HGH - Heartland Group Holdings

[Jenny Ruth]

Thanks, Iceman. I've just posted a link to my story on this thread

[bull....]

i find there forecasts for challenger quite optimistic in an environment of nim contraction in AUS

[bull....]

market may be skepitical till they get runs on the board which will take time

[bull....]

4cps my guess for div's based on capital requirements and npat forecast

[Balance]

135m shares placed instead of the 105m for the institutional pool - so additional 30m shares looking for a quick profit?

Looks to me like sp will be heading towards $1.01 or $1.02 shortly?

[Entrep]

135m shares placed instead of the 105m for the institutional pool - so additional 30m shares looking for a quick profit?

Looks to me like sp will be heading towards $1.01 or $1.02 shortly?

What's another $3 million risk-free profit between friends.

[Joshuatree]

S/P low of $1.05, $1.09 ATM .
I will be taking up my allotment.

[ronaldson]

Some sanity starting to prevail now. Buyers at $1.13 and Sellers $1.14. Easy trading profit today if you were in the Buy queue early enough.

[bull....]

135m shares placed instead of the 105m for the institutional pool - so additional 30m shares looking for a quick profit?

Looks to me like sp will be heading towards $1.01 or $1.02 shortly?

wouldnt surprise me in time. nice profits for insto's overweight there stock limit on this due to participation. most retail people , even ones who brought recently mostly underwater

[Snow Leopard]

135m shares placed instead of the 105m for the institutional pool - so additional 30m shares looking for a quick profit?

Looks to me like sp will be heading towards $1.01 or $1.02 shortly?

Obviously the wording has confused a few people :mellow:

$131M consists of:

$105M for the placement;
$26M of the $105M of the pro-rata Entitlement Offer, being that bit of said offer that is applicable to the institutionals.

[Bjauck]

What's another $3 million risk-free profit between friends.
At the expense of existing retail shareholders.

[ronaldson]

Final price at market close today is $1.10 which is somewhat disappointing. Perhaps indicative of a lack of trust, and that post settlement outcomes are anticipated to be less rosy than predicted?

A bit of water to flow under the bridge before Challenger is safely acquired and the transaction events intended are finalised, so we can wait and see what the market thinks during the rest of the month and early in May.

[LaserEyeKiwi]

Final price at market close today is $1.10 which is somewhat disappointing. Perhaps indicative of a lack of trust, and that post settlement outcomes are anticipated to be less rosy than predicted?

A bit of water to flow under the bridge before Challenger is safely acquired and the transaction events intended are finalised, so we can wait and see what the market thinks during the rest of the month and early in May.

Well one has to question how many buyers there are at present considering institutional investors just bought plenty, and existing retail investors will be buying at $1.00 through the placement.

[nztx]

Did someone say this was a Two Buck share a while back ? ;)

The Board seem to have an uncanny knack of putting their foot in any meaningful
term upwards in the SP towards where many self respecting banks are usually priced :)

[bull....]

Did someone say this was a Two Buck share a while back ? ;)

The Board seem to have an uncanny knack of putting their foot in any meaningful
term upwards in the SP towards where many self respecting banks are usually priced :)

hasnt been that great of an investment for cap gain , was good as a income stock but that appears to have dis-appeared as well now unless challenger turns into a roaring success. but that will take time. in the mean time the cut in div payout to under 50% of npat implies this may not be a income stock again for a while.

[Bjauck]

hasnt been that great of an investment for cap gain , was good as a income stock but that appears to have dis-appeared as well now unless challenger turns into a roaring success. but that will take time. in the mean time the cut in div payout to under 50% of npat implies this may not be a income stock again for a while.Putting on my cynical hat as I seem to do these days, A reverse pyramid investment. The institutional placement had already eroded our investment but, if past results have shown, we are being asked to add yet more capital for the possibility/probability to expand our capital losses, and to get a reduced dividend. I must learn a new mantra:Australia will be different for this NZ company.

[Ricky-bobby]

Sell side building… be interesting to see where it gets to?..

[percy]

Sell side building… be interesting to see where it gets to?..

Buyers
Buy Quantity
Prices
4 113,262 $1.100
6 19,731 $1.090
12 16,088 $1.080
7 32,161 $1.070
5 100,932 $1.060
14 255,384 $1.050
2 7,020 $1.040
3 12,050 $1.020
5 13,222 $1.010
12 222,110 $1.000
70 791,960
Prices
Sell Quantity
Sellers
$1.110 59,627 7
$1.120 25,000 1
$1.130 40,014 3
$1.140 32,427 3
$1.150 70,000 3
$1.160 15,000 1
$1.190 850 1
$1.200 58,908 2
$1.210 826 1
$1.220 91 1
302,743 23

[SCOTTY]

Sellers possibly selling to cash up to buy into the rights. ie sell @$1.10/buy back at $1.00 = 10% bonus on existing holding

[Rawz]

Sellers possibly selling to cash up to buy into the rights. ie sell @$1.10/buy back at $1.00 = 10% bonus on existing holding

also possibly some sellers will take up their rights and then instantly sell to make 10% quick gain.

so selling pressure around for awhile is how i see it.

[Balance]

Sellers possibly selling to cash up to buy into the rights. ie sell @$1.10/buy back at $1.00 = 10% bonus on existing holding

Sigh - if only the sp has not dropped 12c in the first place to $1.10?

[mike2020]

Sigh - if only the sp has not dropped 12c in the first place to $1.10?

So last raise 1.80ish and it NEVER WENT UNDER THAT :mellow:

[Jenny Ruth]

Hi all. My latest column published on my Substack, Just the Business, looks at Heartland's 2028 financial targets. The headline is: Heartland says its targets aren't much of a stretch; analysts are sceptical
and you can find it here: https://substack.com/@justthebusinessjennyruth

[Rawz]

Hi all. My latest column published on my Substack, Just the Business, looks at Heartland's 2028 financial targets. The headline is: Heartland says its targets aren't much of a stretch; analysts are sceptical
and you can find it here: https://substack.com/@justthebusinessjennyruth

Jenny i appreciate your work but you are not really adding anything to sharetrader. If anything you are taking the conversation away from here?

Also understand its how you pay your bills. Can't you post some of your thoughts here?

[percy]

HGH projections.From HGH presentation.
"Projections based on growth in Reverse Mortgages, Livestock Finance and Home Loans5 only.5 Home Loans acquired through the acquisition of Challenger Bank and is assumed to be in run-off. "
Therefore HGH have not counted on any motor vehicle or asset financing profits in their Australian projections.

Also;Lenders such as HGH,TRA, etc made a lot of loans when interest rates were very loan.
I watched a Turners presentation where their finance man Aaron,Saunders said it would take another 18 months to 2 years for these loans to be recycled.ie paid back in full and the money relent at new rates.
HGH mentions this in passing,but again I do not think the analysts have taken this into account.

I therefore think HGH will exceed their [in my opinion modest] projections.

I wonder whether Forbar's target price of $1.25 or Craigs' of $1.51 is correct.
I am happy with either,as I will collect the fully imputated divie in the meantime.

[iceman]

Jenny i appreciate your work but you are not really adding anything to sharetrader. If anything you are taking the conversation away from here?

Also understand its how you pay your bills. Can't you post some of your thoughts here?

I don't see any problems with her noting here in a short post that she has written another piece on HGH. I know of several ST members that subscribe to her newsletters and her views could be discussed on here if we want to.

[Jenny Ruth]

You don't think telling people what analysts think - and what I think - is adding anything? I don't agree

[Entrep]

I don't see any problems with her noting here in a short post that she has written another piece on HGH. I know of several ST members that subscribe to her newsletters and her views could be discussed on here if we want to.

I agree with what the other person said. A short summary of what it says would be helpful. Otherwise no one knows what is being discussed.

[Rawz]

You don't think telling people what analysts think - and what I think - is adding anything? I don't agree

I don't know what you think as you don't post it here?

[winner69]

I don't know what you think as you don't post it here?

Not much different to me posting a link to a paywalled article in say BusinessDesk is it mate

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

Read between the lines and you’d say Jenny thinks target are doable.

You could always give Jenny a few Bob and read the whole thing …it’s actually very good piece

[Rawz]

Not much different to me posting a link to a paywalled article in say BusinessDesk is it mate

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

Read between the lines and you’d say Jenny thinks target are doable.

You could always give Jenny a few Bob and read the whole thing …it’s actually very good piece

Bit different as you are not the author. But I know what you mean mate.

Hope I don't have to pay you for those cool charts and data you share in the future, same applies to the other guru posters here in this cool community :)

Wish Jenny all the best, not trying to be mean or anything like that. Its tough gig for NZs journalists right now, I certainly understand that.

[100101]

Thanks for the heads up to sell at $1.1 to buy at $1.
I guess most will have seen simply wall streets item
Consensus EPS estimates fall by 11%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated.


2024 revenue forecast increased from NZ$291.4m to NZ$294.9m.
EPS estimate fell from NZ$0.132 to NZ$0.118 per share.
Net income forecast to grow 24% next year vs 1.6% decline forecast for Banks industry in New Zealand.
Consensus price target down from NZ$1.48 to NZ$1.43.
Share price fell 7.6% to NZ$1.10 over the past week.

[ziggy415]

[QUOTE=winner69;1047927]Not much different to me posting a link to a paywalled article in say BusinessDesk is it mate

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

I've got a stockco loan but I cant pay it back but your happy for me to sell some cows on this thread or perhaps you want to buy my tractor or advertise the missus looking for a new home....thin end of the wedge....soon we,ll be inundated with advertisers...hell sailor rob might sell a boat or two

[whatsup]

[QUOTE=winner69;1047927]Not much different to me posting a link to a paywalled article in say BusinessDesk is it mate

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

I've got a stockco loan but I cant pay it back but your happy for me to sell some cows on this thread or perhaps you want to buy my tractor or advertise the missus looking for a new home....thin end of the wedge....soon we,ll be inundated with advertisers...hell sailor rob might sell a boat or two

z415, townies just dont get it, agreed, back bone of the country in a tough enviroment, Buy retail, sell wholesale and pay cartage both ways !!!!

[Ferg]

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

Read between the lines and you’d say Jenny thinks target are doable.

Interesting.....I interpreted the headline such that analysts thought the targets were a stretch, in other words they would struggle to reach their targets.

nxtz obviously loves the cryptic so I would be curious to see how he reads between the lines on that headline....

[Bob50]

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “

I thought this was a negative headline. However the analysts are sceptical of Heartland reaching its $200 million dollar profit- instead predicting they will only increase profits to more like the low $170 million’s.
i see this as positive- both parties predicting significant improvement from current levels.

Thanks Jenny I appreciate your input.

[Snoopy]

Interesting.....I interpreted the headline such that analysts thought the targets were a stretch, in other words they would struggle to reach their targets.

nxtz obviously loves the cryptic so I would be curious to see how he reads between the lines on that headline....


There is a lot of speculation here and in that other place, about the 'risks' Heartland are taking by expanding into Australia via Challenger Bank and Stockco. This seems to be coming mostly from non-shareholders who are overlaying historical tales of doom from other companies who have tried and failed to established themselves across the ditch, while conveniently ignoring the tales of those NZ companies that have made it 'over there'.

While I acknowledge that all change involves risk, I feel Heartland have been treading very carefully down their expansion path in Australia. In Reverse Mortgages, Heartland are no longer 'the new kid on the block'. They dominate the Australian market for unlocking chunks of capital from home equity, a market that the big banks have deliberately and purposefully shied away from. This isn't because it is a market not worth pursuing. It is because there are legal and financial implications that require a specialist advice team which is above the pay grade of the big bank branch staff. Heartland have ensured they have the back office support just right for this Reverse Mortgage product. The main competition in Australia is from government. But that competition is really tangential, as the Australian government is only offering income supplementation in their home equity release packages - not the big lump sums that Heartland can offer.

Unlike other 'new markets', the demand for the reverse mortgage product is not in question. Heartland are currently experiencing growing demand for RM in Australia in what is, for a niche market, nevertheless a large business landscape for a relatively small cap bank like Heartland. The Challenger Bank acquisition is all about controlling costs for a business that already exists. And all the pre-banking licence acquisition talk I have heard is that both the level of deposit taking and interest rates being paid are looking very promising in the quest to replace higher cost wholesale funding for the Australian arm of Heartland. I am less sure about the rebranding of 'Challenger' to 'Heartland Bank Australia.' If the Challenger brand in Australia has become toxic then it might be understandable. But this is an area where I have no knowledge. If it were me I would have saved the money on Challenger rebranding, and kept the Aussies happy doing business with their own known quantity 'local' bank.

Stockco, the rural fiance lender, have got themselves nicely embedded with Elders who are Australia's largest general rural retailer, filling much the same role that PGG Wrightson does in New Zealand. We can look at how PGW's own embedded 'GoLivestock' rural funding business is going as a clue as to how Stockco might perform. It is fair to say that while 'GoLivestock' is not spectacularly profitable in its own right, its role in keeping other parts of the PGW rural business empire's wheels turning is very significant. A genuine rural funder may actually benefit from tougher rural times, as conventional banks pull back on their farm lending, and the likes of Stockco become a 'funder of last resort'. That sounds risky. But businesses like Elders know their customers in a way the big banks do not these days. And if you support a farmer in tough times, you may find that your rural business lending with them blossoms in easier times. Some say that Heartland overpaid for Stockco. I can't really comment on that, except to say that when times are tough down on the farm, some of the earnings multiples for rurally based businesses do look eye watering.

In summary, what Heartland are doing in Australia is a 'cost out' exercise, for a successful business model that is already up and running. IOW the front end operational model already has the 'operating tick'. Sure it involves a capital injection up front to get financial critical mass. And yes, maybe Heartland should have timed their capital raising a little earlier (although there would have been risks in doing that as well, because the size of the capital raise required was not clear at that time). I am regarding the current capital raising as a 'vote' on the Australian business plan. Those shareholders who 'do not believe' should have already sold out. Those who 'believe' should fully back the cash issue and buy as many extra shares as they can for that 'rock bottom buck' price offer. Those non-shareholders on the sidelines should stop the silly whispering whimsical tales of doom and educate themselves as to what is really going on here.

SNOOPY

discl: enthusiastic HGH and PGW shareholder

[winner69]

Good overview there Snoops

Shouldn’t forget that what drove the NZ business years ago was when they got a banking licence and became Heartland Bank. Back then they even admitted it essentially was a marketing ploy as well as the means to be able to take more deposits

The new Heartland Bank is just that …history repeating …bank in their name and marketing as such to get more money from the public

[Snoopy]

Good overview there Snoops

Shouldn’t forget that what drove the NZ business years ago was when they got a banking licence and became Heartland Bank. Back then they even admitted it essentially was a marketing ploy as well as the means to be able to take more deposits

The new Heartland Bank is just that …history repeating …bank in their name and marketing as such to get more money from the public.


Yes, but with one slight twist in the tail. When the acquisition of Challenger has all the boxes ticked, Heartland will actually be an operational bank in Australia, unlike in New Zealand where they operate on a day to day basis under Westpac's banking licence.

SNOOPY

[Bjauck]

Not much different to me posting a link to a paywalled article in say BusinessDesk is it mate

Headline said “Heartland says its targets aren't much of a stretch; analysts are sceptical “ says it all

Read between the lines and you’d say Jenny thinks target are doable.

You could always give Jenny a few Bob and read the whole thing …it’s actually very good piece If BusinessDesk themselves posted a link to their article it would be a free advert. If Heartland posted a link to their term deposit rates and applications it would be a free advert.

[Grimy]

I also think that is a good overview of Heartland going into Oz Snoopy-thanks.
I am a holder and have applied for my entitlement, plus the extra amount allowed. Not big money in my case.
I am always a bit nervous of Australian ambitions of NZ companies, but they do seem to be doing okay.
As Snoopy says, if you don't like the direction they are going, you should have been out by now.
At present I am a happy enough holder.

[Balance]

The real price action starts today with the 131m new shares being available for institutions to sell if they so choose.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/429578/416756.pdf

Remember that this CR is non-renounceable for retail shareholders so any shareholder not taking up their entitlement will receive zero value for being diluted.

So dividend investors are going to have to sell existing shares to take up their entitlements.

Certainly not expecting any 'informed' retail investors to be buying any shares on market and they only have this week to take up their entitlements.

Sp to hit $1.06 today?

[ziggy415]

I also think that is a good overview of Heartland going into Oz Snoopy-thanks.
I am a holder and have applied for my entitlement, plus the extra amount allowed. Not big money in my case.
I am always a bit nervous of Australian ambitions of NZ companies, but they do seem to be doing okay.
As Snoopy says, if you don't like the direction they are going, you should have been out by now.
At present I am a happy enough holder.


Who or what is Alex corporation and what is this for heartland

[LaserEyeKiwi]

The real price action starts today with the 131m new shares being available for institutions to sell if they so choose.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/429578/416756.pdf

Remember that this CR is non-renounceable for retail shareholders so any shareholder not taking up their entitlement will receive zero value for being diluted.

So dividend investors are going to have to sell existing shares to take up their entitlements.

Certainly not expecting any 'informed' retail investors to be buying any shares on market and they only have this week to take up their entitlements.

Sp to hit $1.06 today?

”So dividend investors are going to have to sell existing shares to take up their entitlements.”

???

I don’t think that’s true…?

[Ggcc]

”So dividend investors are going to have to sell existing shares to take up their entitlements.”

???

I don’t think that’s true…?

I think balance is correct about the share price dropping. I will buy more under $1 as this is on the way lower. I am happy to buy some more for that price and patiently waiting. I have bought my allotment at $1

[Rawz]

I think W69 said if it goes under $1.10 it will go under $1

Hope so. $1 would be too good to be true.

[850man]

I've also bought my allotment and will buy more if it goes below $1. I'm so underwater on this and others in my portfolio, hoping the tide comes in some time in my lifetime.

[Balance]

I've also bought my allotment and will buy more if it goes below $1. I'm so underwater on this and others in my portfolio, hoping the tide comes in some time in my lifetime.

It will turn - just needs interest rates to drop to give HGH its first share price stabilisation to break the downtrend.

Remember : ‘Patience when investing is a bitter time but the reward is sweet.’

[ronaldson]

Market is always interesting. Only 7.5k at $1.09 at the 5.00pm match pricing close, then over 2m at $1.10 shortly afterwards.

Quite a volume transacting as folk position themselves for the 22 April closing date to take up retail entitlements. Might be prudent to finalise any intention to do so by Friday this week as you never know what can get in the way at the last minute.

[LaserEyeKiwi]

This is an amusing substantial holder disclosure notice:

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/429609/416791.pdf

“ceasing to be a substantial holder” (5%+) but the reported number of held shares increased since last disclosure.

(but of course the share count had increased proportionally more so, so percentage held is lower)

[silu]

I took up my allotment but I'm more miffed at the fact that my bank (Kiwibank) charged me $5 for a new Direct Debit authority when Linkmarket Services took the money out.

[Mr Slothbear]

I took up my allotment but I'm more miffed at the fact that my bank (Kiwibank) charged me $5 for a new Direct Debit authority when Linkmarket Services took the money out.

maybe account type?

i didn’t have this issue with it taken through kiwibank account

[Cabinet]

maybe account type?

i didn’t have this issue with it taken through kiwibank account

I did not pay either, but I have paid in the past.

[Snoopy]

I took up my allotment but I'm more miffed at the fact that my bank (Kiwibank) charged me $5 for a new Direct Debit authority when Linkmarket Services took the money out.


I will be joining you today, putting a few shekels in the Heartland kitty, as we 'get one back on the Aussies' by taking over one of their banks. I am actually feeling surprisingly good about it. It is something to do with the share price discounting down to a buck, I think, and the realisation that I am now underwater with my investment in Heartland. So rather than bolstering my investment , it feels more like giving to a charity to help out the poor - in this case me!

I am also feeling a bit of nostalgia, thinking back to the day that when you applied for shares in a cash issue, you actually got a shiny new share certificate in the mail. These days, you just log into your share registry account and see a whole lot of numbers, with one of the entries showing an uptick in shares held, being representative of the cash issue you have just supported. Nice, but it just isn't the same :(.

So I got to thinking. With Jeff having announced his retirement, and this cash issue act being the final piece in the Aussie expansion project, I think we shareholders that are supporting this cash issue deserve a badge. Nothing too flashy mind you, Just something we could pin to the lapel of our jacket. The face of the badge would contain a simple slogan:

" 'On ya Jeff"

Short for: "Good on you Jeff". It would be a fitting send off for the man who stewarded through the process of combining the rag tag of finance companies, building societies and money clubs, into the Heartland bank we know today. And then as we shareholders walked around the town we could give each other a nod and a wink, knowing that we were part of the 'team Heartland' that has "done good."

Of course, I realise that not all shareholders have been happy about the way this capital raising has been carried out in particular, and the way small shareholders are being diluted at a discounted price in favour of the big institutions. So here is where the cleverness of my proposed slogan comes in.

" 'On ya Jeff" could also stand for "It's all on you Jeff". You were the one who discounted our share equity away, while giving that discounted deal to the big boys. So it is your fault: "It is all on you Jeff, you ratbag."

So you see the slogan " 'On ya Jeff" satisfies both camps. Those who are happy with Jeff getting one back for the kiwis taking over an Australian bank. And those that are angry about the financial shenanigans and hoops the small shareholders had to jump through to get there. But in the end, we could all unite together under a single slogan and be happy! What do you think? Anyone game to put this 'badge idea' forward as a special resolution to the board ;)?

SNOOPY

[mike2020]

On Ya Jeff could also, decades from now, be slang for epic failure equal to homelessness?

[Rawz]

Should be

kei runga koe jeff

[Bjauck]

Should be

kei runga koe jeff What was Jeff up to? Perhaps Pai ki a Koe, a Jeff!

[X-men]

One of the sheet shares of the year... anyone wants my allotment?

Or it can be 'oh ya Jeff, fuk U..thanks for destroying the Sp'

[Balance]

Give Jeff his due - he realises he has taken Heartland as far as his skill set, experience and energy level can take the group to.

It takes a big & courageous person with strong inner self-confidence and deep conviction to hand the reins of a company he has largely built to another person.

Another person who he hopes can now take HGH to the next decade of growth and increased profitability. I suspect an Australian will take up that role given that Australia is where HGH sees its best growth potential at this stage.

I have my reservations about any NZ company going over to Australia as far too many good NZ companies went over and got their backsides kicked all the way back to NZ, requiring their NZ shareholders to suffer horrendous losses. Unfortunately the NZ companies without proper appreciations of what they face in Australia (big fish from small pond becomes small fish in big pond) and how rough the Aussie companies play.

There are success stories too for sure - Nufarm, A2M, Serko, Hallensteins, Michael Hill, Xero, Smart Pay to name a few but far too many (Telecom, Air NZ, Warehouse, FBU and SKC - which have lost billions of dollars for shareholders, but of greater concern to HGH, financial players like Tower, BNZ, NZI, Equiticorp, Chase which went over and went broke.

So here’s hoping that HGH has done its homework and assessment well and will have a new CEO who will execute its Australian strategy well while keeping NZ safe and profitable.

[Rawz]

Balance, hope you're joking about an Aussie leading the group?? Kiwis end up leading the big aussie banks often enough. Perhaps because kiwi banks are more profitable. Maybe kiwis are just better bankers than the aussies? Chris Flood would be the obvious choice. Looks like a well orchestrated succession plan to me. Chris leading NZ, then leading Aus & now will lead the group.

I dont really see the risk in moving into aussie. They are already there and making truck loads of money. Now they are there with a bank license and will make even more money through great NIM. No doubt they will soon be offering asset finance to completement the reverse mortgages and livestock stuff. This is what they know well and do better than everyone else.

Im not a holder but hope to be around $1 (or under :ohmy:)

[bull....]

Mena ka iti ake te wa mo te Maori me te kanorau me te nui ake o te whakahaere i te pakihi katahi ka pai ake te mahi kararehe. mahi kararehe ****

[Balance]

Balance, hope you're joking about an Aussie leading the group?? Kiwis end up leading the big aussie banks often enough. Perhaps because kiwi banks are more profitable. Maybe kiwis are just better bankers than the aussies? Chris Flood would be the obvious choice. Looks like a well orchestrated succession plan to me. Chris leading NZ, then leading Aus & now will lead the group.

I dont really see the risk in moving into aussie. They are already there and making truck loads of money. Now they are there with a bank license and will make even more money through great NIM. No doubt they will soon be offering asset finance to completement the reverse mortgages and livestock stuff. This is what they know well and do better than everyone else.

Im not a holder but hope to be around $1 (or under :ohmy:)

Only Ralph Norris (ASB to NAB) comes to mind? Shayne Elliot (ANZ) has been out of NZ for the last 30 years after he finished his cadetship at Citibank NZ.

As for HGH making truck loads of money in Australia, how did you quantify that vs its use of capital?

We all want HGH to do well in Australia (be bloody nice for a change) but let's not understate the risks in going there.

[ronaldson]

Balance, hope you're joking about an Aussie leading the group?? Kiwis end up leading the big aussie banks often enough. Perhaps because kiwi banks are more profitable. Maybe kiwis are just better bankers than the aussies? Chris Flood would be the obvious choice. Looks like a well orchestrated succession plan to me. Chris leading NZ, then leading Aus & now will lead the group.

I dont really see the risk in moving into aussie. They are already there and making truck loads of money. Now they are there with a bank license and will make even more money through great NIM. No doubt they will soon be offering asset finance to completement the reverse mortgages and livestock stuff. This is what they know well and do better than everyone else.

Im not a holder but hope to be around $1 (or under :ohmy:)


Lucky I didn't post this earlier today, when I would have said $1.06 was improbable, and under $1.00 impossible. But surely it must have a floor just now pending the retail entitlement offer closing on Monday?

It doesn't make sense to me to sell at these prices. I have subscribed this week under two hats, including for around 20%+ additional shares if these do become available, as some % inevitably will and perhaps more so since the head shares have drifted so low just now.

Patience is what is needed. In 6 months it will almost certainly look different.

[Rawz]

Lucky I didn't post this earlier today, when I would have said $1.06 was improbable, and under $1.00 impossible. But surely it must have a floor just now pending the retail entitlement offer closing on Monday?

It doesn't make sense to me to sell at these prices. I have subscribed this week under two hats, including for around 20%+ additional shares if these do become available, as some % inevitably will and perhaps more so since the head shares have drifted so low just now.

Patience is what is needed. In 6 months it will almost certainly look different.

The cap raises zap the demand in the short term. so always in the past it seems to drift down to the issue price or below?

Agree in 6 to 24 months time it will be a healthy capital gain from $1

[mike2020]

Given the price action after the last raise I will be dissapointed if it stays over a dollar.

[bull....]

Given the price action after the last raise I will be dissapointed if it stays over a dollar.

be amazing , looks like hgh overpaid for challenger.?
challenger announced today it booked a profit on sale of 11m when sold to hgh

[whatsup]

The cap raises zap the demand in the short term. so always in the past it seems to drift down to the issue price or below?

Agree in 6 to 24 months time it will be a healthy capital gain from $1

Raw, didnt happen with RYM !! well below the C R price atm.

[Jaa]

Anyone used Judo Bank (https://www.judo.bank/) in Aus, is this what HGH want to turn Challenger Bank into?

[RGR367]

Participated and opted for more. That's it. That's the post/reply.

[Snoopy]

One of the sheet shares of the year... anyone wants my allotment?

Or it can be 'oh ya Jeff, fuk U..thanks for destroying the Sp'


Lot's of passion around Jeff , both positive and negative. When we get our ' 'On ya Jeff' badges, could I make a suggestion? Those who are happy with Jeff's stewardship, please wear them on the right side of your lapel. But if you think Jeff is a share price destroying rogue, wear your badge on your left lapel. That way, when the team shareholder photograph is taken, we can count up the badges on the right side, compare that total to the number of badges on the left side, and get a 'shareholder vote' on Jeff's time at the top. It will be our little shareholder secret of course. Jeff will never know the result. But it will be a good indication of shareholder mood nevertheless.

I have had a really fraught time completing my capital raising application form on line today. I ended up cursing the fintech foibles of a demonstratively inadequate and demonically coded on line application process. Firstly there were not enough boxes in the bank account name field to hold my bank account name. Then there was some kind of problem right at the end when the form seemingly would not accept my e-mail address.

I rang up Link securities, and they told me to 'fudge my name' by writing it in a shortened form. It will be interesting to see if that gets through the bank payment process. Then the problem at the end where I had to check the highlighted box (the asterisk was alongside the e-mail address box which is why I thought it was the problem) was actually an invisible white box on a white background at the bottom of this last page of the application that I could not see! What a numbskull piece of design, which ended up making me go through the application process four times before I got it right!

Late this afternoon I transferred my ' 'On ya Jeff' badge from my right lapel to my left side.......

SNOOPY

[winner69]

Heartland needs fresh blood as an CEO ….whether Kiwi or Aussie

That Chris Flood would be bad choice …he’s been around too long and as such unlikely to change

Fresh blood, fresh views and maybe even a fresh culture

[Rawz]

The best companies promote within. Shows long term strategic thinking.

[bull....]

In something of a curious move, ASB has trimmed two key term deposit rates Thursday

why

if loan demand is weak, they don't need to grow that deposit base, so they need to dial back on the incoming household deposits, 53% of which are in the form of term deposits

In February 2024, new mortgage loan demand was 4% lower than the average for a February month over the past decade

https://www.interest.co.nz/personal-finance/127348/prospect-ocr-rate-cuts-fade-and-global-forces-and-local-inflation-push

[Balance]

The best companies promote within. Shows long term strategic thinking.

Tell that to Fletcher Challenge - internal appointments one after another until the group nearly went belly up and had to be broken up!

[winner69]

The best companies promote within. Shows long term strategic thinking.

Agree mare but I don’t think Heartland is one of the ‘best’

Something been missing last couple of years …vibe or whatever you want to call it …a sign of a few leaders been there too long and getting bored / losing enthusiasm

Time for new blood and a refresh imho

[mike2020]

Agree mare but I don’t think Heartland is one of the ‘best’

Something been missing last couple of years …vibe or whatever you want to call it …a sign of a few leaders been there too long and getting bored / losing enthusiasm

Time for new blood and a refresh imho

E.g. Fonterra post Theo Spierings. Take away the world domination approach and focus on grassroots earners and your back in business. Theo was an outsider, Miles rose through the ranks and has known from day one what was needed.

[ronaldson]

I think $1.06 will be and remain the floor price currently. As at today you can no longer sell on-market and receive proceeds under T+2 settlement before the retail entitlement offer closes, which will take one depressive factor off the table.

[Rawz]

My guess is we will see very briefly for a day or two 98 cents.. before it pops back over $1 and then it will never see $1 again. never ever

[777]

My guess is we will see very briefly for a day or two 98 cents.. before it pops back over $1 and then it will never see $1 again. never ever

Therefore I assume you won't take up your entitlement since you will be able to get them cheaper.

[Rawz]

Therefore I assume you won't take up your entitlement since you will be able to get them cheaper.

Oh i dont hold. But think its very good value. Just my best guess what will happen. Would be happy to hold at $1.10 even. But at $1 makes it just that much better and would sell some other shares and move into HGH.

[Balance]

I think $1.06 will be and remain the floor price currently. As at today you can no longer sell on-market and receive proceeds under T+2 settlement before the retail entitlement offer closes, which will take one depressive factor off the table.

Market depth points towards institutional selling (ie. part of the $131m placement shares) vs retail buying.

Looks to me like some of the instos are only there for a quick profit rather than long term underlying positions.

Sp is going lower than $1.06?

[RTM]

My guess is we will see very briefly for a day or two 98 cents.. before it pops back over $1 and then it will never see $1 again. never ever

Hmmm....hope this post does not come back to haunt you Mr Rawz ! I really do.

[Rawz]

Hmmm....hope this post does not come back to haunt you Mr Rawz ! I really do.

I remember saying the same thing about OCA. Never see $1 again when it popped below and went back above :scared::scared:

[Snoopy]

I have had a really fraught time completing my capital raising application form on line today. I ended up cursing the fintech foibles of a demonstratively inadequate and demonically coded on line application process. Firstly there were not enough boxes in the bank account name field to hold my bank account name. Then there was some kind of problem right at the end when the form seemingly would not accept my e-mail address.

I rang up Link securities, and they told me to 'fudge my name' by writing it in a shortened form. It will be interesting to see if that gets through the bank payment process. Then the problem at the end where I had to check the highlighted box (the asterisk was alongside the e-mail address box which is why I thought it was the problem) was actually an invisible white box on a white background at the bottom of this last page of the application that I could not see! What a numbskull piece of design, which ended up making me go through the application process four times before I got it right!


I don't remember the last cash issue being this fraught. Jeff was all into 'fintech'. But I am calling this whole process out as 'flabtech'. To save you reaching for your business directory to see what that means I have done it for you:

'flabtech': The art of overly complicating a process via automation, such that the result is more confusing, cumbersome and slower than if that same task was carried out entirely manually.

I got an e-mail saying Heartland, via Link securities had received my application and that it would be processed the next banking day. I did not want to know that. What I wanted to know was that my application had been processed, and indeed it would have been processed yesterday if Heartland just given me the bank account number to which I needed to send the cash issue funds in the first place. Yes I would have had to go into a bank branch myself to do this. But it would have been worth this pain to save the anxiety. I checked my bank balance this morning and saw my funds were still in my account. So now I will have to wait for Saturday to know if my funds have really gone through. And if they haven't, because there are no more full banking days before application close off time, it will all be too late.

I am now frankly over this flabtech filibustering. The first bank that reintroduces cheque books, that provide a secure traceable paper trail with which to control the movement of funds with far less bother than the tech of today, I will move all of my business over to them.

SNOOPY

[Bjauck]

Market depth points towards institutional selling (ie. part of the $131m placement shares) vs retail buying.

Looks to me like some of the instos are only there for a quick profit rather than long term underlying positions.

Sp is going lower than $1.06?
Placement came at a good discount. Those insto managers want to build up the profits to get a good bonus. They can “do” Heartland before retail shareholders even get their rights shares. Why should they have more than Zero commitment to Heartland. All this is for them courtesy of existing shareholders.

[X-men]

Don't see the point to participate....buy at the market now is only 5c cheaper....

One of the sheet shares of the year...

Fuk U Jeff!!!

[Jay]

I am now frankly over this flabtech filibustering. The first bank that reintroduces cheque books, that provide a secure traceable paper trail with which to control the movement of funds with far less bother than the tech of today, I will move all of my business over to them.

SNOOPY
So we can go back to people bouncing cheques all over the country, "the cheque is in the mail (oops no posties shortly either) hmmmm!
I wouldn't hold your breath Snoopy!

[Balance]

Placement came at a good discount. Those insto managers want to build up the profits to get a good bonus. They can “do” Heartland before retail shareholders even get their rights shares. Why should they have more than Zero commitment to Heartland. All this is for them courtesy of existing shareholders.

Worked in the old days when shares were placed with very selected institutions who would not only take the shares & keep them long term, they would also buy more on market as well.

Unfortunately, those days are long gone and the underwriters/brokers these days simply want to earn their fat fees (3%+) by placing the shares to whoever.

[SCOTTY]

I’m happy. Got my full allocation + 100% which increased my holding by 29.2% @ only $1.00ps. :)

Sorry Snoopy but found the online application simple and easy to do.

[Bjauck]

I don't remember the last cash issue being this fraught. Jeff was all into 'fintech'. But I am calling this whole process out as 'flabtech'. To save you reaching for your business directory to see what that means I have done it for you:

'flabtech': The art of overly complicating a process via automation, such that the result is more confusing, cumbersome and slower than if that same task was carried out entirely manually.

I got an e-mail saying Heartland, via Link securities had received my application and that it would be processed the next banking day. I did not want to know that. What I wanted to know was that my application had been processed, and indeed it would have been processed yesterday if Heartland just given me the bank account number to which I needed to send the cash issue funds in the first place. Yes I would have had to go into a bank branch myself to do this. But it would have been worth this pain to save the anxiety. I checked my bank balance this morning and saw my funds were still in my account. So now I will have to wait for Saturday to know if my funds have really gone through. And if they haven't, because there are no more full banking days before application close off time, it will all be too late.

I am now frankly over this flabtech filibustering. The first bank that reintroduces cheque books, that provide a secure traceable paper trail with which to control the movement of funds with far less bother than the tech of today, I will move all of my business over to them.

SNOOPYI don’t think the name is automatically cross-checked to the number. I read that they were working on introducing an automatic verification process to do that as an extra security check! I was flabbergasted as I thought that it would already have been the first security check to do - to make sure the name matched the account number. So perhaps you could have typed Donald Trump as your name…

[RTM]

Don't see the point to participate....buy at the market now is only 5c cheaper....

One of the sheet shares of the year...

Fuk U Jeff!!!

That’s the great thing with the share market, no one is forcing anyone to invest. If you don’t like it, don’t take up the new shares. If you don’t like the company, or it changes, then sell out when opportune. It’s not been a secret that they would need to raise money for their Aussie acquisition. I’ve taken up my allocation and are hoping they do well. But there is certainly some risk that they don’t succeed. Plenty of NZ companies have failed in OZ as others have pointed out. Personally I think they have been doing business long enough there to know what they are doing. Time will tell.

[X-men]

This dog will be 50c by next capital raise

So many companies raised n now in sheet...SML, Skc ....

[Snoopy]

I’m happy. Got my full allocation + 100% which increased my holding by 29.2% @ only $1.00ps. :)

Sorry Snoopy but found the online application simple and easy to do.


Happy for you Scotty but this is disgraceful. How do Heartland know how much they can scale their 'over and above entitlement' application pool by (for in your case no scaling at all), when the application time period has not yet closed and they don't know how many applications for shares in that 'over and above entitlement' pool they are getting yet? Something highly irregular has happened here. This is moving moving my ' 'On ya Jeff' badge which is already on my left lapel, to 'left of the left lapel' stuff.

SNOOPY

[maclir]

They may know from the take up already about what's available to the 'over and above' pool.

[ronaldson]

I think you will find that Scotty has interpreted his/her ability to apply for excess entitlement (and pay for it upon application, as you are required to do) as being an actual allotment, which of course it is not.

Like the rest of us he/she will be refunded all or part of that application cost in good time after the offer closes and the necessary calculations are done to underpin the true number of shares to be allocated.

[Entrep]

AFAIK they can close the offer at any time. Maybe they decided to just allocate to the bulls who got in early and wanted more size?

NVM Snoopy, you can buy on market at $1 and maybe under next week.

[Balance]

Happy for you Scotty but this is disgraceful. How do Heartland know how much they can scale their 'over and above entitlement' application pool by (for in your case no scaling at all), when the application time period has not yet closed and they don't know how many applications for shares in that 'over and above entitlement' pool they are getting yet? Something highly irregular has happened here. This is moving moving my ' 'On ya Jeff' badge which is already on my left lapel, to 'left of the left lapel' stuff.

SNOOPY

Highly irregular.

Nothing to stop someone taking the full allocation plus 100% and selling their existing shares today for quick profit.

Stinks!

[RTM]

Highly irregular.

Nothing to stop someone taking the full allocation plus 100% and selling their existing shares today for quick profit.

Stinks!

I think Ronaldson’s post
https://www.sharetrader.co.nz/showthread.php?8425-HGH-Heartland-Group-Holdings&p=1048828&viewfull=1#post1048828
, will be on the money. If not, then yes….it stinks ! But I doubt it.

[1leon]

The response from Heartland/Link confirms receipt of "your acceptance" of the offer not allocation.

[bull....]

1 taara kei konei tatou

[SCOTTY]

I think you will find that Scotty has interpreted his/her ability to apply for excess entitlement (and pay for it upon application, as you are required to do) as being an actual allotment, which of course it is not.

Like the rest of us he/she will be refunded all or part of that application cost in good time after the offer closes and the necessary calculations are done to underpin the true number of shares to be allocated.

Hi ronaldson. Yes I think you are probably correct as I assumed (probably wrongly) that they would be accepting over subscriptions. :(

[777]

Hi ronaldson. Yes I think you are probably correct as I assumed (probably wrongly) that they would be accepting over subscriptions. :(

They take your money but none of the shares, entitlement and extra applied for, will be issued until after close.

[mshierlaw]

AFAIK they can close the offer at any time. Maybe they decided to just allocate to the bulls who got in early and wanted more size?

NVM Snoopy, you can buy on market at $1 and maybe under next week.

Agree ... share price will likely go below $1 after entitlements are processed. I have applied for 100% over subscription but don't expect to get anything like that amount. Hoping for on market purchase after issue at a sharp price to bolster my stake.

Here's hoping the Australian dream comes to fruition.

[ziggy415]

Highly irregular.

Nothing to stop someone taking the full allocation plus 100% and selling their existing shares today for quick profit.

Stinks!

Surely if for every 6.85 shares you get 1 share for 1 dollar then total shares on issue you get a finite amount of new shares and ability to get 100% gives 2 new shares per 6.85 shares on issue and if everybody takes up entitlement plus 100% then underighters get none left over

[Snoopy]

Surely if for every 6.85 shares you get 1 share for 1 dollar then total shares on issue you get a finite amount of new shares and ability to get 100% gives 2 new shares per 6.85 shares on issue and if everybody takes up entitlement plus 100% then underwrighters get none left over


That's not how I read it. The 1:6.85 entitlement covers the whole $105m being raised from existing shareholders. If you bid for more shares than that, then your bonus shares requested will come from the pool of shares allocated to existing shareholders like X-men, who do not take up their rights. If there aren't enough overbids to take the shareholder applied for shares up to $105m, then and only then, will the underwriters come in to soak up the balance for which there are no existing shareholder buyers.

SNOOPY

[RTM]

That's not how I read it. The 1:6.85 entitlement covers the whole $105m being raised from existing shareholders. If you bid for more shares than that, then your bonus shares requested will come from the pool of shares allocated to existing shareholders like X-men, who do not take up their rights. If there aren't enough overbids to take the shareholder applied for shares up to $105m, then and only then, will the underwriters come in to soak up the balance for which there are no existing shareholder buyers.

SNOOPY

Yes...thats what I think as well.

[777]

I am leaving my final decision until Monday. At this stage I will let them go. Shelling out a pile of money for little short term gain isn't worth the bother. I have enough without them anyway.

[Snoopy]

I am leaving my final decision until Monday. At this stage I will let them go. Shelling out a pile of money for little short term gain isn't worth the bother. I have enough without them anyway.


I think you are too late now. When James Bond applied for some shares yesterday (Thursday), he got the following response from Link/Heartland.

Direct Debit details
"Your bank account 00-0000-0000007-00" will be direct debited by the end of the next business day. Please ensure sufficient funds are available."

The offer ends at 3pm on Monday 22nd April. So by the time you give the instruction on Monday, the money won't come out of your account until Tuesday evening, by which time the offer will have closed. In fact even if you completed your order form today (Friday) that wouldn't be processed until after 5pm on Monday, which is after the 3pm closing deadline. So the cut off date for applications seems to have been the close of business on Thursday, despite the banks crowing about their new digital clearance system that can transfer money between accounts between NZ banks in just a few hours.

Of course if Link/Heartand gave you the number of the bank account into which they wanted your cash issue money deposited to, then you could do it yourself on Monday. But Link/Heartland have not given you that.

SNOOPY

P.S. Just checked my own account tonight (Friday) after filling out my application form on line on Thursday. The money has been taken.

[Rawz]

Offer closes 5pm nzt Monday. I’m sure if they get the paperwork they will stay late to run the direct debits.

SP so close to $1 now I reckon why bother as well. Now highly likely it will go under $1. Just my opinion, often am wrong

[Snoopy]

Offer closes 5pm nzt Monday. I’m sure if they get the paperwork they will stay late to run the direct debits.


Rawz you are correct and I was wrong. The closing time for cash issue applications is indeed 5pm on Monday 22nd April. The 3pm figure that I had remembered from the document is the local closing time in Australia. (AEST). I guess they are currently two hours behind us on the East Coast?

I see on page 8 of the offer document under note 1
"Heartland reserves the right to amend the timetables (including by extending the closing dates for the Offer or accepting late Applications, either generally or in particular cases) subject to the NZX Listing Rules."

So they may indeed stay late to work through those direct debits if they get the paperwork. But as you said it does depend on them getting the paperwork. But the receipt form I received said the paperwork would not be processed until the close of business on the following day (which from personal experience is what happened to me). That means Tuesday if you put your form in on Monday. This suggests to me that e-forms filled out on Monday will not 'get through' until Tuesday and won't be processed.

SNOOPY

[Bikeguy]

Offer closes 5pm nzt Monday. I’m sure if they get the paperwork they will stay late to run the direct debits.

SP so close to $1 now I reckon why bother as well. Now highly likely it will go under $1. Just my opinion, often am wrong

Well said, and based on the times we are in i think you are right.

[biker]

Rawz you are correct and I was wrong. The closing time for cash issue applications is indeed 5pm on Monday 22nd April. The 3pm figure that I had remembered from the document is the local closing time in Australia. (AEST). I guess they are currently two hours behind us on the East Coast?

I see on page 8 of the offer document under note 1
"Heartland reserves the right to amend the timetables (including by extending the closing dates for the Offer or accepting late Applications, either generally or in particular cases) subject to the NZX Listing Rules."

So they may indeed stay late to work through those direct debits if they get the paperwork. But as you said it does depend on them getting the paperwork. But the receipt form I received said the paperwork would not be processed until the close of business on the following day (which from personal experience is what happened to me). That means Tuesday if you put your form in on Monday. This suggests to me that e-forms filled out on Monday will not 'get through' until Tuesday and won't be processed.

SNOOPY

The closing time for applications is 5pm Monday.
If anyone has an application with them by then - even sent electronically at the speed of light a nanosecond before 5pm - they’re in.
Doesn’t matter when it’s processed. They can take as long as they like -within the published dates - but the application was in, on time.
Snoopy you got a receipt on application. Doesn't matter that they processed it the next day.

[winner69]

One day, well into Jeff’s long and illustrious career, a journalist asked the banker why he wasn’t driving great Heartland performance like he used to.

“When Heartland was growing profits I was cold and hungry,” said Jeff. “I’m not cold and hungry anymore.”

Let’s call this “The Jeff Greenslade Problem”. How does a person or an organization keep its creative vitality once they have already become successful, already become comfortable?

This, we think, is one of the cardinal problems of any type of successful business that has seen a lot of growth.

Good that Jeff is ‘retiring’ and definitelybtime for new blood and renewed dynamism in Heartland ….from outside the organisation …beca bad move if they take the easy route and ‘promote’ Chris Flood

[Balance]

One day, well into Jeff’s long and illustrious career, a journalist asked the banker why he wasn’t driving great Heartland performance like he used to.

“When Heartland was growing profits I was cold and hungry,” said Jeff. “I’m not cold and hungry anymore.”

Let’s call this “The Jeff Greenslade Problem”. How does a person or an organization keep its creative vitality once they have already become successful, already become comfortable?

This, we think, is one of the cardinal problems of any type of successful business that has seen a lot of growth.

Good that Jeff is ‘retiring’ and definitelybtime for new blood and renewed dynamism in Heartland ….from outside the organisation …beca bad move if they take the easy route and ‘promote’ Chris Flood

Think of this another way, W69 - Jeff made a lot of money for shareholders who got in when he helmed the transformation of Marac into Heartland. He is now making way to enable new shareholders to get in at a great price to go for the next ride to transform Heartland into an Australasian bank!

[Bjauck]

Think of this another way, W69 - Jeff made a lot of money for shareholders who got in when he helmed the transformation of Marac into Heartland. He is now making way to enable new shareholders to get in at a great price to go for the next ride to transform Heartland into an Australasian bank! There is the three generation aphorism for family businesses - first generation establishes the business, second generation builds it up, third generation loses it. Hopefully Jeff has not gone through all three stages, and that we are actually still in the first generation. Of course Heartland isn’t a family business, although Marac was an off-shoot from Fletcher’s I think.

[maclir]

I think nothing to do with Fletcher's. Picked up by NZI in the 90s, somewhere along the line became part of Pyne Gould, Geoff and Chris Flood came together there, ie as MARAC.

[winner69]

From Fletcher archives

History
The Manufacturers and Retailers Acceptance Co Ltd was a new company set up by Fletcher Trust & Investment Co Ltd, CAGA (Australia) and Philips Electrical Industries. [1] In 1968 arrangements were made for this company to buy the whole of the issued share capital of Fletcher Holdings' company Pacific Factors Ltd, thus increasing Fletcher Holdings' interest in the company to 38%.[2]
In October 1972 Marac Finance Ltd and its subsidiaries were reorganised into a new holding company, Marac Holdings Ltd. A new wholly-owned merchant bank subsidiary, Marac Corporation Ltd, was also set up. The introduction of a new shareholder, Security Pacific National Bank, also led to a decrease in Fletcher Trust's equity in the company from 38% to 30%. [3]
In 1985 Fletcher Challenge Ltd sold its 60% shareholding to NZI Ltd. [4]

[maclir]

From Fletcher archives

History
The Manufacturers and Retailers Acceptance Co Ltd was a new company set up by Fletcher Trust & Investment Co Ltd, CAGA (Australia) and Philips Electrical Industries. [1] In 1968 arrangements were made for this company to buy the whole of the issued share capital of Fletcher Holdings' company Pacific Factors Ltd, thus increasing Fletcher Holdings' interest in the company to 38%.[2]
In October 1972 Marac Finance Ltd and its subsidiaries were reorganised into a new holding company, Marac Holdings Ltd. A new wholly-owned merchant bank subsidiary, Marac Corporation Ltd, was also set up. The introduction of a new shareholder, Security Pacific National Bank, also led to a decrease in Fletcher Trust's equity in the company from 38% to 30%. [3]
In 1985 Fletcher Challenge Ltd sold its 60% shareholding to NZI Ltd. [4]

Well, I'll be. How did it get from its starting point on the North Shore to being tangled up with Flethcher's?

[ronaldson]

Offer closes 5pm nzt Monday. I’m sure if they get the paperwork they will stay late to run the direct debits.

SP so close to $1 now I reckon why bother as well. Now highly likely it will go under $1. Just my opinion, often am wrong

Hey Rawz - I said $1.06 was bottom and it reached $1.03 so I think we split the difference!

Tomorrow or Wednesday we will all know how much excess entitlment has been allocated to those who applied for more. Since shares were well bid today I don't think selling after the retail allotment to take profits will have much effect on the near term price as it is obvious folk are still willing to hoover them up even now.

So roll on settlement of the acquisition of Challenger!

[boysy]

Ive been told Challenger bank has lent some serious coin to local property developers who no one else locally would touch ..... imagine some of the property debt written by Challenger won't be looking that flash at the moment hope heartland is all over this exposure though I'm not sure they have a specific property division

[fish]

Just received a link market services email acknowledgement of my payment for my entitlement plus 100% also stating shares expected to be allotted on the 26 April .

[ronaldson]

Just received a link market services email acknowledgement of my payment for my entitlement plus 100% also stating shares expected to be allotted on the 26 April .

Correct, and they are available to be traded on the NZX on 26 April but on the ASX only from Monday 29 April.

But the timetable also states that the announcement of the results of the Retail Entitlement Offer will be made on Wednesday 24 April, meaning, I anticipate, that holders who applied for more than their base entitlement will learn then what additional amount/proportion of shares they can expect to be alloted. And in turn that calculation should inform as to the amount of refund of surplus application monies that will be returned to that particular applicant in due course.

[777]

Submitted my allocation at 1445 and money went out of account at 2214.

[ronaldson]

Trading range today $1.09 to $1.04, with VWAP at $1.055 on still quite significant volume, so market flailing away at where to settle after the capital raise.

Tomorrow will tell us more. I wonder if we will get some SPH Notices? Does anyone think it is curious that the only disclosure so far (apart from a couple from Directors) is from Jarden/Harbour indicating they are now sub 5%?

[forest]

Trading range today $1.09 to $1.04, with VWAP at $1.055 on still quite significant volume, so market flailing away at where to settle after the capital raise.

Tomorrow will tell us more. I wonder if we will get some SPH Notices? Does anyone think it is curious that the only disclosure so far (apart from a couple from Directors) is from Jarden/Harbour indicating they are now sub 5%?

Yes, I do. Also the fact that posters telling us that they get allocated their entitlement plus 100% extra shares makes one think that a lot of people are not taking up their entitlement.
This could easily end up sub one dollar for some time I think.

[777]

Yes, I do. Also the fact that posters telling us that they get allocated their entitlement plus 100% extra shares makes one think that a lot of people are not taking up their entitlement.
This could easily end up sub one dollar for some time I think.

No one knows what extra shares they have been allocated until later this week.

[RTM]

Ive been told Challenger bank has lent some serious coin to local property developers who no one else locally would touch ..... imagine some of the property debt written by Challenger won't be looking that flash at the moment hope heartland is all over this exposure though I'm not sure they have a specific property division

And who told you that ?
If true, I expect that they should get a premium interest rate.

[forest]

No one knows what extra shares they have been allocated until later this week.

Oops, 777 you are right, I misunderstand some of the above post. They applied for an extra 100%, the shares will be allocated the 26 of April.

[nztx]

SP dont look too flash ATM - does it .. that's what happens when an outfit displays an ongoing habit of wanting to have it's cake & eat it too - without leaving too much accrued value in the stakeholder's shares ;)

Let's hope the future results are every bit as rosy as the $200m 2 year out dream otherwise the pieces of the cake among the enlarged issued capital may not deliver up the expected smiles on the faces of the boys & girls ;)

[Snoopy]

SP dont look too flash ATM - does it .. that's what happens when an outfit displays an ongoing habit of wanting to have it's cake & eat it too - without leaving too much accrued value in the stakeholder's shares ;)


I was listening to one of those radio business broadcasts today. The presenter was mentioning seven companies that had announced a change in CEO in the past few weeks. There was Ross Taylor from Fletchers, Umbers from Ryman, Brent from Oceania and in the midst of it all was 'Our Jeff'. The way the spiel was grouped made me sit up and take notice as it didn't put Jeff in very good company. I couldn't help feeling Jeff deserved better than being mentioned with that motley lot, even if the Heartland share price trajectory might suggest otherwise.

I think a lot of the Heartland share price slump is macro environment related, rather than Heartland specific. Unlike those other departing CEOs, Jeff is at least doing what he said he would do. Sure recapitalising Challenger is costing a pile of money. But this was very well signalled at the AGM and nothing has really changed company wise since then. It is just that high interest rates are bringing all spending under scrutiny. It is simply unfashionable to 'spend up big' right now. And whatever company does it gets punished, regardless of the business case behind the spend.

OK Jeff may yet earn comparison with those other departing CEOs, if the provisions cupboard is found bare after he leaves, and he has been found to be massaging some frumpy old loans that should have been cauterized. But right now I am prepared to give Jeff the benefit of the doubt. ' 'On ya Jeff. '

SNOOPY

[winner69]

Jeff was pretty good Snoops but things started going down hill when he started using the adjusting/normalising trick to smooth profits and then went down the ‘legacy issues’ path

Adjusting/normalising to make profits look good ….legacy issues were stuff ups he didn’t get around to fixing.

Echos of Ross Taylor at Fletchers eh

Might look back to remind myself what happened to GE when the master of profit smoothing Jack Welch left and they reverted to proper reporting.

[Rawz]

Jeff was pretty good Snoops but things started going down hill when he started using the adjusting/normalising trick to smooth profits and then went down the ‘legacy issues’ path

Adjusting/normalising to make profits look good ….legacy issues were stuff ups he didn’t get around to fixing.

Echos of Ross Taylor at Fletchers eh

Might look back to remind myself what happened to GE when the master of profit smoothing left in Jack Welch left and they reverted to proper reporting.

You reckon the new CEO will come in and clean out any skeletons in the closet?

[winner69]

You reckon the new CEO will come in and clean out any skeletons in the closet?

Got to get through year ending June 24 first …no doubt a few/lot more ‘one offs’ will be forthcoming

And F25 will disappoint as Challenger integration will be much more difficult than first thought

Actual Reported NPAT in F22 was &95.1 and then $95.9 in F23 and Jeff says about $95m this year F24 but I betcha it will be <$90m and F25 won’t be nuch better and that’s before any big clean out you suggested might happen.

Pretty gloomy outlet eh

But keep on reporting normaised /adjusted npat we’ll be OK and share price will creep up

[ronaldson]

No announcement yet re the outcome of the retail component of the capital raise. The Timetable accompanying the documentation scheduled that for today so Link/HGH are cutting it fine.

[pierre]

No announcement yet re the outcome of the retail component of the capital raise. The Timetable accompanying the documentation scheduled that for today so Link/HGH are cutting it fine.
The retail offer was 81% subscribed. Those who applied for extra shares got 'em all. The underwriter left holding the baby for 15 million shares. Probably a bit of selling pressure to come over the next week or so.

[iceman]

HGH
24/04/2024 16:12
OFFER
PRICE SENSITIVE
REL: 1612 HRS Heartland Group Holdings Limited

OFFER: HGH: Heartland completes Retail Entitlement Offer (81% take up)

NZX/ASX release
24 April 2024

Heartland completes Retail Entitlement Offer (81% take up) and NZ$210m equity
raise

Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland) is pleased to
announce that it has successfully completed the retail entitlement offer
component (Retail Entitlement Offer) of its NZ$105 million underwritten 1 for
6.85 pro-rata accelerated non-renounceable entitlement offer (Entitlement
Offer).

Heartland is pleased to confirm it has raised a total of NZ$210 million under
the Placement and Entitlement Offer announced on 8 April 2024. This includes
gross proceeds of approximately NZ$131 million received under the
institutional component of the Entitlement Offer and Placement.

Heartland received strong support from its Eligible Retail Shareholders for
the Retail Entitlement Offer, in line with Heartland's expectations. The
Retail Entitlement Offer raised gross proceeds of approximately NZ$79
million. Heartland's Eligible Retail Shareholders subscribed for
approximately 64 million new fully paid ordinary shares in Heartland (New
Shares) (including approximately $14 million of oversubscriptions).

Eligible Retail Shareholders who took up their entitlements in full and
applied for New Shares in excess of their entitlements received all of the
New Shares for which they applied. The effective take up rate by Eligible
Retail Shareholders was therefore approximately 81%.

The approximately 15 million New Shares not taken up under the Retail
Entitlement Offer have been allocated to the underwriter and/or to
sub-underwriters procured by the underwriter, including institutional
investors who participated in the Placement and wished to purchase more
shares.

The Placement and Entitlement Offer structure utilised by Heartland has met
Heartland's key objectives, including:
1. ensuring all Eligible Retail Shareholders were treated fairly - all
applications for shares by Eligible Retail Shareholders were accepted,
meaning they could maintain their existing percentage shareholding through
the offer; and
2. introducing and encouraging institutional participation (including in
particular by investors in Australia) - institutional demand through the
equity raise exceeded the total NZ$210 million raised.

The New Shares to be issued under the Retail Entitlement Offer are expected
to commence trading on the NZX Main Board on Friday 26 April 2024 and on the
ASX on Monday 29 April 2024 and will rank equally with existing Heartland
shares.

Heartland wishes to thank all existing and new shareholders who participated
in the equity raise for their continued support.

- ENDS -

The person(s) who authorised this announcement:
Jeff Greenslade, Chief Executive Officer
Andrew Dixson, Chief Financial Officer

For further information, please contact:
Nicola Foley
Group Head of Communications
+64 27 345 6809
nicola.foley@heartland.co.nz
Level 3, Heartland House, 35 Teed Street, Newmarket, Auckland, New Zealand

[Rawz]

Wow not good. Very likely SP goes under $1 now

[ronaldson]

Wow not good. Very likely SP goes under $1 now

Not sure why you think that. Even today after the announcement the close price was $1.06 and the VWAP was $1.0684.

I applied, under two hats, for the full entitlement plus about 20% extra in each case, albeit the sums were small, less than $5k in aggregate meaning I will still have less than 30k in all. My conclusion about the roughly $15m shortfall overall is that, firstly, it reflects that many folk do not have surplus monies lying around currently, and secondly and most importantly the share price following the institutional allocation take up was consistently sub $1.10 so not indicative of windfall gain by participating. Add in the risk factor and more retail holders than usual have flagged their involvement away.

Jarden/Harbour can easily absorb the sum involved and rather than flood the market in the near term will hold until the dust has well and truly settled on the transaction. In summary the capital raise was well priced to achieve the desired outcome, and underwriters are paid for a reason, which is certainty.

[Ggcc]

Wow not good. Very likely SP goes under $1 now
It will just mean we will see it hang around these prices for a while. I will buy some more if it goes below $1

[Rawz]

Not sure why you think that. Even today after the announcement the close price was $1.06 and the VWAP was $1.0684.

I applied, under two hats, for the full entitlement plus about 20% extra in each case, albeit the sums were small, less than $5k in aggregate meaning I will still have less than 30k in all. My conclusion about the roughly $15m shortfall overall is that, firstly, it reflects that many folk do not have surplus monies lying around currently, and secondly and most importantly the share price following the institutional allocation take up was consistently sub $1.10 so not indicative of windfall gain by participating. Add in the risk factor and more retail holders than usual have flagged their involvement away.

Jarden/Harbour can easily absorb the sum involved and rather than flood the market in the near term will hold until the dust has well and truly settled on the transaction. In summary the capital raise was well priced to achieve the desired outcome, and underwriters are paid for a reason, which is certainty.

My thinking is that these cap raises sap demand, and since it wasn’t oversubscribed ALL demand is sapped. So sellers will have to find buyers and I presume it will be at or below $1.

No doubt a few traders in to make a quick 5-7% gain asap. So will look to exit those, thus sell side pressure.

Lastly it was what happened in the past (SP goes to cap raise price). The past is often a good predictor of the future.

I’m just having a guess. I think current levels are very attractive so if I was a holder I wouldn’t be fussed. Basically can take comfort that HGH will one day trade again in the 1.2-1.5x book value range, especially as rates cycle back down.

[thegreatestben]

I assume everyone elses new shares are now issued? SP hanging in there at 1.06 - 1.07 and not a huge amount of volume so far...

[ronaldson]

I see the current pricing as stable/at a level where it will remain, at least until after the Challenger transaction completes shortly.

The Capital Change Notice has been published, but as a holder I am still awaiting the updated holder statement from Link. Maybe later today or Monday.

The ASX trading in the new issue doesn't commence until Monday. The insto take up seems to have been strong and they have less incentive to take a quick profit at current levels anyway.

[777]

My new ones are showing on link site.

[maclir]

Mine too. Oddly, ticked up to 1.07

[Grimy]

I've just received my entitlement confirmation from Heartland.

[mshierlaw]

I had to manually alter my holding in Jarden Direct to show the new shares.

[777]

I had to manually alter my holding in Jarden Direct to show the new shares.

That is because you didn't buy them thru Jardens.

[ronaldson]

Share price under pressure today with ASX trading available for the retail issue. AU$0.95 and NZ$1.03.

Never mind. I believe the Challenger acquisition is scheduled to settle on Wednesday. Lawyers on both sides of the Tasman doubtless burning the midnight oil tonight and tomorrow evening. However it is this will be an unprecedented event for New Zealand. Let's hope it is/turns out to be a red letter day, rather than a red number occasion!

[Rawz]

What is book value after this cap raise?

[winner69]

What is book value after this cap raise?

About $1.32 on December numbers and adding cap raise numbers

[Rawz]

About $1.32 on December numbers
so something like $1.27 after cap raise?

[winner69]

so something like $1.27 after cap raise?

Didn't phrase the 1.32 that well ...it's allowing for the cap raise.

Sorry

[Rawz]

Didn't phrase the 1.32 that well ...it's allowing for the cap raise.

Sorry

oh okay phew. thought $1.27 was not that good lol

[Rawz]

buying any HGH around here is super duper cheap. And punters on the other place saying 90-95cents possible. OMG what a bargain that would be. Like free money?

[percy]

https://www.nzx.com/announcements/430226

Heartland announces receipt of final regulatory approvals for Challenger Bank acquisition

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce that it has received the necessary regulatory approvals from the Australian Prudential Regulation Authority and the Reserve Bank of New Zealand for Heartland Bank Limited’s (Heartland Bank) acquisition of Challenger Bank Limited (Challenger Bank) from Challenger Limited (ASX: CGF).

Heartland Bank expects to complete the acquisition of Challenger Bank today, 30 April 2024.

[Rawz]

https://www.nzx.com/announcements/430226

Heartland announces receipt of final regulatory approvals for Challenger Bank acquisition

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to announce that it has received the necessary regulatory approvals from the Australian Prudential Regulation Authority and the Reserve Bank of New Zealand for Heartland Bank Limited’s (Heartland Bank) acquisition of Challenger Bank Limited (Challenger Bank) from Challenger Limited (ASX: CGF).

Heartland Bank expects to complete the acquisition of Challenger Bank today, 30 April 2024.

well done Heartland. The foundations are set for growth, and what a long runway it is

[Goose]

Yes, well done Heartland indeed - once again doing what they say they were going to do. They announced the intention of acquisition way back in October 2022 so it has been a long road to arrive at full approval today and obviously wasn't an easy process.

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HGH/400869/381579.pdf

I am looking forward to things settling down now and an improved NIM through lower cost of funding. Roll on a bright future.

Disc: Holding and fully participated in the allotment

[RTM]

well done Heartland. The foundations are set for growth, and what a long runway it is

Runways are usually pretty flat.

[LaserEyeKiwi]

Runways are usually pretty flat.

The purpose of a runway is to provide a surface to allow sufficient speed for takeoff :)

[RTM]

The purpose of a runway is to provide a surface to allow sufficient speed for takeoff :)

Yes...and I have seen the ones on aircraft carriers. They are often in rocky seas as well.

[LaserEyeKiwi]

Yes...and I have seen the ones on aircraft carriers. They are often in rocky seas as well.

Heh. Although a modern aircraft carrier decks are more of a slingshot than a runway.

[thegreatestben]

Heartland Bank completes acquisition of Challenger Bank

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) is pleased to confirm the completion of Heartland Bank Limited’s (Heartland Bank’s) acquisition of Challenger Bank Limited (Challenger Bank) from Challenger Limited (ASX: CGF).

Completing the acquisition makes Heartland Bank the first New Zealand registered bank to acquire an Australian authorised deposit-taking institution (ADI). The acquisition is a critical step in Heartland’s strategy for achieving its long-term growth ambitions and expansion in the Australian market, where it is already well-established.
Heartland’s Australian Reverse Mortgage business, Heartland Finance, is Australia’s leading provider of reverse mortgages with 42% market share. Since 2004, Heartland Finance has helped more than 27,500 Australians to live a more comfortable retirement by releasing equity from their homes. Heartland’s Livestock Finance business, StockCo Australia, is a leading specialist provider of livestock finance. StockCo Australia has been providing livestock finance solutions to food producers across Australia since 2014, with origins in New Zealand dating back to 1995. At 31 December 2023, Heartland Finance and StockCo Australia together had approximately NZ$2 billion of gross finance receivables.

On 2 May 2024, Heartland will transfer Heartland Australia Holdings Pty Limited and its subsidiaries (which include Heartland Finance and StockCo Australia) (together, Heartland Australia) to Challenger Bank.
The total consideration paid for the acquisition of Challenger Bank was AU$115.7 million and comprised:
1. the total purchase price of AU$46.4 million, reflecting the initial purchase price of AU$36.7 million plus AU$9.7 million of additional consideration due to the deposit raising programme undertaken by Challenger Bank prior to completion, and
2. an additional payment of AU$69.3 million, reflecting the increased capital being held by Challenger Bank following its pre-completion purchase of AU$574.3 million of reverse mortgages from Heartland Australia.

Challenger Bank’s deposit raising programme, undertaken prior to completion, positions Heartland well for accelerated growth in Australia. Between 30 December 2023 and 26 April 2024, Challenger Bank achieved retail deposit growth of AU$891.2 million at a rate that is 172 bps lower than Heartland Australia’s current cost of funds.

Introducing Heartland Bank (Australia)

From 1 May 2024, Challenger Bank will begin trading as Heartland Bank – a digital specialist bank (Heartland Bank (Australia)).
Drawing on Heartland’s expertise in New Zealand, and its successful track-record in Australia, Heartland Bank (Australia) will focus on providing Australians with specialist banking products that are the best or only of their kind, through digital channels. Once Heartland Finance and StockCo become part of Heartland Bank (Australia), it will be Australia’s only specialist bank provider of both reverse mortgages and livestock finance.
Expansion will be enabled through access to retail deposits, providing the advantage of a lower cost of funds. As such, Heartland Bank (Australia) will continue to actively raise deposits – its 6-, 9- and 12-month Term Deposit offers are currently market leading.
Leveraging retail deposit funding and Heartland’s New Zealand product and distribution expertise, Heartland Bank (Australia) may pursue future opportunities to expand into new product segments, such as Motor Finance and Asset Finance. Heartland has a history of success with these products in New Zealand, and considers these sectors to be underserviced by larger banks in Australia.

Board and Management updates

Heartland Bank (Australia) Board

Heartland is pleased to announce the appointment of the new Heartland Bank (Australia) Board of Directors:
‒ Geoff Summerhayes has resigned from the Heartland Board and has been appointed Chair and Independent, Non-Executive Director of Heartland Bank (Australia)
‒ Shane Buggle, Lyn McGrath (who sat on the Challenger Bank Board prior to Heartland’s acquisition), Vivienne Yu and Bruce Irvine (currently Chair and Independent Non-Executive Director of Heartland Bank) have been appointed Independent, Non-Executive Directors of Heartland Bank (Australia)
‒ Leanne Lazarus (currently Chief Executive Officer of Heartland Bank) and Jeff Greenslade (currently Chief Executive Officer and Executive Director of Heartland, and Non-Independent, Non-Executive Director of Heartland Bank) have been appointed Non-Independent, Non-Executive Directors of Heartland Bank (Australia).

The highly experienced Heartland Bank (Australia) Board has a strong level of independence and knowledge of prudential regulatory requirements to drive growth and expansion in Australia. For more information, go to heartlandgroup.info/about-heartland/board-of-directors.

Heartland Bank (Australia) Management

Heartland is pleased to confirm the appointment of Michelle Winzer as Chief Executive Officer of Heartland Bank (Australia) will be effective from 22 July 2024.
Chris Flood has been appointed Acting Chief Executive Officer of Heartland Bank (Australia), effective 1 May 2024 and ceased being a senior manager of Heartland. Chris is expected to return to his role as Deputy Chief Executive Officer of Heartland later in the 2024 calendar year, allowing time for a comprehensive handover with Michelle.
Michelle and Chris will be supported by a management team with extensive experience in banking and financial services. For more information, go to heartlandgroup.info/about-heartland/management.

Heartland Board

Heartland also confirms that John Harvey has been appointed to the Heartland Board as an Independent, Non-Executive Director. John remains on the Heartland Bank Board as a Non-Independent, Non-Executive Director.
Following the announcement on 8 April of her intention to resign, Heartland wishes to confirm that the resignation of Independent, Non-Executive Director, Ellie Comerford, will be effective from 26 June 2024. Ellie has served on Heartland Boards for more than seven years. Heartland Board Chair, Greg Tomlinson, wishes to thank Ellie on behalf of the Heartland Board for her significant contribution, dedication and commitment to Heartland throughout that period, particularly in relation to her experience and associated advice on the Australian market.
Heartland is well progressed in its recruitment of new Australian candidates for the Heartland Board and a further market update will be provided in due course.

[ronaldson]

These boys and girls are not wasting any time! Transformation all done by the end of the week.

Fingers crossed that the go forward from this point is just as efficient!

[Simsee]

Trust Jeff. This has been long planned and very executed. There is no doubt their is a very large market for what HGH is selling and the opportunity to add on doing what they have well proved more than capable of doing in motor vehicle and other markets is very large indeed. I predict in a years time $1 a share shall look very very cheap indeed. Trust Jeff he’s not let us down so far

[Rawz]

2m shares gone through at $1.03 :ohmy:

If these were picked up in the cap raise thats an easy $60k profit for a few weeks work

[ronaldson]

Challenger Bank website changed today to reflect it is trading as Heartland Bank now. Probably there is a brief notice period to actually implement a formal name change?

[RTM]

2m shares gone through at $1.03 :ohmy:

If these were picked up in the cap raise thats an easy $60k profit for a few weeks work

Yes...and a happy buyer as well. Good to see. The price seems to be supported to stay greater than $1.00 or so.

[thegreatestben]

https://www.fitchratings.com/research/banks/fitch-revises-outlook-on-heartland-group-holdings-to-stable-affirms-at-bbb-01-05-2024

Some good reading about how acquisition of CBL is viewed

[Bjauck]

https://www.fitchratings.com/research/banks/fitch-revises-outlook-on-heartland-group-holdings-to-stable-affirms-at-bbb-01-05-2024

Some good reading about how acquisition of CBL is viewed
Thanks for that post. That is a long-term positive. They approve of Heartland’s risk controls. They think the.purchase of Challenger will help improve Loan to Deposit ratio.

[RTM]

https://www.fitchratings.com/research/banks/fitch-revises-outlook-on-heartland-group-holdings-to-stable-affirms-at-bbb-01-05-2024

Some good reading about how acquisition of CBL is viewed

Ditto...good to have a perspective that is not all doom and gloom as the share price wallows around the cash issue price.

[X-men]

Another dog stock too raising capital in the worst time of economy

[Ggcc]

Another dog stock too raising capital in the worst time of economy
Every dog has his day.

[mshierlaw]

Another dog stock too raising capital in the worst time of economy

Predictions seem to be coming to fruition with share price likely to dip under offer rate this week. Will be watching closely next week to see if I can pick up some more at a bargain. In hindsight not sure why I participated in the capital raise. The only one that has worked for me to date has been IFT.

[bull....]

westpac result yest pretty ho hum.
nim's flat and inflationary costs up.
so smaller players might be nims down , costs up ?

[Greekwatchdog]

westpac result yest pretty ho hum.
nim's flat and inflationary costs up.
so smaller players might be nims down , costs up ?

HGH don't carry anywhere near the staff Westpac do. Costs up everywhere in general, but I suspect once Challenger is incorporated the NIM will improve for HGH due to cheaper lending.

DISC. Looking to buy back in

[Simsee]

HGH don't carry anywhere near the staff Westpac do. Costs up everywhere in general, but I suspect once Challenger is incorporated the NIM will improve for HGH due to cheaper lending.

DISC. Looking to buy back in

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/430531/417838.pdf
Always good to see executives and directors putting up their own $. Onwards and upwards

[Greekwatchdog]

http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/HBL/430531/417838.pdf
Always good to see executives and directors putting up their own $. Onwards and upwards

Sure, but to me that looks part of the Capital Raise notices. I do note Greg T didn't take part in it, well doesnt seem to have.

[winner69]

Sure, but to me that looks part of the Capital Raise notices. I do note Greg T didn't take part in it, well doesnt seem to have.


Greg put $14m in the placement

[Entrep]

One buck stock

[Joshuatree]

Predictions seem to be coming to fruition with share price likely to dip under offer rate this week. Will be watching closely next week to see if I can pick up some more at a bargain. In hindsight not sure why I participated in the capital raise. The only one that has worked for me to date has been IFT.

Good on you ,I bought in too Best way I can help the company I own part of is to help fund it's growth etc

[jonu]

One buck stock

My entry point!

[Greekwatchdog]

Greg put $14m in the placement

Thanks W69, Missed that.

[777]

For those that wanted them below $1.00 here is your chance. 99c now.

[Bikeguy]

I think there may have been quite a few that expected to make a quick profit off this CR that are now realising that breaking even will be a good result,
Absolute buy for a medium/long term hold though,

[bull....]

westpac result yest pretty ho hum.
nim's flat and inflationary costs up.
so smaller players might be nims down , costs up ?

anz had its turn yest

same flat result
nim down
costs up
arrears up 18% in NZ

same story as westpac , so no way in hell hgh can be not doing the same i reckon ... timber

[Bikeguy]

anz had its turn yest

same flat result
nim down
costs up
arrears up 18% in NZ

same story as westpac , so no way in hell hgh can be not doing the same i reckon ... timber

You sum it up fairly I think.

[winner69]

anz had its turn yest

same flat result
nim down
costs up
arrears up 18% in NZ

same story as westpac , so no way in hell hgh can be not doing the same i reckon ... timber

Profit warning coming up in next I think

Add in challenges and costs of getting Heartland Bank Australia up and running F25 will probably see even lower profits

[Filthy]

For those that wanted them below $1.00 here is your chance. 99c now.

A few stocks at pretty much bang on $1 now -

HGH
GXH
ARV
STU

HGH probably the pick of the bunch...

[Bobdn]

Interesting observation Filthy.

One can't buy anything for a dollar these days in this country except for a share in a NZ publicly listed company.

No need to worry about inflation on the NZX.

I know I go on but, as an aside, I'm just looking at a Direct Broking contract note from 3 May 1993 which says I bought 500 BIL for $1.01 for a total of $536. $25 brokerage and $6 trade fee. I can't remember doing this but I must have purchased them. So $1.01. In 1993. Amazing. BIL - that's me averaging down all those years ago.

[Rawz]

What is BIL and how many shares on issue at $1??

[Bobdn]

It was Brierley Investments. I can't remember it's market capitalisation at its peak. However it was a big deal in its day. I started buying in 1987 lol - a few months before the crash.

https://en.wikipedia.org/wiki/GL_Limited

Lots of interesting corporate history here:

https://www.nzonscreen.com/title/boy-from-island-bay-2008

[whatsup]

It was Brierley Investments. I can't remember it's market capitalisation at its peak. However it was a big deal in its day. I started buying in 1987 lol.

https://en.wikipedia.org/wiki/GL_Limited

Lots of interesting corporate history here:

https://www.nzonscreen.com/title/boy-from-island-bay-2008

BILLIONS and then he finished up in the SLAMMER !!

[Bobdn]

A market cap of 7.7 bn in 1986! Huge.

Anyway, that's my trip down memory lane, thanks to a time when we received contract notes in the actual mail.

I'll hand the thread back over to HGH shareholders and head back to the Black Monday thread.

[bull....]

Profit warning coming up in next I think

Add in challenges and costs of getting Heartland Bank Australia up and running F25 will probably see even lower profits

my guess too , aus will take time

[alokdhir]

my guess too , aus will take time

All the favourite yield stocks of this forum taking a beating ...HGH / GNE and now even TRA ...whats cooking ? TRA 30 DSMA went below 60DSMA after a year ...start of a downtrend like HGH / GNE ? Maybe retail capitulation going on while institutional stocks like FPH / IFT / MFT/ CEN holding up better ....very interesting times for selected and retail favourite stocks ....NZ economy almost at rock bottom ...should start showing in data soon then market may become more healthier ...imo

[bull....]

All the favourite yield stocks of this forum taking a beating ...HGH / GNE and now even TRA ...whats cooking ? TRA 30 DSMA went below 60DSMA after a year ...start of a downtrend like HGH / GNE ? Maybe retail capitulation going on while institutional stocks like FPH / IFT / MFT/ CEN holding up better ....very interesting times for selected and retail favourite stocks ....NZ economy almost at rock bottom ...should start showing in data soon then market may become more healthier ...imo

bit like the US mag7 we have mag 4 lol concentration like most markets at moment

[alokdhir]

bit like the US mag7 we have mag 4 lol concentration like most markets at moment

Guess which fund has all 4 ? Happy I switched to that back from HGH / GNE at last CR ...worked very well for me but HGH now sounding like a bargain for Long termers looking for yield and capital growth possibility

[bull....]

Guess which fund has all 4 ? Happy I switched to that back from HGH / GNE at last CR ...worked very well for me but HGH now sounding like a bargain for Long termers looking for yield and capital growth possibility

maybe , but buy in price is yet to be determined. div's amount uncertainty exist's because of uncertain profits at this stage.

[Rawz]

we will never see sub $1 again.

well done to those that got some at 99 cents.

[Lego_Man]

we will never see sub $1 again.

well done to those that got some at 99 cents.


The best part is, you can buy some today for a mere 1% more ;-)

[Rawz]

The best part is, you can buy some today for a mere 1% more ;-)

That’s a bit pricey for me

Prefer $1 or below :D