Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Yeah I see that's the average price target of 3 brokers. Been some pretty big moves in banking stocks in the last few days. One wonders if we aren't at an inflection point ?
I brought up the chart but technical analysis wasn't much help. Share price is right on the 30 day MA line, whereas with say regional banks in Australia BEN and BOQ, there is a clear break up through the 30 day MA indicating a breakout. I also see clear breakouts above the 30 day MA for WBC, ANZ, NAB, and CBA but not for HGH ?
I have this on my watchlist. It appears to be building a bottom and I am following closely. The concern at a fundamental level is that the level of loan defaults is going to very seriously escalate both in this years accounts and next year. Its a very hard stock to price because the level of defaults and provisions is almost impossible to predict. I remain very cautious with this one. Disc: Presently don't hold.
Last edited by Beagle; 28-05-2020 at 10:31 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Harmoney & the like are filed under Other Personal in the Accounts.
Here is the bit I find confusing.
1/ There is a nice pie graph on page 8 and 9 of the 'Annual Review 2019' showing the distribution of gross receivables. That totals $4.4 billion and 'Harmoney and Other Consumer Lending' has a definite slot in $224.6m of the total. BUT
2/ When we turn to the 'Annual Report 2019' p40 and look at the 'Concentration of Credit Risk by Industry Sector' categories, the categories no longer line up. There is no obvious slot for Harmoney. Has it been rounded up into 'Households'? Or is it in 'Other'?
Yet an even more important question than that confusion is why I even have the right to ask the original question: "Where does the Harmoney lending appear in the Heartland annual accounts?" No one told me overnight that I shouldn't be asking such a question.
I thought Heartland had a 10% stake in Harmoney. I checked with the companies office and found I am out of date with this view.
Heartland now own 13.1% of Harmoney. That was a shock in itself as I don't remember Heartland announcing they were upping their stake. But 10% or 13.1% doesn't change the argument I am about to present. With such a small stake (I thought they needed 50.1% of an subsidiary for consolidation), why are Harmoney receivables consolidated into the Heartland accounts at all? Can anyone answer that?
SNOOPY
Last edited by Snoopy; 28-05-2020 at 10:44 AM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
My understanding is HGH do a LOT of the wholesale funding of Harmoney's loan book. I think all of this lending is unsecured.
Last edited by Beagle; 28-05-2020 at 10:48 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Businesses got wage subsidy from the labour...free interest loan.... everything back to normal now.....chance of business failure b bad debts are low on the the short term. ..not sure about end of year....
Businesses got wage subsidy from the labour...free interest loan.... everything back to normal now.....
You sure about that mate ? Have Ngai Tahu started up their tourism business's again ? https://www.nzherald.co.nz/business/...ectid=12327101
Interesting article on Waitomo Caves on telly last night. Visitor numbers down more than 90%. Maybe a good time for Kiwi's to go and avoid the crowds ?
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Not hospitality n tourism....what I said our economy. Yes...I will see businesses especially on tourism n hospitality go bust. .but HGH loans are heavy on farming.... agriculture.....so....yeahhh...
You sure about that mate ? Have Ngai Tahu started up their tourism business's again ? https://www.nzherald.co.nz/business/...ectid=12327101
Interesting article on Waitomo Caves on telly last night. Visitor numbers down more than 90%. Maybe a good time for Kiwi's to go and avoid the crowds ?
Good time for Kiwis to go to lots of places and avoid the crowds - we get our country back for a while (at a bit of the jobs cost).
Originally Posted by King1212
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