HGH - Heartland Group Holdings

[Snoopy]

Snoops .....I don’t think we will ever see a share price of $1.48 in the foreseeable future

We are currently in a sweet spot for the finance industry. My valuation is a 'business cycle average'. In good times my rule of thumb is that at the peak of the business the share price will rise to approximately 20% above the average,

$1.48 x 1.2 = $1.78

That is pretty similar to todays trading price of $1.81

Happy?

SNOOPY

[winner69]

We are currently in a sweet spot for the finance industry. My valuation is a 'business cycle average'. In good times my rule of thumb is that at the peak of the business the share price will rise to approximately 20% above the average,

$1.48 x 1.2 = $1.78

That is pretty similar to todays trading price of $1.81

Happy?

SNOOPY

Ok ..but do banks follow the ‘business cycle’ ..they tend to have little catastrophes of their own along the way

[Snoopy]

Ok ..but do banks follow the ‘business cycle’ ..they tend to have little catastrophes of their own along the way

Some say the banks cause the business cycle Winner, by withdrawing finance when it is most needed ;-P! I guess in that context, Heartland qualifies as a 'leader' not a 'follower', But cause and effect are moot in this context, IMO. Banks have good and bad years: Generally more good years. But when bad years come, they can turn out 'really bad'. When you think about it:

1/ adding a series of figures, each representing a dividend paid in that year, THEN
2/ dividing that total by the number of years looked at...

gives a figure that is not dependent on the order the years that were added up. So rather than say 'this is over a business cycle', I perhaps should have said I am modelling a series of good and 'not quite so good' years.

I have just done an exercise checking out returns over the '30th September to 30th September' year. Why those dates? Because it gives time for the June 30th end of year result to be declared and digested by the market.

Share Price	Sept 30th 2015	Sept 30th 2016	Sept 30th 2017
Heartland Bank	$1.12	$1.51	$1.80

Income Received	Sale of Rights	Final Dividend (previous year)	Interim Dividend
FY2016		4.5cps	3.5cps
FY2017		5.0cps	3.5cps
FY2018	2.13cps	5.5cps	3.5cps

Notes:

1/ Income received in italics not earned in period following 30th September under consideration.
2/ 7th December 2017 was when a 1:15 rights offer at $1.70 issue closed. Those shares not taken up were sold to institutions at $2.02 creating a profit for each right held by the the rights holders of: 32/15 = 2.13c

Overall Share Growth 30/09/2015 to 30/09/2016

$1.12 (1+g) = ($1.51 + ($0.035 + $0.05) ) => g = 42%

Overall Share Growth 30/09/2016 to 30/09/2017

$1.595 (1+g) = ($1.80 + ($0.035 + $0.055) ) => g = 19%

Those are pretty impressive growth figures. No wonder you shareholders are smiling!

SNOOPY

[blockhead]

I know Heartland has a Motor Vehicle lending portfolio so I went to their website to see what is involved in borrowing to buy a car, never found a reference to motor vehicle finance as such. Whilst pondering that I listed a car on Trademe for sale and before too long I received a call from a call centre in Akl to see if I would attach a "Finance available" banner to my car for sale on Trademe. The finance would be arranged through 9yards Finance in ChCh. I had never heard of this company so did a bit of research and discovered a good part of the finance they arrange is done through Heartland.
Anyone else aware of this link ?

Needless to say I now have my car listed for sale with finance available from 9yards Finance, aka Heartland !!

[Joshuatree]

Excellent, thanks for that info blockhead.Now why is Heartland not upfront and promoting this more?

[777]

I know Heartland has a Motor Vehicle lending portfolio so I went to their website to see what is involved in borrowing to buy a car, never found a reference to motor vehicle finance as such. Whilst pondering that I listed a car on Trademe for sale and before too long I received a call from a call centre in Akl to see if I would attach a "Finance available" banner to my car for sale on Trademe. The finance would be arranged through 9yards Finance in ChCh. I had never heard of this company so did a bit of research and discovered a good part of the finance they arrange is done through Heartland.
Anyone else aware of this link ?

Needless to say I now have my car listed for sale with finance available from 9yards Finance, aka Heartland !!

I trust you will get a commission if they take up the finance.?

[Investor]

Excellent, thanks for that info blockhead.Now why is Heartland not upfront and promoting this more?

From what has been said in this topic, they probably just supply funding to the others who are marketing such finance.

[ScrappyO]

My car loan was through Marac but the payments go to heartland bank.

[blockhead]

I trust you will get a commission if they take up the finance.?

I did make such an arrangement (;

[Beagle]

Just a little bit of anecdotal market evidence. Heard a whisper BNZ want to get more business in the asset finance area and try and eat some of UDC's lunch.
Thought nothing of it but today noticed an advertisement from Asset Finance a division of BNZ bank offering to finance fixed assets from no deposit and from 7.95% using the (Vehicle or plant and equipment as sole security). Not sure how that compares to Marac's rates but I would think the BNZ are using a pretty sharp pencil with their deals at present.

Interesting times with no resolution yet for ANZ bank with UDC.