HGH - Heartland Group Holdings

[Snoopy]

Sad, awkward as well. "Your honour, I never intended to sell when I bought, but circumstances changed so I sold." Like the IRD will give a flying fig about that. Hello tax time, when the accountant says, umm, "now, about those taxes Mr Trader".

Percy will have done very nicely out of HGH, having bought in well below $1, less trading (buy and sell ) fees and tax on capital gains, perhaps not so much on some others, some an outright loss after capital losses and trading fees. We can't beat-up folks who make their own decisions who cast themselves as traders and hopefully understand the fees and tax consequences. It is what it is.

Percy purchased his Heartland shares with an eye on them giving him a solid dividend steam in his retirement and without any firm sell strategy in mind. The dividend stream has been stopped. So Percy has a very legitimate reason to sell. This is not a capital gain event for him in tax terms. It is a legitimate sale due to an unexpected change in circumstances from his genuine reason for buying in the first place. No tax on any capital gain from his Heartland sale would be expected in this instance. But then again he wouldn't be able to claim a capital loss on his escapade into TRA shares either!

SNOOPY

[Gerald]

https://www.youtube.com/embed/v1iYVfY_0Zs

[Cyclical]

Until The Virus hit I had my portfolio as I wanted.
The world has now changed,therefore my portfolio has changed.
Some sectors will do well,while others will not..
The sectors that will do poorly,or that will take a long time to recover are best left to younger people than me,who have a longer investment time frame, than I have at my age.
The lock down has seen us spend more time doing business online.This will affect office space,as more people work from home.Retailers will loose trade to online retailers,this will affect the retail property owners.
Rising unemployment,together with large number of business failures, will affect lenders such as finance companies and banks.Property prices will come under pressure,which will carry over to the retirement village sector.
Some businesses such as power companies and phone companies will carry on.I hold GNE,MEL and SPK.
Rural/primary businesses, should do well such as PGW,SAN, SEK,SCL and possibly CVT,even NZK [although I have my doubts].I hold PGW.
My largest holding is PAZ on Unlisted.Pure ingredients from NZ raw materials.The right sector at the right time.
As I do not know the full affects,or how long the Corona Virus will last,I have have sold TRA, and HGH and have a rather large cash holding.I would expect we will find out how TRA are trading in their half year announcement in late November,while HGH should give some clarity in February next year..
I am a patient investor.I have other holdings in NZ and Aussie..Any holding with an earnings upgrade I am adding to my holding,such as AVA in Aussie.
I am prepared to sit on my cash pile forever, if I do not feel comfortable with the market.As it is I still have a good amount invested in the market, and have no need for more shares.
Opportunities have always seemed to come my way when ever I have held cash.

Well, that's a very sobering voice of reason. Mr Market doesn't seem to agree with you in many respects, which I've been really struggling with, but I think the day of reckoning is coming...or an extended period of it, in which you'll be proven correct, and many of us will get burnt. Personally I'm exposed to at least 3 of those sectors you advise against...guess I'll be hunkering down for the long haul.

[horus1]

I have a lot of HBL shares , over 1M,.I added below a dollar. Am continuing to hold , with the amount being pumped into the economy I believe the forecasts are too bearish . Tourism and hotels and travel are in trouble but other sectors will recover. It is not like 87 or GFC as the govt has adopted a better response. PS I am over 70 and th portfolio is for the grand kids as my kids have done OK

[RTM]

Well, that's a very sobering voice of reason. Mr Market doesn't seem to agree with you in many respects, which I've been really struggling with, but I think the day of reckoning is coming...or an extended period of it, in which you'll be proven correct, and many of us will get burnt. Personally I'm exposed to at least 3 of those sectors you advise against...guess I'll be hunkering down for the long haul.

It is.
I also worry about holding cash. Its fine when inflation is benign as it is currently, other than interest rates being really low.....but I guess that is going to change at some point. Longer term I would see stocks revaluing to more or less match inflation ?

[Pricey]

As Snoopy predicted, Fitch has re-assessed Heartland Bank, and it's good news!


Fitch affirms long-term rating of Heartland

19 May 2020

Fitch Ratings (Fitch) has affirmed the Long-Term Issuer Default Ratings (IDR)
of Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland Group) and
Heartland Bank Limited (NZX: HBL) (Heartland Bank) at 'BBB' and the Long-Term
IDR of Heartland Australia Group Pty Ltd (Heartland Australia) at 'BBB-'. The
Outlooks remain Stable.

...

Fitch noted that "the ratings of [Heartland
Group] and [Heartland Bank] are driven by the group's consolidated risk
profile, which reflect its stronger-than-peer profitability"

[nevchev]

Thats great news.As stated in the release,not many have avoided some degree of negativity in their assessment

[sb9]

Thats great news.As stated in the release,not many have avoided some degree of negativity in their assessment

Pretty respectable for a local bank in our own backyard.

[Snoopy]

As Snoopy predicted, Fitch has re-assessed Heartland Bank, and it's good news!

Fitch affirms long-term rating of Heartland

19 May 2020

Fitch Ratings (Fitch) has affirmed the Long-Term Issuer Default Ratings (IDR)
of Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland Group) and
Heartland Bank Limited (NZX: HBL) (Heartland Bank) at 'BBB' and the Long-Term
IDR of Heartland Australia Group Pty Ltd (Heartland Australia) at 'BBB-'. The
Outlooks remain Stable.

...

Fitch noted that "the ratings of [Heartland
Group] and [Heartland Bank] are driven by the group's consolidated risk
profile, which reflect its stronger-than-peer profitability"

I found it most interesting that the "Heartland Australia Group Pty Ltd" retained its credit rating, given it is a vehicle for the Australian Reverse Mortgage market. There is no doubt that Heartland in New Zealand will suffer a downturn in some of their new loans related to new vehicle sales in particular. But Fitch are saying that other aspects of the business, specifically reverse mortgage (as evidenced by Fitch giving Heartland Australia Group Pty Ltd the big tick), will counter that. That should give HGH shareholders (both present and past ;-) ) good confidence that our Jeff is steering the HGH ship the right way.

The broad brush view of finance companies doing poorly during a downturn may hold ( I heard the Co-operative Bank had a credit downgrade today). But HGH has shown there may be firms that slip between the bristles of that broad brush. Remember BBB is investment grade, and that will allow a much wide range of organisations to continue to put their money with Heartland.

SNOOPY

discl: hold HGH

[peat]

https://www.youtube.com/embed/v1iYVfY_0Zs

haha that's funny