as well.

[iceman]

Quite relevant question for this thread, I would think.

Personally - I do hold their shares, but would not really be in the target group for their major products like REL, business credits or even Harmony - i.e. no, I do not bank with them.

Exactly the same situation here. With them being 18.5% of my NZX portfolio, I feel that's a sufficient exposure to them

[winner69]

The final straw was when Heartland took a month longer than the other banks to send out tax certificates for the term deposits. I have found communication with them difficult to say the least and the website for internet banking is totally hopeless.



Yep those tax certificates being so late was a disgrace. ANZ had them out in days.

At least it was a better effort than the year before when they owned up to miscalculating interest

[suse]

I have an account where I am hiding money from myself :) I have got used to the app now but really have no reason to use it unless I want to move money in or out, which I am trying not to do. Interest rates are obviously much better than ANZ, my main banker (or should that start with a W)

[Marilyn Munroe]

... the website for internet banking is totally hopeless.


I agree the online banking site is totally hopeless.

No I don't bank with them or hold shares. I assist an elderly relative who banks there.

Boop boop de do
Marilyn

[waikare]

As a shareholder I also have an account with HGH, but not my main account. the only comment I would like to make, their website could be a little bit more user friendly, for us Gold card holders

[justakiwi]

I recently opened a couple of direct call accounts with them. At the time they were paying 2.15% which beat the other banks, but this has dropped to 1.90% over the past few weeks, so probably haven’t really achieved anything by switching, given my paltry sums of money ;)

Their website and app are adequate but only just. Incredibly uninspiring interfaces. My main annoyance is that the app doesn’t (yet) support account nicknames, while internet banking site does. Makes no sense to offer that option in one platform but not the other, but hey, no big deal I guess.

[King1212]

Percy to take notes please...so next board meeting can be discussed...😃

[janner]

Percy to take notes please...so next board meeting can be discussed...��

Percy is always taking notes.. And more to the point acting upon them when needed..

I am sure percy appreciates any feed back.

[BlackPeter]

Percy is always taking notes.. And more to the point acting upon them when needed..

I am sure percy appreciates any feed back.

...as long as it is not about TRA :p - but I guess everybody might have a blind spot ;);

[percy]

...as long as it is not about TRA :p - but I guess everybody might have a blind spot ;);

Another brain dead comment from you.
Becoming a habit.
I, and others expect better from you.
At this year's agm I will be speaking with Chris Flood, about posters concerns of HGH's site,rather than standing up and making a fool of myself, asking long winded questions no one could understand.

[beetills]

Article behind PAYWALL in the NBR reads
'HEARTLAND QUIETLY ADMITS CAPITAL MISHAP'.
anyone able to expand.Thanks

[winner69]

Article behind PAYWALL in the NBR reads
'HEARTLAND QUIETLY ADMITS CAPITAL MISHAP'.
anyone able to expand.Thanks

Good that somebody actually reads these things ...the answer in there somewhere

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/341427/308226.pdf

Heartland not so perfect after all - they’ve engaged an external consultant to undertake a broader review of its calculation of its regulatory capital and liquidity ratios.

[Beagle]

Come in Snoopy.

[Snow Leopard]

Good that somebody actually reads these things ...the answer in there somewhere

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/341427/308226.pdf

Heartland not so perfect after all - they’ve engaged an external consultant to undertake a broader review of its calculation of its regulatory capital and liquidity ratios.

read page 14 you lazy people :p

[winner69]

read page 14 you lazy people :p

Almost as bad as those dastardly Aussie banks in calculating some ratios.