Did I read somewhere that even TSB were interested??
At this rate of interest, we could have Flexigroup come out and do what they did to F & P Finance :t_up:
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Did I read somewhere that even TSB were interested??
At this rate of interest, we could have Flexigroup come out and do what they did to F & P Finance :t_up:
My mate cam with good news
@ANZ_cambagrie: Global dairy trade prices up 3.8%. Whole milk powder up 7.5%. A nice bounce but nzdusd at 0.70.
Expect another boost to heartland share price, their strategy of hoping that potential problems will just go away is working
Percy, your $855m
Guru analysts often use price book ratio to value banks (read your Craigs report)
UDC at $855m is 2.3 times book value
Same multiple for heartland makes them worth $1.1 billion
Share price then $2.40
As you say mate no matter what happens Heartland wins - even if it just a rerating when the market unlocks the intrinsic value embedded in heartland
Maybe not $2.40 but that $1.60 by xmas looks a cert now
Fonterra's pay-out is still well below the level needed for dairy farmers with over 50% gearing to get anywhere near break even. Most independent experts say we need $5.30 a Kg for breakeven for the average dairy famer, much more for those with, (by my calculations), 70% gearing which is approximately where HBL's average loan stands based on today's land and herd values (taking into account steep falls over the last year).
Banks are a very long way from being out of the woods with their dairy loans.
All gloom and dismay over on the Harmoney thread
Dodgy loans, writeoffs, Harmoney not vettingbthings thatvwell, fraud and all sort of stuff.
Those punters just don't get it - all part and parcel of being a lender
They also don't realise they don't really matter - Harmoney just a shop front for Hesrtland and others.
Heartland with their $50m plus (wonder how much it is now) of lending through Harmoney must be creaming it - average RAR of at least 13% they say
And i wonder what Heartlands share of Harmoney is going to be worth when they float - heaps
Wonder if Heartland management are working out why the Seniors acquisition hasn't been EPS accretive?
But then again EPS accretive is a warm fuzzy term that post acquisition seems to be forgotten anyway.
http://www.stuff.co.nz/business/7932...ortgage-scheme
Could affect HBL... although I doubt the government would do it...
As always, thoughts appreciated