HGH - Heartland Group Holdings

[iceman]

With SCOTTY's .. Response to Percy.. An " almost " Fanatic ( with good reason ) on HNZ.. I rest my case m'Lord..

I couldn't put it better myself ! Thanks from another "fanatic" Percy

[K1W1G0LD]

Yes thanks for the report Percy , thats good stuff.

[Balance]

'fast growing' in every sense is a comparative term. If you look at the Heartland FY2012 accounts in comparison with the FY2011 accounts, then yes they have grown. However in that time they absorbed PGG Wrightson finance. In comparing the size of Heartland, if you use the the sum total presence of "PGG Wrightson FY2011" + "Heartland FY2011" and compare that with "Heartland FY2012" (the apples with apples comparison IMO) then the collective "Heartland' is actually shrinking.

Of course I would argue that this is a good thing as it shores up Heartland's capital position. But to the faithful, pointing out that Heartland is not growing is heresy.

SNOOPY

Snoopy, allow me to summarize the opinions of those who are in HNZ :

1. Growth for growth's sake is a bit like drinking for the sake of getting drunk - nothing can come good from it, save for a sore head or a busted liver years later. Just as bad as buying stuff non-stop just because it is on sale.

2. HNZ is doing it the right way - grow profitably and be patient. That is the correct strategy.

3. Capital is not an issue when you are profitable and demonstrate disciplined and profitable growth. There is unlimited capital available out there for banks when they show they are well managed and disciplined.

South Canterbury Finance and the other finance companies provide ample proof that growth (and size) are not everything.

If you go back far enough, the BNZ blew itself up twice growing for growth's sake - and BNZ had unlimited access to capital back in those days.

As has been written before, you are missing the big picture, Snoopy, by nitpicking on numbers.

HNZ is on the move and there's plenty more potential ahead.

[percy]

HNZ is on the move and there's plenty more potential ahead.

I think we will look back in a year's time and realise what an understatement that is.!!!!

[Balance]

I think we will look back in a year's time and realise what an understatement that is.!!!!

Snoopy will still be looking at reasons why HNZ should not be granted a bank license?

[Balance]

George Kerr practically gifted his shares to everyone who bothered to buy less than a year ago at 52 cents!

28 cents gain plus 3.5 cents dividend = 60% gain.

Who says Georgie Porgie is not a nice guy?

[Under Surveillance]

More than enough Capital.In fact too much capital,so I take it we may see a share buy back or a capital return.

Thanks for the report, percy. The extract above makes me wonder why they recently instituted a dividend reinvestment plan.

[percy]

Thanks for the report, percy. The extract above makes me wonder why they recently instituted a dividend reinvestment plan.

I don't know.I guess because so many NZ shareholders ask for one.
I was at a Cavotec meeting, and noticed the chairman was puzzled by shareholders request for a dividend reinvestment plan.Maybe it's a NZ thing.!!

[iceman]

Thanks for the report, percy. The extract above makes me wonder why they recently instituted a dividend reinvestment plan.

I was thinking exactly the same, especially as there is no discount to reward current shareholders ! But I've signed up to the DRP anyway

[CJ]

I was thinking exactly the same, especially as there is no discount to reward current shareholders ! But I've signed up to the DRP anyway

Same. BUt only while I consider it is selling at a discount to true value (~$1). After that, they will need to offer a discount or pay me cash.