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08-01-2020, 09:28 PM
#12871
What!!!!sell...sell...sell..... anyway that was 2019...now is 2020..lol
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08-01-2020, 09:34 PM
#12872
YES off course I forgot last year ............now
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08-01-2020, 09:58 PM
#12873
Originally Posted by dreamcatcher
The other Beagle will go into warp drive with the yapping when he reads that...YAWN, where's my ear muffs...
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
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08-01-2020, 10:20 PM
#12874
Originally Posted by Beagle
The other Beagle will go into warp drive with the yapping when he reads that...YAWN, where's my ear muffs...
I am not bringing up the plunging price of dairy farms in an attempt to start a run on Heartland shares. I am trying to show that this, combined with the Heartland Australia funding mismatch, poor cashflow (inherent in a growing Reverse Mortgage business) and the late business cycle's likely effect on second tier lenders are all reasons why Heartland should not trade a a premium to other banks. The big banks have their own problems, different to that of Heartland Bank. I think the whole sector should trade at a discount to the market - no exceptions!
SNOOPY
Last edited by Snoopy; 08-01-2020 at 10:23 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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08-01-2020, 10:28 PM
#12875
Originally Posted by Snoopy
I am not bringing up the plunging price of dairy farms in an attempt to start a run on Heartland shares. I am trying to show that this, combined with the Heartland Australia funding mismatch, poor cashflow (inherent in a growing Reverse Mortgage business) and the late business cycle's likely effect on second tier lenders are all reasons why Heartland should not trade a a premium to other banks. The big banks have their own problems, different to that of Heartland Bank. I think the whole sector should trade at a discount to the market - no exceptions!
SNOOPY
It already is Snoopy and always does. Forward PE of HGH is about 13.5 compared to the median for the market of 19 and average by market cap of about 30. That's plenty enough of a discount in my opinion.
If you want something new to worry about, start right here https://www.msn.com/en-nz/news/world...cid=spartandhp
Last edited by Beagle; 08-01-2020 at 10:31 PM.
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
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09-01-2020, 08:59 AM
#12876
Originally Posted by Beagle
BEN 13.0
ANZ 11.5
WBC 13.5
NAB 12.0
CBA 14.2
BOQ 13.3
HGH 13.6
I am sure we're all well aware of the issues the Australians banks have with under capitalisation and other serious issues as a result of the Australian banking enquiry.
HGH looks well priced to me compared to its peers, most of which have serious issues.
Originally Posted by Beagle
Forward PE of HGH is about 13.5 compared to the median for the market of 19 and average by market cap of about 30. That's plenty enough of a discount in my opinion.
We are getting close to dancing on the head of a pin Beagle. I think we both agree that there is a least one opportunity to invest in the finance sector in today's market. We have both bought into HGH this year. Whether one should continue to accumulate at a PE of 12 (HGH at $1.64) or a PE of 13.5 (HGH at $1.85) comes down to what yield you would see as acceptable to offset the inherent risk of the investment.
Given your raw PE figures for all Australasian banks, I would be inclined to accumulate ANZ and reduce HGH. Of course the problems at ANZ dwarf any problems at Heartland in dollar terms. But in proportion to the size of the bank I think the potential problems at Heartland are at least a match for those at ANZ. I don't see Heartland as any less risky than the other banks and I think it should be trading on a PE of 12. That is a fairly minor variation on your position in the big picture of things.
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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09-01-2020, 09:27 AM
#12877
The two beagles are almost in agreement. It is now time to send you to the Middle East and see what you can do there.
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09-01-2020, 09:41 AM
#12878
Last edited by Beagle; 09-01-2020 at 09:50 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
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09-01-2020, 09:56 AM
#12879
Originally Posted by Brain
The two beagles are almost in agreement. It is now time to send you to the Middle East and see what you can do there.
Unleash the dogs of peace!
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09-01-2020, 10:21 AM
#12880
Originally Posted by Snoopy
We are getting close to dancing on the head of a pin Beagle. I think we both agree that there is a least one opportunity to invest in the finance sector in today's market. We have both bought into HGH this year. Whether one should continue to accumulate at a PE of 12 (HGH at $1.64) or a PE of 13.5 (HGH at $1.85) comes down to what yield you would see as acceptable to offset the inherent risk of the investment.
Given your raw PE figures for all Australasian banks, I would be inclined to accumulate ANZ and reduce HGH. Of course the problems at ANZ dwarf any problems at Heartland in dollar terms. But in proportion to the size of the bank I think the potential problems at Heartland are at least a match for those at ANZ. I don't see Heartland as any less risky than the other banks and I think it should be trading on a PE of 12. That is a fairly minor variation on your position in the big picture of things.
SNOOPY
Interesting looking at charts. "A picture is worth a thousand words" , [or three thousand of Snoopy's..lol.]
ANZ,WBC,and NAB are in strong down trends.
CBA is tracking sideways.
However HGH is in a very strong up trend.
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