Jarden re Heartland Group, Well positioned for strong self-funded growth. Last $1.88, Target Price $2.34
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Jarden re Heartland Group, Well positioned for strong self-funded growth. Last $1.88, Target Price $2.34
I wonder when Forbarr's next update will come? I have been at bit wary of Forbarr research, largely because they tend to come out in favour of all sorts of Dunedin based investment concerns that generally underperform. But the apparent misreading of the prospects of Heartland have certainly been a boon to Heartland shareholders who used the Covid shock to top up. Whereas the Forbarr research has been doubtful in the past, it does appear their research is now a strong countercyclical indicator. If research is almost guaranteed to be wrong, then that becomes very useful information for savvy investors. I think their research team deserves a pay rise to reflect their increased usefulness.
Jarden seems a bit all over the place of late, where last years pariahs become this years favourites. That isn't as silly as it sounds because overvaluation of previous favourites can indeed disqualify them as current investment prospects. Does 'strong self funded growth' mean that they don't see Heartland returning to paying dividends any time soon? If the asset base is not increasing and profits are, then that implies strongly increasing margins. That doesn't seem likely, which is why I am dubious about that $2.34 forecast. However, if dividend payments stop, maybe such a figure is on the cards?
SNOOPY
discl: Holding HGH at an average purchase price of $1.30 and not looking to increase that holding at current prices.
Snoopy, Generally 1/2 days after Result day. I will advise their revised Guidance.
I like the "self-funding" bit. Not sure what they mean by that. Maybe Jeff has gone himself to find the lenders/bond holders ? Certainly not self funded from own generated cash flows, which is not surprising given their huge growth, particularly in Australian reverse mortgages.
Deleted ...reposted with target price in bold