HGH - Heartland Group Holdings

[Beagle]

o Increased costs associated with investment in: • Awareness for O4B and reverse mortgages in both Australia and New Zealand. • Capacity and processing volume to meet growing demand and opportunities in core strategic areas. • Finance and Compliance reflecting increased regulatory complexity and heightened and demands.

o Many of these costs are accelerated or one-off and will generate asset growth and income in ensuing years.

o Accordingly, we expect the cost to income ratio increase to 41.9%, before reverting to its current trajectory.

o Heartland expects net profit after tax for the year ending 30 June 2020 to be in the range of $77 million to $80 million.

[winner69]

The last capital raise (rights issue) December 17 was at $1.70 ....Hmmmm

Wonder how much they’ll ask for it will be when the next inevitable cap raise is announced

[percy]

The last capital raise (rights issue) December 17 was at $1.70 ....Hmmmm

Wonder how much they’ll ask for it will be when the next inevitable cap raise is announced

Most probably $2.50.

[iceman]

The AGM now to be held in Christchurch on 12 November. I assume Percy had a quiet word with Jeff

[winner69]

The AGM now to be held in Christchurch on 12 November. I assume Percy had a quiet word with Jeff

Cup day at Addington ...hmmm

[Beagle]

Most probably $2.50.

LOL..good to start the week with some outrageous optimism.

[percy]

Realism.
Page 26 on HGH's annual result presentation,Capital, makes for interesting reading.
I take it any further call on shareholders for more capital is sometime away.
Right.
We know HGH are "going hard" this year for the many opportunities avaliable to them
Therefore, knowing HGH are successful of taking full advantage of any opportunity they are given.we must look forward to this time next year,when they alert the market to their 2021 profit projections.
Then the following interim, will advise growth has been so outstanding HGH will require further capital,and Jeff will upgrade full year's projections.
Then shareholders will shout "Bingo,Full House",and some will all look back and think ,"goodness I could have brought more HGH shares 85 cents less 18 months ago."!!

[Beagle]

My work on the weekend showed they had grown eps over the previous 4 years and forecast over the next year (total 5 years) 31.7%. I looked back at the share price 5 years ago and it has grown in line with earnings growth. As long as we don't get another GFC Mk2 my modelling has them taking another 4 years (sometime in 2023) to get back to the previous high of $2.14. That's fine and I am happy to continue to hold a modest position for what is realistically going to be most likely to be about 5-6% per annum share price appreciation on average, over the years ahead. That and an 8.6% gross divvy is all that's required for me to hold. I'd rather have more realistic expectations and then be pleasantly surprised than the other way around. Time will tell.

[winner69]

In the past Heartland usually rave on (in favourable terms) about their Equity Ratio

No mention this time around

With assets up 10% and shareholder equity a fraction up on last year the Equity Ratio must be quite a bit lower

Heartland has become more leveraged

[RTM]

My work on the weekend showed they had grown eps over the previous 4 years and forecast over the next year (total 5 years) 31.7%. I looked back at the share price 5 years ago and it has grown in line with earnings growth. As long as we don't get another GFC Mk2 my modelling has them taking another 4 years (sometime in 2023) to get back to the previous high of $2.14. That's fine and I am happy to continue to hold a modest position for what is realistically going to be most likely to be about 5-6% per annum share price appreciation on average, over the years ahead. That and an 8.6% gross divvy is all that's required for me to hold. I'd rather have more realistic expectations and then be pleasantly surprised than the other way around. Time will tell.

Wow Beagle.....you have described my perfect investment. Gives me some comfort for my oversized holding...10% of my portfolio.
Thanks !