HGH - Heartland Group Holdings

[mouse]

Closed today at 71cents. At closing point a substantial number of shares sold, driving the price down. I saw this used in HK in 1971? To both drive up and drive down the price. Manipulate the market. Is this what we are seeing, prior to The Mafia, any country, making the dollar bid? I dont have to be right, I do have to be suspicious.

[Xerof]

A lot of people only deal in the opening/closing auctions. It's where liquidity usually surfaces for their volume to get done.

mouse, I think you're 'trapped' in conspiracy theory.....

[mouse]

You could be right. We wait to see.

A lot of people only deal in the opening/closing auctions. It's where liquidity usually surfaces for their volume to get done.

mouse, I think you're 'trapped' in conspiracy theory.....

[Lizard]

Liz,

it's 20 years since I was last involved in Bank treasury ops, and in those days Capital Adequacy Ratios were only just being implemented globally (Cook ratios in those days)

It seems the basic principles have morphed into Basel i,ii and iii, and without knowing the exact details, I think you can take it for granted that banks comply with the requirements at all times. Monitoring by the authorities is fairly detailed and intense.

i do know that asset classes and liability classes for that matter, have been tweaked over the years, perhaps to cope with the financial engineering that the back room boys seem to invent on a daily basis, and push out to the unsuspecting public and insto's as new products.

So, each bank would apply the rules as they stand to each item on the asset side of the balance sheet, multiply $ amounts by the appropriate weighting, to determine an 'adjusted' balance sheet number (off bs products are alo captured to varying degrees)

similarly, the same exercise is done for the liability side, to calculate adequacy ratio

in a nutshell, don't sweat the detail, but if a bank's experiencing high growth, in products that are 'expensive' to hold on/off B/S, and it's Basel ratio is nearing the limit, sure as eggs, you will be looking at a CR

HNZ products would carry more capital requirements than Kiwibank products I would suggest, and that means less leverage to expand the operations

Thanks Xerof. Appreciate your help. For interest, below is the snapshot of weightings for HNZ exposures from last report:

Attachment 4351

On maths only, that seems well covered by the $344m of tier 1 capital, so doesn't seem to show asset mix inhibiting growth yet? Also, the fact that HNZ has a higher condition for capital adequacy placed on it than other banks by the RBNZ may mean that they would already be holding enough capital should ratios move again?

I am probably too optimistic/simplistic though, as not really familiar with banks/financials.

[janner]

Numbers stay the same Moosie.. It is only the point that changes..

[GR8DAY]

I keep telling my father to buy-in because he needs to de-risk his buy options but, alas, he won't listen to me. Will get a call in 3-6 months saying "you were right, I should have listened to you and that internet clown".

[Thanks for the heads up on it btw Sparky]

That's AIG btw, not PGW!

MAYBE DAD KNOWS A THING OR TWO YOU DONT MOOSE??...........hope you sold out in time in time, not looking that flash at the mo!

[blobbles]

I don't get the share price today, heaps of people willing to buy at 73c and rising to 74c, then someone goes and sells 4000 odd for 71c??? They don't want more money for their shares or what?

[POSSUM THE CAT]

They might know something or have very good brains

[percy]

They might know something or have very good brains

They may not too.!!!!! Yeah right!!!!
Most of today's trades [247,992 shares] were at 73cents.Only small parcel of 4415 shares traded at 71cents.

[blobbles]

They may not too.!!!!! Yeah right!!!!
Most of today's trades (247,992 shares) were at 73cents.Only small parcel of 4415 shares traded at 71cents.

That's what I mean by ridiculous. To me, that sounds like someone forcing the price down so they can buy a whole lot more at a potential discount. Is this sort of thing ever investigated by anyone?