HGH - Heartland Group Holdings

[Snoopy]

I wonder whether you will get a $100mil bond issue this time.?

I read the announcement regarding Heartland 'considering' a new un-subordinated note for NZ wholesale and retail investors Percy. A 'sister issue' to the Heartland HBL010 4.5% note issued on 21-09-2017. Since they are only 'considering' making such an issue, I thought that Jeff was very organized having all the lead managers of the issue named and appointed. Am I correct in saying that the old HBL010 issue was for a total of $151.853m? Looks like Jeff may be fishing for participants, and if there are more that take the hook than he wants, then the interest rate offered will be less than 'they' want. All good for shareholders though!

In some ways I hope this new bond issue fails to get off the ground. This would then 'prove' the need for the company to have restructured into Heartland Group Holdings, because of the lack of appetite of NZ investors to fund Heartland's expansion. However, I can't personally complain about the creation of HGH, because the subsequent share price plunge is what gave me my competitive entry price into the Heartland shareholder family.

Depending on how things pan out, I may just be 'considering' increasing my Heartland share holding ;-P

SNOOPY

[percy]

HBL010s mature 21/9/2022.issue was 150 mil.,
Most probably "fishing" is the right way to go about it.
That way they "meet the market" both in size and rate.
I too may "consider" increasing our HGH holdings...lol..

[Beagle]

We are well overdue for a strong run. Was flicking through some old financials of mine the other day and noted my holding in HBL as at March 2015 had a market value of $1.31. 4 years and its only put on ~ 20 cps. Hardly a stellar run by any stretch of the imagination although at one point it did hit...oh I'd better not go there again lol
Maybe in another 4 years it will have a 2 as the first number of the share price again...we live in hope

[percy]

Like a broken record we expect you to keep on going there,going there,going there,going there....going there.its what you do best..going there....

You do not hear those of us who brought at between 60 cents and a $1, going there,going there,going there... lol.

[Snoopy]

HBL010s mature 21/9/2022.issue was 150 mil.,

Under note 13 in AR2019, 'unsubordinated note borrowings' are up to $151.853m at balance date, up from zero the previous year. Do you know what makes up the $1.853m difference? Oversubscriptions?

SNOOPY

[winner69]

Under note 13 in AR2019, 'unsubordinated note borrowings' are up to $151.853m at balance date, up from zero the previous year. Do you know what makes up the $1.853m difference? Oversubscriptions?

SNOOPY

A few extra they handed out to loyal shareolders who heavily promote and defend the company? ....sort of a reward for services rendered?

[Beagle]

Like a broken record we expect you to keep on going there,going there,going there,going there....going there.its what you do best..going there....

You do not hear those of us who brought at between 60 cents and a $1, going there,going there,going there... lol.

But I didn't go there, sorry to disappoint you lol
The point is $1.50 is not special for a company that was $1.31 4 whole years ago. I am sure we can find common ground that its due for a decent run.

[percy]

Agreed.
I think "the market" is finally realising HGH's potential,and the fact it is not tarred with the same brush as the Australian Banks.
Why it got ahead of itself and went over $2.00 is hard to figure.I think a lot of us thought "UDC" was a done deal,when it was not.

[Beagle]

Yes perhaps it was that but the multiple simply got too far ahead of itself in my opinion, just like it went stupidly low at $1.31 on the back of the tarring you mentioned.
I think they have excellent prospects for growth in EPS for the foreseeable future and the present forward multiple is well and truly toward the bottom end of its long term range therefore there's plenty of prospect for share price gains from both eps growth and multiple expansion. Maybe we see $2 again in 2021 ?
$1.72 by Craigs probably about right as a price target for early 2020 though in my opinion and in the meantime there's the very attractive yield to enjoy
Even this old hound that gets bored easily can afford to be patient when enjoying an 8.8% gross yield ! (Based on assuming 9.5 cps fully imputed dividends for FY20 9.5 / 0.72 / 150 = 8.8%).

[horus1]

This is a good buy at 1.50 as you say Beagle. I think a lot expect an issue and have held back