Mr market is either unimpressed or slow to react.
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Mr market is either unimpressed or slow to react.
Very good result considering most of the Aussie banks got downgraded.
What am i not seeing with this!!!Good news from Fitch,reasonable divy and good management but know market interest😕
Well seeing as you ask I will opine, (not facts, just my opinion). RBNZ has said they are not allowed to pay dividends until they get permission from them which may not be forthcoming for quite some time. Banks in Australia and the US as a group are down about 40% because basically banks are going to suffer a lot of loan defaults through this Covid 19 thing. HGH are down in line with other banks in terms of the percentage drop so they're not cheap per se, they just appear to be.
Another reason is we don't have Percy regularly "supporting" this stock any more and I'd wager a lot of other regulars on here are also out, including myself.
Many people own banks stocks for their reliable dividends...it turns out they're not reliable. My 2 cents.
Disc: Not holding.
I thought Heartland group holdings could still pay a divy if they thought appropriate?
They might be able to find a loophole to do so, but if they did pay divi, I imagine will get some bad press if they have had government support. I wonder how much of the old divi went back into the reinvestment plan, and in which case might not effect all shareholders as the net effect might be the same.
If they retain earnings and you need cashflow, simply sell 2% of your holdings every 6 months.
Who can say for sure on the divvy front but the new IFRS reporting standard, sorry can't remember which number it is, requires them to book expected Covid 19 losses up front so you can expect substantial provisioning for this when they announce their year end result in August. Check out some of the provisioning the Australian banks have been doing !
I'm very cautious with this one as basically banks become a form of social welfare organisation for business in really tough times. They will be "supporting" a lot of business's at this point in time and many won't make it. A lot of the massive amount of finance company style unsecured lending through Harmoney is going to come unstuck with massive unemployment and a lot vehicle financing is going to be problematic too. We live in VERY interesting times !
Anyway, that's my 2 cents. I am not trying to talk it down and have learned not to be too dogmatic when it comes to expressing a negative opinion on a stock.
Disc: No holding, not short and don't want shares at a lower price either.
I completely forgot about harmoney lending....that maybe become a problem....not so sure about vehicle lending going bad but levels will be down for a while ..interesting times for sure