Interestingly according to ANZ securities at $1.51 Heartland trading on a FY16 PE multiple of 13.97 times EPS of 10.81.
11.1 x 10.81 = only $1.20. Hmmmmm
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Very funny.At least your record of being 100% wrong on this thread remains intact...lol.
The reality is the market values growth.
Especially organic growth.
Look for UDC staff looking for jobs at Heartland Bank,
And I would expect a great number of UDC's clients will follow them.
I would not deposit or lend money to a Chinese outfit.Would you?
BuyBuy Buy HBL.NZ's only listed bank,showing sustainable growth.!!
I think Heartland will have to get their bond issue under way pretty smartly to fund the UDC clients moving over to them.
I have a lot of heartland. They are a bank not a finance co and without ANZ as an implied gaurantor cannot have as good a PE as Heartland. Therefore I would say Heartland are undervalued. I will pick up more in the SPP.
I reckon less than 10% would know in due course about the change and of those probably only 10% would care, so maybe 1 in 100 would switch. Their finance deal will probably remain the same so genuine question, why should or would they care ? Plenty of cheap Chinese money sloshing around, maybe their rates get more competitive and they steal market share from Heartland ? If you'd just invested $660m mate wouldn't you be looking to grow the business ?
You're probably correct in that many won't care who's financing them but they'll certainly know about it - regulations and all that!Quote:
I reckon less than 10% would know in due course about the change
Yes as you suggest they'll have to write to all their customers to inform them of the change and probably 90% of those will throw the letter in the bin as soon as they read the highlighted bit right at the top that nothing changes about their financing arrangements. The vast majority of the other 10% that stop to have something of a think about it won't care either for the same reason.
Of course the new owners will dress the change up highlighting new opportunities for existing customers like perhaps expanded credit lines...as mentioned above, nobody invests $660m and doesn't try and grow the business.