HGH - Heartland Group Holdings

[alokdhir]

Yes ...last two days it has done well ...Not sure it has bottomed out or just bouncing in relief of relentless selling from 2.10 to 1.80 ...

But looks it has found some support here ...how long ? ....Only God knows ....

[alokdhir]

HGH still have some legs ...seeing depth ..getting better not worse ...

W69 will know better ...if good news coming as its almost year end for them ...though no upgrade or downgrade happened so far ...not much time left to let us know

Otherwise they just meeting old guidance and maybe 7.5 Cents divvy ...next year guidance will be worth watching ...100Mil or conservative 98 ??

[mike2020]

Yeah maybe 8+ cents div with nothing but a sound future to talk about. Very depressing, where is my $1.53 I was led to expect?

[Beagle]

Early days in this recession. Lets see how things go...

[winner69]

For what's it worth here's the link to that report on NZ banks the media mentions when sort of saying banks make excessively high records profits.

Report sort of meaningful re Heartland but remember that they are a de facto bank …..really a finance company.

Yes it shows Heartlands high NIM (relative to others) but this is offset by a significantly higher debt provisioning ratio ....reflection of lending.

https://assets.kpmg/content/dam/kpmg...march-2022.pdf

[percy]

For what's it worth here's the link to that report on NZ banks the media mentions when sort of saying banks make excessively high records profits.

Report sort of meaningful re Heartland but remember that they are a de facto bank …..really a finance company.

Yes it shows Heartlands high NIM (relative to others) but this is offset by a significantly higher debt provisioning ratio ....reflection of lending.

https://assets.kpmg/content/dam/kpmg...march-2022.pdf

Thanks for the link.
Always an interesting read.

[winner69]

A little bit of history of reverse mortgages in NZ …….murders and everything …from Chris Lee


His involvement in establishing the concept of reverse mortgages illustrates this.
The Moses family had a weekend bach in Raumati South beside the Thomas family (Gene and Eugene) who had established the last-resort lender, Invincible Assurance, itself some version of an insurance company.

The Moses and Thomas families hatched up the idea of marketing reverse mortgages in New Zealand. Given there was no competition the interest on these early-day mortgages was often nearer 20% than 10%.

Invincible Assurance, owned by the Thomas family, would provide the funding. Moses would do the selling.

Of course this plan barely had started before the two Thomas men, father and son, were shot dead in their office on The Terrace in Wellington, an event unlikely to be unrelated to the sector of the moneylending market in which they operated.

Later the banks picked up the reverse mortgage idea and today Heartland Bank dominates this market, lending at a credible interest rate, and enduring almost zero bad debts.

The idea is now mainstream.

The Moses belief that exam papers could give credibility to unit trust salesmen had a shorter life. Academia never could replace knowledge, experience, and integrity.

Nor was he successful when Moses recruited completely untrained and unsuitable people in his Reeves Moses Hudig selling brand, 20 years ago.

Like Money Managers and Vestar his brand became known as high on selling, low on knowledge. His recruits have mostly dropped off, none, that I can recall, ever achieving capital market respect.

For all his failures Moses, like (Somers) Edgar and Syms, contributed to the ultimate decision to license advisers, and regulate them, their model being so dangerous that the then Commerce Minister Simon Power had to react, after years of ugly, lazy selling practices.

That has been a sane outcome. Moses has a tangential responsibility for the change for the better.
The behaviour of businesses like his undoubtedly had cost investors hundreds of millions, but the outcome has been that these failures led to improvements for which all investors should be grateful.

Moses was a mover and shaker in a sector that needed shaking.

https://www.chrislee.co.nz/taking-stock

[Habits]

Theres a blast from the past, radio host and investment advisor Doug Somers-Edgar. Wonder where he is now

[dubya]

Theres a blast from the past, radio host and investment advisor Doug Somers-Edgar. Wonder where he is now

Last I heard he was (semi?) retired and living in a stunning sea side cliff top mansion at Browns Bay, Auckland.

[Habits]

Last I heard he was (semi?) retired and living in a stunning sea side cliff top mansion at Browns Bay, Auckland.

Not surprising, he had a sharp mind and gifted tongue. Though made the mistake of selling out of his rentals late 80s early 90s which was about the time we started buying. His words of "the only problem with rentals are the tenants" still ring. I checked google, it looks like he got caught up in the GFC meltdown