HGH - Heartland Group Holdings

[Beagle]

They obviously believe that Motor should be valued at higher multiples than a bank

Sum of the parts more than the whole seems to be in their thinking

They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !

[winner69]

They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !

Whatever ‘vehicle’ they use reflects that reflects a PE of 20 plus for Motor will be good

A demerger at least means you would own it ...until you sell,

[winner69]

They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !

From memory Harmoney was touted as being valued at 3.5 times income

Heartland on same multiple would be $1.70 to $2.00 on how you treat cash

[iceman]

They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !

But if the Marac business is that profitable (which I believe it is) and undervalued, why not just keep it and pay out the big dividends for years to come. That is my preference.

[Beagle]

But if the Marac business is that profitable (which I believe it is) and undervalued, why not just keep it and pay out the big dividends for years to come. That is my preference.

Agreed.
Actually, ever since they put a Beagle on their homepage the share price has been going great https://www.heartland.co.nz/
Imagine if they put a younger more attractive one on there or better still a whole litter of Beagle puppies instead
Think Dog's don't make a difference for business ? Think again ! https://www.scoop.co.nz/stories/CU0008/S00053.htm

[nztx]

Best to wait until the dust settles with HMY - the downwards spiral from NZ 3.75 IPO price has already seen SP shrink to NZ 3.17 at close today

[Peter Stewart]

I am not concerned about the reverse mortgage business at all. It has been showing great strength in Australia and I have no doubt it will do so again post COVID, in Australia at least. NZ seems much slower on the uptake.
We need to remain mindful of the fact that these numbers are for 4 months only and during a pandemic when large parts of the target market for this product, has been in lockdown or self imposed social isolation.
The RMs are mainly used for "nice to haves" such as housing upgrades, vehicle upgrades or travel, all of which require interactions with people outside of one's bubble. Clearly that has had negative effect on the RM business for obvious reasons, but in my view it is a temporary blip that will quickly return to normal once COVID is dealt with next year.

Not sure about Iceman's assessment of RMs in OZ - there are 3 new lenders in past 12 months, all with better pricing and access to third party distribution. Would need a revamp of Australian operations to get into the game

[LaserEyeKiwi]

Best to wait until the dust settles with HMY - the downwards spiral from NZ 3.75 IPO price has already seen SP shrink to NZ 3.17 at close today

At $3.17, Heartlands Harmoney stake is valued at $27 million. It's never going to be more than a tiny part of Heartland's valuation, but the initial revaluation could be a meaningful one time impact for next earnings report - depending of course on where the Harmoney share price settles at (like you point out).

[Sideshow Bob]

From the Business Desk Daily free email today:

Forsyth Barr analysts doubt Heartland's profit guidance

Forsyth Barr analysts are dubious about Heartland Group Holdings' ability to meet its full-year guidance, even though the company told the annual shareholders' meeting it is tracking ahead of expectations.
Heartland told the meeting net profit for the four months ended October was $29.9 million. If one assumed that represented an average monthly performance, the implied full-12 months result would be $89.7 million.
Read the full story at BusinessDesk — subscribe now

[King1212]

Forsyth crook...lol. that means the analyst saying the management is lying? Or misleading?