HMY - Harmoney Corp Limited

[nztx]

Forgive me I have done very little research on this as I am not especially interested but just out of morbid curiosity what is their NTA ?

Proforma 30 June 2020 figures from Prospectus easiest to find here:

(Prospectus page 106)

No Intangibles by looks on proforma Balance sheet

Total proforma Equity $ 75.285 million

Shares on issue: (Note 7 - page 167)

After IPO issue of 20.0 m new = 100.9 million

NTA & similarly Net Assets / share roughly looks like 74.61 cps on prospectus proforma figures @ 30/6/20

[winner69]

I saw somewhere in prospectus that IPO price is 3.5 times income

That applied to HGH would put them at $1.70 odd

Suppose that’s changed a bit now at a 230 share price .....suppose now about 2.1 times income

Much ‘cheaper’ than Heartland

[Beagle]

NTA & similarly Net Assets / share roughly looks like 74.61 cps on prospectus proforma figures @ 30/6/20

Thanks. So if we apply a typical NTA approach, (let's face it earnings metrics don't work because there is no reliable track record of same), that our friend Winner likes to use to financial assets it should be about 1.3 - 1.5 times NTA so maybe $1 is fair value (if one believes their business model is sound, which quite clearly I don't).

Any way you slice and dice this, it looks like there was a LOT OF HYPE that went into this IPO.

[Rawz]

CEO purchased 10,000 shares yesterday. Not a huge amount but a good sign?

[winner69]

CEO purchased 10,000 shares yesterday. Not a huge amount but a good sign?

He must have read the manual on what to do if your share price falls after an IPO ...... CEO must buy shares to show his confidence in the company

They say it always works ..... punters are often seduced by such things

Hope he reads the next section

[KJMLimited]

There's always hype in any IPO. MFB anyone. I see Tracey Jones also bought 10,000 shares post result. Mind you they both probably sold some shares via exercised options at IPO. Follow the smart money they say. The result itself was a very good quality one. The big 4 increased their warehouse facility in AU and in NZ a second $200m facility was established. Other things to like are a record low 90day + arrears, new loan originations are up 100% in the first two weeks of the new proprietary software in the 3rd quarter, 2nd Q on 1st Q new loan origination were up 207%, momentum has continued into the 3rd Q), loan originations were ahead of prospectus forecasts. It proves their business model is very sound. What's not to like?

[winner69]

There's always hype in any IPO. MFB anyone. I see Tracey Jones also bought 10,000 shares post result. Mind you they both probably sold some shares via exercised options at IPO. Follow the smart money they say. The result itself was a very good quality one. The big 4 increased their warehouse facility in AU and in NZ a second $200m facility was established. Other things to like are a record low 90day + arrears, new loan originations are up 100% in the first two weeks of the new proprietary software in the 3rd quarter, 2nd Q on 1st Q new loan origination were up 207%, momentum has continued into the 3rd Q), loan originations were ahead of prospectus forecasts. It proves their business model is very sound. What's not to like?

Tend to agree with you about their future ....should lead to solid performance going forward

A lot of the comments re awful financials pre IPO and lending unsecured to the down and outs is a recipe for disaster etc etc we’re probably unfounded and lacked objectivity

Hope they do well

Once lent through platform.

[Habits]

Heartland is a tiny bit player here, what about they take the aussies on at their own game and open for business on the west island. No need for physical branches, online banking and call centre

[Rawz]

Has Heartland said anywhere what their intention is with their stake? 8.5% by memory

They can sell 25% of it in June. $231m market cap * 0.085 * 0.25= $4.9m could be sold.
They can sell 25% again end of Dec.

Potential for a bit of selling pressure because I see no reason why they should have capital in Harmoney when it could be put to better use in highly profitable reverse mortgage business unit.

[KJMLimited]

The ROIC Heartland lends to Harmoney is unreal. Far better than reverse mortgages.