HGH - Heartland Group Holdings

[winner69]

Not sure what you're looking at winner:

HGH

$1.715

22.5 11.6%

ASX https://www2.asx.com.au/markets/company/hgh $1.715 -$0.224 (-11.597%)

Direct broking looks like this

[percy]

Direct broking looks like this

Australia......................................... ...............................................New Zealand
Last price traded 860 shares at $1.54............................................. .....50,031 at $1.92
VWAP $1.6974........................................... .......................................$1.9342
Total volume traded for the day 2872 shares for total value $4,875..........Volume 652,642 ..Value $1,262,312
No point in getting too excited about the small volume or price in Aussie.

[Beagle]

Q/ When do you call a finance company in drag a bank?
A/ When its name is Heartland.

I don't buy these 'peer group' arguments. We should all be grateful that Heartland is a bank in marketing spiel only. We all know Heartland bank accounts are actually Westpac bank accounts with a Heartland marketing sticker on the top of the page. Even that is pushing things. The parent company we can invest in, is called 'Heartland Group Holdings'. But that company doesn't have a banking licence. Only its subsidiary does, and that is for 'marketing reasons'.

SNOOPY

Snoopy me ol Beagle mate have you had a good sniff through their financials' lately and looked at the size of their reverse home loan lending book and the speed its growing ? The only part of their book that really worries me is their exposure to "Harmoney" which is lending based on nothing more than one's credit rating and is quite possibly going to be anything but harmonious in a deep recession. That said, yeah, this is a real chance of going down to the bottom of its metrics trading range of 9-18 and a resulting share price of about $1.50-$1.60 in a deep recession just like most other banks have considerable possible downside risk. I don't think Josh looking to hide in Macquarie's will do him any good, (bright young likeable guy though).

[Baa_Baa]

Direct broking looks like this

That's odd, ASX.com, ASB Sec, Stockness ... all say AU$1.71

[percy]

Snoopy me ol Beagle mate have you had a good sniff through their financials' lately and looked at the size of their reverse home loan lending book and the speed its growing ? The only part of their book that really worries me is their exposure to "Harmoney" which is lending based on nothing more than one's credit rating and is quite possibly going to be anything but harmonious in a deep recession. That said, yeah, this is a real chance of going down to the bottom of its metrics trading range of 9-18 and a resulting share price of about $1.50-$1.60 in a deep recession just like most other banks have considerable possible downside risk. I don't think Josh looking to hide in Macquarie's will do him any good, (bright young likeable guy though).

You got worked up when you thought HGH had an over large exposure to dairying..................................All was well.
Also when they offered no deposit loans on new Holden cars.............................................. ...................All was well.
Snoopy got all worked up on legacy property loans............................................. ..................................All was well.
Percy does not get worked up................................................ .................................................. ...........All is well.

[Beagle]

History proves they badly underperformed the market during the dairy crisis in a very serious way.
Financials' have a long and bad track record of underperforming the market in a recession.

[SCOTTY]

History proves they badly underperformed the market during the dairy crisis in a very serious way.
Financials' have a long and bad track record of underperforming the market in a recession.

History proved it to be a great buying opportunity

[Muse]

History proves they badly underperformed the market during the dairy crisis in a very serious way.
Financials' have a long and bad track record of underperforming the market in a recession.

sentiment driven by fear & down ramping impacted hgh far more than heartlands underlying financial performance during the dairy crisis. heartland performed admirably through the dairy price downturn, with its lending concentration far smaller & secured than what was portrayed.

agree that sentiment gets impacted, it is what it is, and that will matter far more to momentum traders, than to investors.

re harmoney, not sure if you noticed but heartlands exposure to them is shrinking massively. HGH provided lines to harmoney's off balance sheet p2p business, which is being wound down, and heartland's lending to them is in run off, shrinking rapidly. if recent rates of run off continue, possible hgh's receiveables could be at or close to nil within 12-18 months, and at 31 december 2021 represented a very small fraction of hgh's book.

[couta1]

You got worked up when you thought HGH had an over large exposure to dairying..................................All was well.
Also when they offered no deposit loans on new Holden cars.............................................. ...................All was well.
Snoopy got all worked up on legacy property loans............................................. ..................................All was well.
Percy does not get worked up................................................ .................................................. ...........All is well.

Bark it up brother.

[Beagle]

sentiment driven by fear & down ramping impacted hgh far more than heartlands underlying financial performance during the dairy crisis. heartland performed admirably through the dairy price downturn, with its lending concentration far smaller & secured than what was portrayed.

agree that sentiment gets impacted, it is what it is, and that will matter far more to momentum traders, than to investors.

re harmoney, not sure if you noticed but heartlands exposure to them is shrinking massively. HGH provided lines to harmoney's off balance sheet p2p business, which is being wound down, and heartland's lending to them is in run off, shrinking rapidly. if recent rates of run off continue, possible hgh's receiveables could be at or close to nil within 12-18 months, and at 31 december 2021 represented a very small fraction of hgh's book.

You can't be serious that comments on here materially affected the share price. The market was very well aware HGH had a very serious level of exposure to the embattled dairy sector at the time and was reacting rationally to a very real risk of huge financial losses. Heartland took the risk to carry farmers through the crisis and in my view they were lucky to get away with it. My analysis shows Heartland badly underperformed the NZX50 during the dairy crisis...I suppose a lot depends upon what start and end dates you use to define this ill defined crisis. Fortunately these days the percentage of exposure to this sector is much lower relative to their expanding balance sheet.
Agree with your other points and I am very pleased to see their level of exposure to unsecured lending being dialed right back.
For the purposes of my own analysis I have already written off the value of their stake in Harmoney.