HGH - Heartland Group Holdings

[horus1]

Thanks , i have a lot ,and this is great info

[Fred_Rubble]

Much appreciated for the info percy!

[Southern_Belle]

Great job Percy.....much appreciated

[percy]

Thanks for the update percy. Did any in the audience say thank you for doing such a great job and how much they appreciate the reversal of the SP recently, alongwith the sustained divi's and DRP with a discount. HGH are looking after their investors, it would be nice to know HGH know that, and that the investors appreciate it. Sorry I couldn't attend.

Jeff Greensade did say he felt the market had become used them raising capital,and the sp was weak as another capital raise had been expected.
The new company structure meant they had other sources of capital.Under the old struture they had too much capital when they raised it,and then ran out of capital.
The presentation has become an annual event hosted by Hobson Wealth.Hobson Wealth did thank the presenters for keeping us all fully imformed ,and that we were all pleased to see the recovery of the share price,and the bright future outlook .
I think it would be fair to say most of the attendees have been HGH shareholders for a good number of years,and remain very pleased with their investment.

[iceman]

Thanks for the great summary Percy. Much appreciated

[CD_CHCH]

My thanks as well Percy. Heartland is one of the first companies I took a gamble on when dipping my toe into the sharemarket. I wish all my choices could have been as profitable as this one.

[Jay]

Good summary Percy, thank you.

Have not thought about this question too much, but with this 1/3, 1/3, 1/3 etc at no interest, how is Heartland making money on it, do the dealers pay a fee/interest or a certain % don't come up with the next instalment in 12 months and so effectively borrow again pay interest??
A few years ago we were looking at upgrading our vehicle (had the funds, but not available at the time) and Holden were offering (thru Heartland) no payments for 3 months, however, looking into it further, interest was still payable even if you paid it off at or just before the 3 month period ended.
P.S. Did not buy then and not a Holden either.

[percy]

Good summary Percy, thank you.

Have not thought about this question too much, but with this 1/3, 1/3, 1/3 etc at no interest, how is Heartland making money on it, do the dealers pay a fee/interest or a certain % don't come up with the next instalment in 12 months and so effectively borrow again pay interest??
A few years ago we were looking at upgrading our vehicle (had the funds, but not available at the time) and Holden were offering (thru Heartland) no payments for 3 months, however, looking into it further, interest was still payable even if you paid it off at or just before the 3 month period ended.
P.S. Did not buy then and not a Holden either.

Always the retailer ie Holden or Harvey Norman pays the interest.
ie No interest for so many years the retailer pays. I comes off their retail margin.

[whatsup]

Always the retailer ie Holden or Harvey Norman pay.
ie No interest for so many years the retailer pays. I comes off their retail margin.

I enjoyed a great deal with my last Holden ( run out ) purchase , 1/3,1/3,1/3 of the purchase price per year, 0% interest and was able to claim the GST in year 1 as it was a business car, will do again if available !

[Beagle]

Thanks for sharing about the presentation Percy.
My local Holden dealer told me a few weeks ago they did huge business over summer with the zero deposit, nothing to pay for 3 months and then 4.95% interest for 48 months deal. People had to pay retail price of course but they really went berserk over this deal he told me and he's done massive business. As we've discussed before the vast majority trade a vehicle in so there's usually a reasonable deposit paid via the trade in.

Been a great run since the low $1.30's including the dividend and now we're in the late $1.60's that suggests a FY19 PE of ~ 13 my sense is this is about fair value and a good hold for yield and eps growth in FY20. SP gains from here will require patience in my opinion. Gross forecast yield for FY20 assuming 9.5 cps in dividends = 7.85% at $1.68. Nothing wrong with that and we should see mid- late single digit eps growth next year too.