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  1. #10981
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by Bobdn View Post
    I got back in at 1.77 a few weeks back. I sold awhile back at 1.50 odd and used the proceeds to buy AIR at 2.19 to get that monster dividend. Still have that Air holding.

    All a bit swings and round about. Worked out ok overall (at this stage
    Ahhhh yesss...was a while ago but I remember that monster 35 cent dividend feed rather fondly...they say Beagles have a liking for monster glutinous feeds and they're not wrong lol...always living in hope of "nothing sweeter than a repeater"
    Last edited by Beagle; 18-07-2018 at 04:00 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
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  2. #10982
    Speedy Az winner69's Avatar
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    Whole Milk Powder up in overnight auction

    That’s good
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  3. #10983
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    Quote Originally Posted by Beagle View Post
    Shouldn't look a gift horse in the mouth...so they say.... so I didn't, I topped up some more at $1.71.
    Interesting, and thanks for sharing. I must admit, I've been watching the chart since February and wondering whether to sell while it's dropping, hoping to buy back in. Only thing is, usually when I do that it's far too late and the SP immediately rockets skywards.

    I am ashamed to admit, I don't have a stop loss set for this share. Still in the green though

  4. #10984
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    [QUOTE=oldtech;721813

    I am ashamed to admit, I don't have a stop loss set for this share. Still in the green though [/QUOTE]

    Why be ashamed ???.. Regrets you will have many... As we all do.... My HBL shares are WELL into the green.

    As are more than a few others who have placed this one into the bottom drawer.

    DYOR. :-)))

  5. #10985
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    anyone cares to share why the sp tumble from high $2.14? Sorry, I have not been following it the last couple months.

  6. #10986
    Speedy Az winner69's Avatar
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    Quote Originally Posted by King1212 View Post
    anyone cares to share why the sp tumble from high $2.14? Sorry, I have not been following it the last couple months.
    The share price just got too far ahead of itself and has drifted (not really tumbled) back to a more reasonable price (more reasonable valuation multiples)

    There was a suggestion hbl got caught up in the relating down of Oz banks ..maybe so but most Oz banks have recovered a bit but hbl not followed suit

    Nothing to do with hbl performance ...that’s still going gangbusters
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  7. #10987
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    Quote Originally Posted by winner69 View Post
    The share price just got too far ahead of itself and has drifted (not really tumbled) back to a more reasonable price (more reasonable valuation multiples)

    There was a suggestion hbl got caught up in the relating down of Oz banks ..maybe so but most Oz banks have recovered a bit but hbl not followed suit

    Nothing to do with hbl performance ...that’s still going gangbusters
    I do wonder if it's the udc uncertainty.....if heartland does a deal there will be a cash raising and if floated people will want to swap some of heartland to udc...outcome can't be far away

  8. #10988
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    Quote Originally Posted by ziggy415 View Post
    I do wonder if it's the udc uncertainty.....if heartland does a deal there will be a cash raising and if floated people will want to swap some of heartland to udc...outcome can't be far away
    2nd thoughts maybe turners will be affected more than heartland if udc floats....same sort of area maybe...and turners seem to be doing ok

  9. #10989
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    Quote Originally Posted by winner69 View Post
    The share price just got too far ahead of itself and has drifted (not really tumbled) back to a more reasonable price (more reasonable valuation multiples)

    There was a suggestion hbl got caught up in the relating down of Oz banks ..maybe so but most Oz banks have recovered a bit but hbl not followed suit

    Nothing to do with hbl performance ...that’s still going gangbusters



    Thanks winner!! what do u think is the reasonable price??

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    Default BC1/ Tier 1 and Tier 2 Lending Ratios FY2017

    Quote Originally Posted by Snoopy View Post
    The promised capital note issue never happened. So once again this calculation is straightforward with all 'Tier 1 and Tier 2 capital' being shareholder equity.

    Total Heartland Equity at balance date was $498.341m,

    Total Heartland liabilities at balance date were $3,048.840m

    So: Equity / Total Liabilities
    = $498.341m / $3,048.840m = 16.3% < 17% (*)

    Result: FAIL TEST

    Note that I have changed my equity target for Heartland to the 17% equity (down from my 20% target) that Heartland had when Governor Wheeler originally approved Heartland as a bank. I had previously used 20% as the figure appropriate for a more marginal finance company without a strong history. Even so, Heartland has did not have the amount of equity on the books to support a loan book of the current size in my judgement. However the December 2016 equity raising has no doubt addressed this issue for now.

    The historical picture of this ratio is tabulated below.

    FY2012 FY2013 FY2014 FY2015 FY2016 Target
    Total Tier Capital/ Loan Book 19.3% 17.7% 17.6% 16.6% 16.4% >17%
    In April 2017, Heartland had a subordinated capital note issue of $A20m. Approximately 72% of the face value of the Notes will be recognised as Tier 2 Capital by our banking regulators. So we must add the 'Tier 1 capital' (being shareholder equity) to 72% of the 'Tier 2 capital' to obtain the total recognised 'tier' capital for liquidity purposes

    Total Heartland Equity at balance date was $569.595m , PLUS
    Tier 2 capital as apportioned $14.975m EQUALS
    Total Tier Capital $584.570m

    Total Heartland liabilities at balance date were $3,465.076m

    So: Equity / Total Liabilities
    = $584.570m / $3,465.076m = 16.9% < 17% (*)

    Result: PASS TEST

    I have been a little generous in 'passing' Heartland here, because I am not convinced that using 'only' 72% of the Tier 2 capital is justified (if 100% of Tier 2 capital was used the 17% pass figure would be achieved). I have also included 'intangible assets' as equity. This is because a financial institution is 'punished' for spending on having up to date computer software (software is an intangible asset), when I see up to date software as a really good idea in keeping track of troublesome loans. Nevertheless, whether you agree with my reasoning or not, no one can dispute that Heartland was in a better loan security position at EOFY2017, than at the end of the previous two financial years.

    {Note that I have changed my equity target for Heartland to the 17% equity (down from my 20% target) that Heartland had when Governor Wheeler originally approved Heartland as a bank. I had previously used 20% as the figure appropriate for a more marginal finance company without a strong history.}

    The historical picture of this ratio is tabulated below.

    FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Target
    Total Tier Capital/ Loan Book 19.3% 17.7% 17.6% 16.6% 16.4% 16.9% >17%

    SNOOPY
    Last edited by Snoopy; 16-10-2018 at 09:10 AM.
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