HGH - Heartland Group Holdings

[winner69]

Heartland not buying Stockco NZ?

This article says Heartland been funding Stockco NZ -- Heartland Bank also understands and has a relationship with StockCo through financing the operations of StockCo New Zealand for over 10 years.


https://www.beefcentral.com/news/nz-...kco-australia/

[Beagle]

Heartland not buying Stockco NZ?

This article says Heartland been funding Stockco NZ -- Heartland Bank also understands and has a relationship with StockCo through financing the operations of StockCo New Zealand for over 10 years.


https://www.beefcentral.com/news/nz-...kco-australia/

Thanks for the link mate. This bit is really interesting The transaction is expected to contribute additional annual net profit after tax of A$10 million to A$12 million, before any ongoing cost of acquisition debt funding. At this stage, given timing of the acquisition and the transaction costs, there is no change to Heartland’s market guidance for the financial year ending 30 June 2022 (FY2022).

Suppose they fund that acquisition at 4% before tax, about 3% after tax that suggests a funding cost of about $A5m and this acquisition could be earnings accretive by between $A5m - $A7M per annum, say $A6m = approx N.Z$6.4m = ~ 0.9 cps annual earnings. Applying HGH's very reasonable current year PE of 14 to that this suggests this is value accretive to HGH to the tune of 12.6 cps.
Upgraded my view on HGH to BUY on the back on this acquisition.

[winner69]

Thanks for the link mate. This bit is really interesting The transaction is expected to contribute additional annual net profit after tax of A$10 million to A$12 million, before any ongoing cost of acquisition debt funding. At this stage, given timing of the acquisition and the transaction costs, there is no change to Heartland’s market guidance for the financial year ending 30 June 2022 (FY2022).

Suppose they fund that acquisition at 4% before tax, about 3% after tax that suggests a funding cost of about $A5m and this acquisition could be earnings accretive by between $A5m - $A7M per annum, say $A6m = approx N.Z$6.4m = ~ 0.9 cps annual earnings. Applying HGH's very reasonable current year PE of 14 to that this suggests this is value accretive to HGH to the tune of 12.6 cps.
Upgraded my view on HGH to BUY on the back on this acquisition.

My guess of 2 cents and 25 cents plus to share price a bit wrong eh

[Beagle]

My guess of 2 cents and 25 cents plus to share price a bit wrong eh

Sorry mate, I wasn't trying to undermine you, I didn't see your post before I posted. Could be a bit more depending on the price of funding and how it grows going forward and any operational synergies they can extract. Maybe ~ 20 cents extra value to HGH is not out of the question ?
Any way you slice and dice this its meaningfully earnings and value accretive for HGH shareholders.

[winner69]

Sorry mate, I wasn't trying to undermine you, I didn't see your post before I posted. Could be a bit more depending on the price of funding and how it grows going forward and any operational synergies they can extract. Maybe ~ 20 cents extra value to HGH is not out of the question ?

Whether its an extra 10 cents or 20 cents or maybe even 30 cents it is going to add a reasonable chunk to HGH share price

And Jeff will ensure its a success

[Waltzing]

"And Jeff will ensure its a success"

is that before or after a BIG DRY event....

suppose there is always insurance ...

why not buy an insurance firm?

Livestock?

oh dear ....

https://nullarborroadhouse.com.au/creatures-middle-nowhere-wildlife-nullarbor-plain/

[percy]

"And Jeff will ensure its a success"

is that before or after a BIG DRY event....

suppose there is always insurance ...

why not buy an insurance firm?

Livestock?

oh dear ....

https://nullarborroadhouse.com.au/creatures-middle-nowhere-wildlife-nullarbor-plain/

About StockCo Australia
StockCo Australia was founded in Australia in 2014, but has origins in New Zealand dating back to
1995. The company provides livestock finance for cattle and sheep farmers across Australia,
primarily through its direct channel.
Like Heartland’s livestock lending solutions in New Zealand, StockCo Australia provides cashflow
solutions to customers who are typically asset rich, allowing them to purchase livestock, maximise
returns, and run their business more effectively.

[Waltzing]

" typically asset rich"

the economic farm surveys in NZ were a great stat report in the early 80's . Havnt read the Aussi version if there is one still published on the state of Aussi farming.

suppose one should seek it out and come up to speed.

Certainly HGH has performed. Sadly the PGC days have always stayed in the mind but not MR P's.

MR P has thus profited.

[Beagle]

Whether its an extra 10 cents or 20 cents or maybe even 30 cents it is going to add a reasonable chunk to HGH share price

And Jeff will ensure its a success

No doubt we're both already very well positioned

[Beagle]

Whether its an extra 10 cents or 20 cents or maybe even 30 cents it is going to add a reasonable chunk to HGH share price

And Jeff will ensure its a success

Managed to "hound up" a few more at the close today at $2.25. In the circumstances, what a gift !