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04-12-2020, 01:45 PM
#14131
Originally Posted by winner69
They obviously believe that Motor should be valued at higher multiples than a bank
Sum of the parts more than the whole seems to be in their thinking
They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !
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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04-12-2020, 02:27 PM
#14132
Originally Posted by Beagle
They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !
Whatever ‘vehicle’ they use reflects that reflects a PE of 20 plus for Motor will be good
A demerger at least means you would own it ...until you sell,
”When investors are euphoric, they are incapable of recognising euphoria itself “
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04-12-2020, 02:47 PM
#14133
Originally Posted by Beagle
They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !
From memory Harmoney was touted as being valued at 3.5 times income
Heartland on same multiple would be $1.70 to $2.00 on how you treat cash
Last edited by winner69; 04-12-2020 at 03:13 PM.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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04-12-2020, 04:26 PM
#14134
Originally Posted by Beagle
They could be right...just look at the forward metrics Hamoney was floated on ! Works wonders dressing up new floats with a fintech label. People just lap up that sort of "lipstick" marketing.
Maybe they could float Heartland vehicle finance off at a PE of 20 !
But if the Marac business is that profitable (which I believe it is) and undervalued, why not just keep it and pay out the big dividends for years to come. That is my preference.
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04-12-2020, 06:05 PM
#14135
Originally Posted by iceman
But if the Marac business is that profitable (which I believe it is) and undervalued, why not just keep it and pay out the big dividends for years to come. That is my preference.
Agreed.
Actually, ever since they put a Beagle on their homepage the share price has been going great https://www.heartland.co.nz/
Imagine if they put a younger more attractive one on there or better still a whole litter of Beagle puppies instead
Think Dog's don't make a difference for business ? Think again ! https://www.scoop.co.nz/stories/CU0008/S00053.htm
Last edited by Beagle; 04-12-2020 at 06:22 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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04-12-2020, 09:05 PM
#14136
Best to wait until the dust settles with HMY - the downwards spiral from NZ 3.75 IPO price has already seen SP shrink to NZ 3.17 at close today
Last edited by nztx; 04-12-2020 at 09:06 PM.
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05-12-2020, 11:46 PM
#14137
Junior Member
Reverse mortgages in Australia
Originally Posted by iceman
I am not concerned about the reverse mortgage business at all. It has been showing great strength in Australia and I have no doubt it will do so again post COVID, in Australia at least. NZ seems much slower on the uptake.
We need to remain mindful of the fact that these numbers are for 4 months only and during a pandemic when large parts of the target market for this product, has been in lockdown or self imposed social isolation.
The RMs are mainly used for "nice to haves" such as housing upgrades, vehicle upgrades or travel, all of which require interactions with people outside of one's bubble. Clearly that has had negative effect on the RM business for obvious reasons, but in my view it is a temporary blip that will quickly return to normal once COVID is dealt with next year.
Not sure about Iceman's assessment of RMs in OZ - there are 3 new lenders in past 12 months, all with better pricing and access to third party distribution. Would need a revamp of Australian operations to get into the game
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07-12-2020, 10:08 AM
#14138
Originally Posted by nztx
Best to wait until the dust settles with HMY - the downwards spiral from NZ 3.75 IPO price has already seen SP shrink to NZ 3.17 at close today
At $3.17, Heartlands Harmoney stake is valued at $27 million. It's never going to be more than a tiny part of Heartland's valuation, but the initial revaluation could be a meaningful one time impact for next earnings report - depending of course on where the Harmoney share price settles at (like you point out).
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08-12-2020, 08:19 AM
#14139
From the Business Desk Daily free email today:
Forsyth Barr analysts doubt Heartland's profit guidance
Forsyth Barr analysts are dubious about Heartland Group Holdings' ability to meet its full-year guidance, even though the company told the annual shareholders' meeting it is tracking ahead of expectations.
Heartland told the meeting net profit for the four months ended October was $29.9 million. If one assumed that represented an average monthly performance, the implied full-12 months result would be $89.7 million.
Read the full story at BusinessDesk — subscribe now
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08-12-2020, 08:36 AM
#14140
Forsyth crook...lol. that means the analyst saying the management is lying? Or misleading?
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