HGH - Heartland Group Holdings

[bull....]

The financial services industry today faces a great deal of change: this includes future policy settings, shifts in regulation, and material impacts on business distribution models," chief executive Michael Cameron said

http://www.thebull.com.au/articles/a/80162-suncorp-ups-post-hayne-investment-by-$50m.html

was what suncorp were saying yesyerday said there reg cost have increased 50m

i own a very small parcel long time waiting to see results before i consider what to do

[oldtech]

Thanks for the question oldtech. The 8.333c is a representative dividend figure with tax paid. If you go down to a bank and put money in a term deposit the rate they quote to you will be before tax is paid. So to get a better 'like with like' comparison I prefer to look at dividends before tax is paid. The company tax rate in New Zealand is 28%. That means you keep 72% of your return and the government keeps 28% (28% + 72% = 100%). The factor '0.72' in the denominator of my calculation is therefore the factor I am using to convert my annual indicative dividend figure of 8.333c to the 'before tax dividend figure' of.

8.333c / 0.72 = 11.57c (note 11.57c x 0.72 = 8.333c)

The technical term for 'before tax dividend' is the 'gross dividend'. The after tax dividend figure of 8.333c is normally termed the 'net dividend'.

HTH

SNOOPY

Ahh, I get it! Thanks Snoopy!

[beetills]

I read where some people are concerned with HGH exposure to the Aus property market.
My only concern would be if the borrowers live to long.The % of the loans taken out compared to valueation is small which indictes to me that the market would have to collapse over 60%.
No expert so could be totally incorrect.

[Beagle]

Talked to a Sydney based fundie 2 days ago who cut their position in HGH last year.

Two reasons - they have enough problems with their own banking exposure without taking on any in NZ but they are also very concerned about HGH's exposure to the Oz property market.

https://www.smh.com.au/money/investi...14-p50xpc.html

Let's hope HGH make a real effort to explain their exposure and sensitivity to that market - in simple terms and in plain English!

Otherwise, there will be only Kiwis left in this stock as the Ozzies continue to sell down and out.

Pretty conservative lending limits on REL have been well explained before but another refresher probably wouldn't hurt given recent declines in the Australian market.
I'm more concerned about their unsecured lending through Harmoney as the delinquent loan rate there can be very high.

[Balance]

Pretty conservative lending limits on REL have been well explained before but another refresher probably wouldn't hurt given recent declines in the Australian market.
I'm more concerned about their unsecured lending through Harmoney as the delinquent loan rate there can be very high.

Agree with you but HGH should explain in simple terms how exposed they are to falling property prices - takes away any concerns.

[percy]

Agree with you but HGH should explain in simple terms how exposed they are to falling property prices - takes away any concerns.

More than fully explained in HGH's 19th November "Heartland Investor Day Presentation."

[Beagle]

More than fully explained in HGH's 19th November "Heartland Investor Day Presentation."

http://nzx-prod-s7fsd7f98s.s3-websit...018/290747.pdf

[Balance]

http://nzx-prod-s7fsd7f98s.s3-websit...018/290747.pdf

I read it and it's clear as mud - especially from pages 34 onwards.

[Beagle]

I read it and it's clear as mud - especially from pages 34 onwards.

You're a bright guy mate. I am sure you can wrap your head around this and the risks. Let me frame it up another way. Its off the charts safer than lending unsecured through Harmoney for some overseas trip that some punters can't be bothered saving for or consolidating lots of other unsecured loans they have...

[Balance]

You're a bright guy mate. I am sure you can wrap your head around this and the risks. Let me frame it up another way. Its off the charts safer than lending unsecured through Harmoney for some overseas trip that some punters can't be bothered saving for or consolidating lots of other unsecured loans they have...

Of course it is.

That's why all the other players decided to get out of it and leave HGH to become the leading player!

I recall CDOs were safe as houses too!

HGH shareholder so I am just trying to point HGH management to answer the concerns simplistically - at what level of property value drops does HGH have to pump in more supporting capital on its balance sheet, and its securities need write-offs.