sharetrader
  1. #10581
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    Quote Originally Posted by percy View Post
    Forget the noise and work out your current dividend yield on your average HBL cost price,.
    Then it is easy to see who the cunning one is.!!
    No wonder you sleep well.

    ps.Should you think the dividend will not be increased sell.
    Should you think HBL have the capacity to keep increasing their fully imputated divie,sit back and enjoy it.I am..lol.
    Like you Percy I’m obviously not cunning but very happy. The bulk of my HBL were purchased @ 58c and with the drip obviously my average price is now considerably lower. I certainly don’t have any tax liability by constantly buying and selling either. Boring I know
    SCOTTY

  2. #10582
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  3. #10583
    Outside thinking.
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    Quote Originally Posted by greater fool View Post

    Disc: former HBL holder. Jumped recently.
    Did you buy ALF instead?

  4. #10584
    percy
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    Quote Originally Posted by greater fool View Post
    You got me.

    I accept that it makes a grand headline, but if you look a little deeper, you see that while
    finance receivables have risen by the numbers you've supplied, NIM is shrinking.
    Working harder to to have earnings stand still, is no earnings growth.

    Further to the "acquire PGW story"; for another $20m you could expand your customer base by
    folding ALF into 'Heartland Rural' and have an excellent starting point to build a decent rural
    services group. It could attract significant investor interest because it is exactly to kind of listed
    rural focused opportunity that has been lacking in NZ. Done well it might just eat UDC's lunch
    in rural financing and services.

    Disc: former HBL holder. Jumped recently.
    The MIM is still over twice the sector average.
    This very slight reduction in MIM is caused by product mix.The margin on RELs ,although a lot higher than standard mortgages,is lower than the likes of motor vehicle loans.HBL has seen its Australian REL business grow an incredible 27%.Great business for HBL.
    .

  5. #10585
    Speedy Az winner69's Avatar
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    Quote Originally Posted by percy View Post
    The MIM is still over twice the sector average.
    This very slight reduction in MIM is caused by product mix.The margin on RELs ,although a lot higher than standard mortgages,is lower than the likes of motor vehicle loans.HBL has seen its Australian REL business grow an incredible 27%.Great business for HBL.u
    .
    One of the advantages of Heartland masquerading as a Bank is they compare their NIM to a sector average which predominately comprises the big hour.

    Interestingly Heartlands NIM is significantly less than that achieved by non-bank financial institutions (KPMG say 5.68% in 2016).

    Some would say that this a better ‘benchmark’ as their lending profile mirrors more a non-bank financial institution (like UDC etc) rather than comparing to banks with their large % of home mortgages.

    Heartland NIM lower than UDC’s last time I looked (and MTF as well)

    Just saying
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  6. #10586
    percy
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    Quote Originally Posted by winner69 View Post
    One of the advantages of Heartland masquerading as a Bank is they compare their NIM to a sector average which predominately comprises the big hour.

    Interestingly Heartlands NIM is significantly less than that achieved by non-bank financial institutions (KPMG say 5.68% in 2016).

    Some would say that this a better ‘benchmark’ as their lending profile mirrors more a non-bank financial institution (like UDC etc) rather than comparing to banks with their large % of home mortgages.

    Heartland NIM lower than UDC’s last time I looked (and MTF as well)

    Just saying
    Yes buying UDC would improve HBL's MIM.!!..Bring it on.TRA appear to have a good working arrangement,as well as a blocking stake in MTF.
    I think you have a good point about comparing HBL's MIM to finance company's,then again that would be wrong, because they are a registered bank.
    Maybe somewhere between the two ?
    In which case HBL's MIM is closer to finance companies than banks.
    All is well !..lol.

  7. #10587
    Speedy Az winner69's Avatar
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    They love this chart eh Percy

    Probably goes a little way to justifying the ongoing issuing of milions of performance rights to senior management (ie free shares sometimes)
    Attached Images Attached Images
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  8. #10588
    percy
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    Yes I think I and all shareholders love that chart.

    Please don't start another one of your rants.
    Last edited by percy; 17-03-2018 at 02:39 PM.

  9. #10589
    Speedy Az winner69's Avatar
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    Quote Originally Posted by percy View Post
    Yes I think I and all shareholders love that chart.

    Please don't start another one of your rants.
    I’ll leave that subject to Paper Tiger to do a rant on.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  10. #10590
    percy
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    Quote Originally Posted by winner69 View Post
    I’ll leave that subject to Paper Tiger to do a rant on.
    Sound judgement.
    Leave him to his Rajang rant free cruise.?
    Last edited by percy; 17-03-2018 at 03:37 PM.

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