HGH - Heartland Group Holdings

[ziggy415]

I could have applied for 3 lots but chose not to and I was not complaining and still happy with my decision.

With no announcements pre profit I figured no surprises forth coming so bought $200,000 worth at $2.05 .2 weeks before spp. Should of known when I drove shares up someone kept unloading more at lower price.....lucky no insider trading going on, so they got no money from me

[Snoopy]

With no announcements pre profit I figured no surprises forth coming so bought $200,000 worth at $2.05 .2 weeks before spp. Should have known when I drove shares up someone kept unloading more at lower price.....lucky no insider trading going on, so they got no money from me.

So what are you saying? You bought $200,000 worth from your broker at $2.05. Watched someone unload a whole lot of shares at a lower price. Realised you had been suckered. Refused to pay the broker for your purchased shares at the rip off price, and are now on the run? Blimey! Yet some still wonder how second tier lenders in NZ carry such a dodgy reputation!

SNOOPY

[mfd]

I could have applied for 3 lots but chose not to and I was not complaining and still happy with my decision.

No problem there, we all make our own decisions for our own reasons. I was referring to the prevailing mood on here about how hard done by small shareholders were by the placement compared to the SPP, but it looks to me like the SPP was positioned quite well, satisfied the volume demands of shareholders and gave us a small discount to boot.

[percy]

BINGO.
FULL HOUSE.
100% in the placement.
100% [plus ?] in the SPP.
"Well positioned".

[Snoopy]

What demand there was has just been sucked up fully by the under subscribed spp.

I wonder if some applied for more thinking they would get scaled heavily? and now need to in fact sell because they got a full feed when they only wanted a small one

EPS forecast flat for next year and we are (apparently) heading into a big fat recession. tough, very tough

Well, as someone relatively new to the Heartland express (bought my first ticket in January 2019), and with an interest in building up my holding I put some cash in the Heartland begging bowl, albeit not the full $50k. I had assumed the issue would end up scaled. But I still have some cash in my own dog bowl should the post capital raise share price sail south. Nevertheless, it only ended up $1.2m short. The board might have to buy their own coffees and small eats at the board meetings this year, and maybe move that board meeting they were planning in Australia back to NZ. Jeff may even have to forego a haircut. I am sure someone in the secretarial pool will lend him a rubber band to keep any 'pony tail' nice and neat for the AGM. But I don't see the 'capital shortfall' having any more of an effect that that.

I am currently sitting on an average buy price of $1.47 per share (post capital raising). I know for some of you Heartland long termers, that would be a pretty lame average entry price. But it ticks the 'Mr B' value box of around $1.50 ( buy HGH ie 9 times ie 9x 16.2 = 150 ...). So for someone late to the Heartland party, I am happy.

I have been diligently building up my shareholding through the DRP too. A few acquired last dividend time at $2.11. The dividend before that, a few more at $2.27. Hey, just a minute - I think that means I have just lost money! What was I thinking! Have I been caught up in the personality cult of Jeff? As his greatest ever supporter (a fact Percy will surely vouch for), surely not!

Nevertheless with Sir John Anderson now dead, our Jeff must surely be NZ's greatest living banker. And with the new push into Australia he is sure to 'digger' (see what I did there) we ANZAC shareholders out of any future financial hole. Jeff certainly could have been, might be in a while and certainly should be Heartland's greatest ever leader (except for the other Heartland Geoff I suppose ;-P).

SNOOPY

[Muse]

RAWZ per usual raises some good points...last few SPPs were well oversubscribed (like EBOS) so many would have chucked in large amounts thinking they would get scaled, and won't, and now may resize once receiving their (presumably) full allocation. Not totally surprised to see it come in just under the target $70m as a lot of investors managed to participate in the placement (not just the big boys). Near $200m capital sucked into HGH so could see some weaker demand and some portfolio regiging in coming weeks.

Personally satisfied with the $1.80 placement and $1.7674 SPP purchases. At the SPP price, that's a FY23 PE of 10.9x, yield of 6.85%, price to book (FY22 book adjusted for capital raising) of 1.24x, and prospective FY23 consensus P/B of 1.16x. That doesn't mean there won't be some volatility of the next few weeks (and indeed as things play out in this macro environment) but I found these to be sensible metrics. Each to their own, and do your own research.

[percy]

Thanks for posting the brokers' forecast figures.
Very modest ratios in my opinion.

[RTM]

Thanks for the Table FM.
Appreciated.

[Snow Leopard]

One of the joys of having a 'no more than 15% in one share rule' is the joy of breaking it.

So now should I be alokdhir's worst nightmare and rebalance the portfolio?


Our Endangered World

[RTM]

One of the joys of having a 'no more than 15% in one share rule' is the joy of breaking it.

So now should I be alokdhir's worst nightmare and rebalance the portfolio?


Our Endangered World

Nah...there are better ways to rebalance it.
Build up the others ?
My HGH has dropped back ...not quite sure to what yet...unfortunately not quite in the way I would have liked...with the SP dropping over the months....hoping this doesn't continue. So far so good...holding around 1.80 is good.