HGH - Heartland Group Holdings

[janner]

Ha haa, hope you aren't referring to me as an expert! I am a small time investor that's only been in the game 2 years, but had planned to get in on the Xero float but stupidly forgot and paid for my mistake (relatively speaking). As such I still have heaps to learn about how things work! Cheers Xerof

Stay with those thoughts Bobbles.. We are all small time investors.. We all still have much to learn.. We on this site are willing to expose our failings.. And .. Only occassionally . .. Trumpet our Victories..

The Banter.. The Borax..

Profitable learning is why I am here... From any one... Including .. YOU.. :-))

[winner69]

Never been any "warm fuzzies" with this company.Speak plain English, and deliver what they say they will.

No no percy .... its me that wants the warm fuzzies

I'm sure Jeff is pretty pleased with his corporate speak

[janner]

No no percy .... its me that wants the warm fuzzies

I'm sure Jeff is pretty pleased with his corporate speak

Oh !!.. Back handed compliment ???

[janner]

No no percy .... its me that wants the warm fuzzies

I'm sure Jeff is pretty pleased with his corporate speak

Interested to know which company does give you the " Warm Fuzzies " winner..

[percy]

Snoopy is talking about a reduction of revenue in certain segments, but conveniently neglects to mention earnings are up. In some people's books, the best growth is when earnings go up, not revenue.

HNZ are being selective about the business they want to fund, focusing on the cashflow positive parts of a farm (machinery, livestock), rather than funding the land itself. They don't want to contest the mortgage space with the big banks head on. They have told me directly that they are keen to work with the big banks (who also seek to partner with HNZ to help spread risk), so that HNZ fund the business, stock, plant and equipment, and ASB/ANZ/??? fund the land. It is a "symbiotic" relationship. ASB don't want to end up with a combine harvester, and HNZ don't want to fund land they are uncompetitive on. They will be most keen to lend to households for mortgages when they have a total relationship, rather than competitively quoting for every man and his dog.

HNZ have said to me that their business model is ideally 1/3 consumer, 1/3 SME+business, and 1/3 agricultural.

http://www.scoop.co.nz/stories/BU130...ed-margins.htm
http://www.stuff.co.nz/business/mone...lay-niche-role

I'm sure that a quick phone call or an email to the folks at Heartland would assist Snoopy with understanding this better than a financial statement alone. I hope Snoopy makes the call on Monday.

Sparky The Clown.
Thanks for your post. "the best growth is when earnings go up,not revenue." Exactly.Right on.!!!!

[janner]

Snoopy is talking about a reduction of revenue in certain segments, but conveniently neglects to mention earnings are up. In some people's books, the best growth is when earnings go up, not revenue.

HNZ are being selective about the business they want to fund, focusing on the cashflow positive parts of a farm (machinery, livestock), rather than funding the land itself. They don't want to contest the mortgage space with the big banks head on. They have told me directly that they are keen to work with the big banks (who also seek to partner with HNZ to help spread risk), so that HNZ fund the business, stock, plant and equipment, and ASB/ANZ/??? fund the land. It is a "symbiotic" relationship. ASB don't want to end up with a combine harvester, and HNZ don't want to fund land they are uncompetitive on. They will be most keen to lend to households for mortgages when they have a total relationship, rather than competitively quoting for every man and his dog.

HNZ have said to me that their business model is ideally 1/3 consumer, 1/3 SME+business, and 1/3 agricultural.

http://www.scoop.co.nz/stories/BU130...ed-margins.htm
http://www.stuff.co.nz/business/mone...lay-niche-role

I'm sure that a quick phone call or an email to the folks at Heartland would assist Snoopy with understanding this better than a financial statement alone. I hope Snoopy makes the call on Monday.

Percy.. Please note .. You have at least one convert.. :-)

Sparky.. Just my note.. Your investment into AIG " $35 or so .. Expecting to go to $50 or so ...

Equates to HNZ going from .70 to .90.. or there abouts..

Not wishing to know amounts .. and understanding the difference between the liquidity of the US Markets.. and ours..

Why Aig as against hnz.. ??..

This is a serious question Sparky because ... Because.. because.. ??????.. I would like to know..

[janner]

Hmm.. Thanks for the reply..

So.. Understanding .. " Deep Growth " Why did you not understand that HNZ was deep growth ... Knowing that you have already said that it is a long term investment.. ??

This is one area that intrieques me.. Of course the market would collapse if we all invested into penny dreadfulls..

But their would be no market with out them !!..

Why invest " $35 .. ??

[mouse]

The Banking License is interesting. How much is it worth? Is it down on the financial report as an 'asset.' If not valued at present, what is its value? Can anyone give some advice on it? I think a Bankers License must be worth cash. How much am I bid?

Janner, had I bought HNZ when it was in the 50c range on the basis it was trading at a massive discount to NTA, and was mispriced, I would have bought into HNZ as a deep value play.

However, I really didn't know enough about the company until they got their banking license, which was what really got my research synapses firing.

By then though, I was more interested in their earnings growth potential, rather than a mispriced share value compared to NTA (which at 67-70c to 88c, was still a big discount).

So I can see HNZ's shareprice rise to an intrinsic value of $1.00 based on 2013 earnings.

Conversely, I can see AIG re-value to a more rational level compared to its price/book of 0.58, as more people realise that it WAS a basket case 3-4 years ago, but is no longer. This is a case, (well at least I say it is) of the market fears irrationally pricing a stock because of former fears.

This is what I look for in a value investment - where people are scared of a company on the mend because they see high risk. The truth is, the very low price is what makes it less of a risk than blue chips that are fairly priced.

[janner]

It cost Heartland more than they expected - their recent result was a bit depressed as a result of one off costs associated with consultants, lawyers etc in gaining the licence.

What it is worth is not so much a fixed price, but the margin increase in loaning out cash.

Consultants, lawyers... The Remora fish of this world today....

[mouse]

I agree that having Reserve Bank monitoring on a day to day basis is of great vaue to us shareholders. But what does the market think it is worth? The costs of getting it are history. The benefits, or problems of having it must have some cash value which has to be reflected in the share price. Can someone, cleverer than me, hazard a guess? If necessary an uneducated guess?

It cost Heartland more than they expected - their recent result was a bit depressed as a result of one off costs associated with consultants, lawyers etc in gaining the licence.

What it is worth is not so much a fixed price, but the margin increase in loaning out cash.