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  1. #12171
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    Quote Originally Posted by blockhead View Post
    Blocky has just ticked the box for DRP, even after the spanking I took last year when I seem to remember the price was a little north of $2. Surely come out on the winning horse this time ??
    Did not take them up on their first DRP. Have done so on all subsequent dividends.

    " As Albert Einstein once said, “the most powerful force in the universe is compound interest.” The power of compounding is amplified, not reduced, by rising rates."

    I think he was right :-)))

  2. #12172
    On the doghouse
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    Quote Originally Posted by Snoopy View Post
    Plugging in a representative yield of 7.5%, one that IMO represents an appropriate risk for the ups and downs of the banking cycle of Heartland in its current form, we can now arrive at our 'Capitalised Dividend Model' valuation

    (Representative Dividend per Share) / (Acceptable Gross Yield) = Share Price (an algebraic manipulation of: Dividend per Share / Share Price = Yield )

    8.2c / (0.72 x 0.075) = $1.52

    A reminder here that NTA was

    ($654.150m - $73.085m) / 565.430m = $1.03 cps

    at the half year FY2019 balance date. This means my fair valuation is at a good premium (+48%) to asset value.

    This $1.52 valuation is measured at the average point in the business cycle. My rule of thumb is that over the business cycle the actual share price will fluctuate between 80% and 120% of capitalised dividend fair value. This gives a target range of $1.22 to $1.82.
    Quote Originally Posted by blockhead View Post
    Blocky has just ticked the box for DRP, even after the spanking I took last year when I seem to remember the price was a little north of $2. Surely come out on the winning horse this time ??
    I am with you Blocky, and with a few others by the sound of things. My reasoning is a little different though. I want to accumulate more Heartland shares. But I don't want to pay too much for them. If I can pick up some more shares in the DRP for around $1.52 or less - and save some brokerage - I will do so. However, if the likely DRP share price rises above that figure I will cancel my participation in the plan. I don't care what the trend is doing. I am after value, pure and simple.

    I reckon hoping for a share price a little north of $2 (almost twice asset backing) is backing an outsider.

    SNOOPY
    Last edited by Snoopy; 14-03-2019 at 12:00 PM.
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  3. #12173
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    Happy lying in my hotel here in hong kong knowing my divy is paying for my holiday.....should be in china but they classed me as an undesirable alien and wouldnt let me stay even tho honk kong is governed by china...go figure

  4. #12174
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    Quote Originally Posted by oldtech View Post
    NZX chart appears to be badly wrong for some bizarre reason ... 30 day SP shown as moving between 2.312 and 2.718!

    Not too sure quite what they're smoking ...
    Glad to see I'm not imagining things ...

    https://www.nzx.com/announcements/331945

  5. #12175
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    Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

    With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6% (8.333 gross)
    Last edited by SCOTTY; 15-03-2019 at 08:03 AM.
    SCOTTY

  6. #12176
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    Quote Originally Posted by SCOTTY View Post
    Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

    With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6%
    Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.

  7. #12177
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    Quote Originally Posted by oldtech View Post
    Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.
    I also don't recall it being that high either, if it was trading at $2.71, it must have been some time back, as I first brought in at $1.75 May 2018.

  8. #12178
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by SCOTTY View Post
    Interesting. The NZX has managed to transpose the historical HBL financials onto the new HGH data.

    With the market now fully informed I would be very surprised if there is not a substantial SP improvement. ie At $1.50 the net yield is 6% (8.333 gross)
    8.33% Gross is an awesome yield and there's a perfectly reasonable expectation dividends will grow over the years ahead.

    Quote Originally Posted by oldtech View Post
    Don't know that it was historical data, I don't remember HBL ever trading as high as $2.718 although I will admit I have only followed it for three and a half years.
    The highest HBL ever traded at was $2.14.
    Last edited by Beagle; 15-03-2019 at 08:28 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  9. #12179
    percy
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    AU $ 50mil medium term note issue should help fund a good few more Aussie RELs.

  10. #12180
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    Quote Originally Posted by percy View Post
    AU $ 50mil medium term note issue should help fund a good few more Aussie RELs.

    Keep safe down there Percy.....pray for Christchurch

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