HGH - Heartland Group Holdings

[777]

You got your wish.

[Snoopy]

Industry Group Risk

From reference Note 12c, the greatest 'business group' risk in dollar terms is Agriculture, with $712.072m worth of assets. This represents:

$712.072m/ $3,718.710m = 19% of all loans

This is slightly up on FY2016, when agriculture was

$628.202m/ $3,461.292m = 18% of all loans

These figures are quite high and continue trending in the wrong direction for HY2017. Given that Heartland is nominally a specialist agricultural lender I wouldn't be too concerned. But if agricultural loans go above 20% of the total (or dairy representing about half the agricultural loans above 10%), then I would sound an alarm bell. How much compounding interest without any cash payments can Heartland take on the books? A 13% jump in the value of that rural portfolio in just 6 months is not insignificant. This situation will need careful watching when the FY2017 result details are released IMO.

Yes, no,... maybe. HBL have built up quite a substantial reverse equity loan book in Australia and N.Z. and its growing very fast. A lot of lending on hire purchase, (some have even referred to them with the distasteful reference of being a finance company "in drag") dairy presents as an ongoing commercial risk but certainly many of the Australian banks have larger exposure.

Let's keep Beagle's remark in perspective. Yes there are banks with larger exposure to agriculture in general and dairy in particular than Heartland when measured in dollar terms. But there is no listed bank in NZ with a higher exposure to dairy in portfolio percentage terms, and that is what really matters. This is no surprise because Heartland used to be thought of as a specialist rural lender. These days the heartland of New Zealand has a new meaning: Reverse mortgages in Remuera.

SNOOPY

[janner]

Ho Hummm.. Life gets tedious :-))

https://www.bing.com/videos/search?q...FB&FORM=VRDGAR

Next prediction please winner69 ..

[Joshuatree]

CHEATIN HEATLAND!
Hank Williams sr. / Your Cheatin`Heart. wmv

[HITMAN]

Happy to see it touching $2 today, Is it going to head back to $1.70 once we all put a bit more cash into this bank. Understand investors are happy to pay a premium now to get in on the action at $1.70.

[Beagle]

Let's keep Beagle's remark in perspective. Yes there are banks with larger exposure to agriculture in general and dairy in particular than Heartland when measured in dollar terms. But there is no listed bank in NZ with a higher exposure to dairy in portfolio percentage terms, and that is what really matters. This is no surprise because Heartland used to be thought of as a specialist rural lender. These days the heartland of New Zealand has a new meaning: Reverse mortgages in Remuera.

SNOOPY

Pretty sure you'll find Rabobank have a higher concentration of dairy loans.

[BlackPeter]

Lots of positive stuff here. Looks like everyone, well here on ST anyway, is taking up the rights issue.

Would there be any reason for not taking up the rights issue?

Funny you should ask ... I thought you put all your money into Bitcoins? Much more exciting ...

[Fatboyj]

Already mentioned, try to keep up. And not all of my money, for some misguided reasoning I went into MPG.

And hell yea this weekend has been a hoot BTC v BCH ding ding round 1 its been an exceptional exercise in watching FOMO, pump and dump, and whales eating sheep.

And since you've managed to work out how to log into your hotels wifi and post an off topic remark are you taking up the rights issue?

[BlackPeter]

For sure ... I guess at $2 they look like fair value ... but why not taking them at $1.70?

[Antipodean]

Hard to find good reasons not to take up new shares. HBL continue to meet / exceed their guidance so I will be participating to the full allowance.