Yes, that is what I meant to say, but somehow I got lost on route.
Again yes, and I was not disputing that, but the conflating of two unrelated items: capitalised income and total profit.
Printable View
Well SL - if they book the interest charges on the Reverse Jobs .. it gets added to outstanding loan balances
and likely also booked as Revenue .. That said and done the interest revenue isn't going to be seen for
some time - likely when someone kicks the bucket, pays up early or the property is sold over which HGH
hold reverse Loan Security.
So it is quite correct to look on this as Interest on Reverse jobs is non cash for some time
The principle lent out & interest accumulating wont be seen for some time, but need to be
financed from somewhere. Any dividends and tax paid while accumulating interest is being added
on RV's may well be another thing and need also to be found.
Reverse Mortgages are pretty Capital Hungry due to the at times lengthy period they need to be carried
with little or nothing coming in off them back to HGH, until that repayment event happens
It's quite valid to look at the non Cash effects of these within the HGH Camp as the money
to carry them has to come from somewhere, if not coming from cash generated via banking profits :)
OK. Time to put a stop to the nonsense.
Heartlands Reverse Mortgage portfolio IS cash flow positive.
As in maintaining the size of the loan book is generating free cash flow.
Expanding the book is a separate matter.
" I recently significantly reduced my holding in HGH as I am not very happy with the culture there. "
Most ardent fan of HGH has lost faith in the company culture ...slowly people are coming around my original view that the company who dont bother about small investors is not worth holding ...But I got lots of flak from die hard fans here ....
Still waiting for " Many Golden Crosses to come in future " as promised by our good mate ...:p
Not me Rawz
But my adoration of Jeff and his team is waning ….the halo is losing its shine …fast ……and Heartland doesn’t seem to be the Heartland it once was
Be a bad day if we ever had to say ‘Heartland didn’t do what they said they would do’ ….might not be far off
The ‘halo effect’ in business is an interesting concept. Might pull out my copy of “The Halo Effect: . . . and the Eight Other Business Delusions That Deceive Managers” and sit out in the sun (fogs lifting) and give it another read.