HGH - Heartland Group Holdings

[Arbitrage]

Within the spectrum of risk of a portfolio I would put this share in the high end at present. However when it was 50c it was worth a short term spec based on price trends and anticipated growth. As I said a few posts ago, I am fighting irrational greed and have a finger hovering over the sell button.

[Snoopy]

Within the spectrum of risk of a portfolio I would put this share in the high end at present. However when it was 50c it was worth a short term spec based on price trends and anticipated growth. As I said a few posts ago, I am fighting irrational greed and have a finger hovering over the sell button.

If I believe my own 2/3 chance of coming good, 1/3 chance of falling over, then I agree with you Arbitrage. At 50c HNZ would be a buy. You assume that if the share price suddenly heads south there will be buyers for your stake. As long as your holding is not too large, in relation to your overall wealth protection, then you will probably be right. Of course different shareholders have different risk profiles and that can influence what is 'right ' for 'the average shareholder' to do. It sounds like you have your head screwed on over this. I wish you well.

SNOOPY

[Arbitrage]

Sorry Belg, your earlier cryptic comments made you sound like you missed the buying opportunities. Well done.

[percy]

I see HNZ on a great growth path of 15 to 20% over the next 3 to 5 years .I see EPS of 10,15 and 20cents.I see PEs of 14.I see the SP trading at 2 or 3 times NTA.
So in 3/4 years time I see a SP of $2.50 to $3.paying big fat divies of 12cents or more.Buy today to enjoy 20% yields in a few years time.
History has shown us that a well run bank or finance company can be one of the fastest growing companies on the sharemarket.
Jeff Greenslade has laid the foundations for a great company.Ticked all the boxes.We are "very well positioned" to reap the full financial benefits that will be generated.

[Master98]

So in 3/4 years time I see a SP of $2.50 to $3.paying big fat divies of 12cents or more.Buy today to enjoy 20% yields in a few years time.

I sold most of my 45c shares today, only leave a few for that day you described. Finger Cross.

[percy]

Thought everyone would post I am mad.!!! But Kerr did not organise the recap of PGC to put Marac into Heartland ,for it to do charity work.The idea was to have Marac as a bank,so it would trade on higher multiplies.Kerr could have just recapped Marac and traded on.So why all the work putting Heartland together? Because there is money to be made.I figure big money.!!!! And the ground work is complete.[well just about]
belgarion.With the passage of time I think your pyramid will generate huge wealth for you.!!!!

[SCOTTY]

Thought everyone would post I am mad.!!! But Kerr did not organise the recap of PGC to put Marac into Heartland ,for it to do charity work.The idea was to have Marac as a bank,so it would trade on higher multiplies.Kerr could have just recapped Marac and traded on.So why all the work putting Heartland together? Because there is money to be made.I figure big money.!!!! And the ground work is complete.[well just about]
belgarion.With the passage of time I think your pyramid will generate huge wealth for you.!!!!

I like the cut of your gib Percy - I agree with you and have been buying as funds permitted. Regretfully ran out of $$ @ 53c. Very surprised that they went as low as they did - not complaining though.

Keep your crystal ball polished!!

Cheers

[Snoopy]

Jeff Greenslade has laid the foundations for a great company.Ticked all the boxes.We are "very well positioned" to reap the full financial benefits that will be generated.

I guess the gearing ratio would be one important numerical foundation of a company. So how does HNZ stack up?

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Criterion 3/ Gearing Ratio (Total non-risk share liabilities to total non risk tangible assets) < 90%

Once again we look at p12 ('Interim Statements of Financial Position') where we can find the underlying debt of the company: $34,808,000.

To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:

$2,380.54m - ($2,075.21m +$58.08m + $24.31) = $222.94m

By contrast the Vehicles on lease should be readily saleable so for this exercise I would count those as non-risk assets.

We are then asked to remove the intangible assets from the equation as well:

$222.94m - $21.98m = $200.96m

Now we have the information needed to calculate the information asked for:

$34.8m/$200.96m= 17.3% < 90%

Result: PASS TEST

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So perhaps Jeff Greenslade is right?

SNOOPY

[Snoopy]

So perhaps Jeff Greenslade is right?

I have had a conceptual problem with this question for a while, so this might be the time to lay the cards I have on the table, using Heartland as an example.

Criterion 3 shows that Heartland's core assets: offices staff and the tools they need to do their job, are quite conservatively financed with plenty of capital.

Criterion 5 shows that in relation to the business and home loans outstanding on the books, Heartland is if anything quite short of capital.

So, does Heartland have adequate capital or not?

SNOOPY

[Balance]

Anyone else picked up on rumor that an overseas bank is looking to JV with HNZ?