HGH - Heartland Group Holdings

[Longhaul]

I think it has something to do with the impending move to stage 3, single digit new cases in NZ today, positive news on trials of a new Covid-19 treatment and the US futures showing a 3% rise (at the time of this comment).

I sold 90% of my HGH before the market got really bad. Then tried to get back in too early and sold for a small loss, and am back in today (but not with terribly high conviction).

Only one thing I am certain of and that is the future is uncertain!

[peat]

I think it has something to do with the impending move to stage 3, single digit new cases in NZ today, positive news on trials of a new Covid-19 treatment and the US futures showing a 3% rise (at the time of this comment).

I cant fathom that such short term factors would affect the price of this stock so much. But thats the interesting thing about stock markets , not at all displeased that its having a belated renaissance compared to others.

Only one thing I am certain of and that is the future is uncertain!

You aint wrong there.

[Cyclical]

I sold most of my HGH for about a 10% profit earlier last week at 1.03, the rest of them today at 1.17...got it wrong on both counts...this market is crazy! Still, at least I'm in the green.

[Playa]

I see on the Reserve Bank website that Heartland Bank has a BBB credit rating.I wouldn't be putting my money with them.

[Ggcc]

Anyone else feel a capital raise coming anytime soon??

[Cyclical]

I see on the Reserve Bank website that Heartland Bank has a BBB credit rating.I wouldn't be putting my money with them.

See Snoopy's comment on the last page...it's only likely to get worse before it gets better...

There is more than interest rates as an incentive to put your term deposit in Heartland bank at stake here. The big four banks have just had their credit ratings downgraded in NZ.

https://www.interest.co.nz/banking/1...otch-alongside

There was a very ominous sentence right at the end of the Fitch press release.

"We will review the remaining Australian and New Zealand banks rated by Fitch in the near future."

Heartland bank is currently BBB. A downgrade to BBB- they could handle. But anything more than that Heartland is no longer an 'investment grade' deposit option. There are some entities that are only allowed to put their funds into bonds and banks with a BBB risk profile and nothing lower. IMO the deposit position at Heartland is now under threat in a way it was not a week ago.

SNOOPY

[ScrappyO]

Credit ratings don't mean jack. Look what happened in the GFC.

[ScrappyO]

Anyone else feel a capital raise coming anytime soon??

I was thinking the same thing.

[BlackPeter]

Credit ratings don't mean jack. Look what happened in the GFC.

Yes and no.

A great credit rating can be pretty much meaningless - that's what the GFC taught us. So easy for money to disappear.

However a weak credit rating is always a red flag, and rightly so ... and BBB isn't too strong. Much easier for money to disappear into thin air than to appear from it (unless you are a reserve bank).

HGH better worries about their credit rating, and I am sure they do. Did I just hear the words "Capital raise"?

[iceman]

Anyone else feel a capital raise coming anytime soon??

I would say that is a very real possibility and I also think dividends will be suspended for a year or two.

Discl: For the first time since it was called BSH do I not hold any HGH