HGH - Heartland Group Holdings

[Banksie]

Confirmation that the planned acquisition has no affect on their Standard & Poor and Fitch credit ratings.
https://www.nzx.com/companies/HNZ/announcements/247068

Fitch give a nice summary of what they perceive as the potential risks:

As most of New Zealand's population holds its wealth and future pension in property, Fitch believes there is reasonable potential for further growth. Potential risks are mostly, but not exclusively, of an operational nature. HBL has put in place tight guidelines to limit these risks and protect its reputation. Fairly strict loan-to-value (LVR) limits should protect HBL from any potential house price corrections. However, longer life expectancy could create repayment pressure.

As the transfer will take place over time, the impact on HBL's capital should be manageable, and Fitch expects HBL will improve its retained earnings. The loan book is well seasoned and diversified, with Sentinel's average LVR standing at 32.7% in December 2013

[winner69]

Mike what's his name on his weekly note on chrislee.co.nz is suggesting inside trading / leaks last week that saw the rise in hnz shares

Probably came from other side as hnz run a really tight ship

[Harvey Specter]

Mike what's his name on his weekly note on chrislee.co.nz is suggesting inside trading / leaks last week that saw the rise in hnz shares

Probably came from other side as hnz run a really tight ship

Would have been lots of professional firms involved too -2 accountants, lawyers, investment banks - each with a big team.

[1leon]

Would have been lots of professional firms involved too -2 accountants, lawyers, investment banks - each with a big team.

With $15m going in placements there plenty are more than professional advisers involved.

[percy]

http://www.interest.co.nz/personal-f...e-been-supply-

Surfersteve,
thank you for posting the very interesting article.Reading it together with the Heartland presentation on the acquisition makes me think the acquisition is a cracker.!

[percy]

we are looking at putting up a new kind of forum which combines data and forums where the threads are based on a system that filters content based on types, if a posting is considered to be utter rubbish by the members it is voted on. statistical information content is not voted on but general rubbish is voted on and its type if not statistical is then ranked into a lower display type and can then be filtered out by members creating there own views of the forums where the junk can be removed to a lower lever of display... i very rarely come on these forums as the content is simply to varied... so often i just post a silly thread and remove it when protest mounts ...

I lost a lot of money and my confidence during GFC.
Posters on NZ thread such as Phaedrus,Papertiger, Lizard,Ratkin,Winner69,Xerof,StrangerDanger,Sauce, Forest,Balance,Roger, and others have helped me regain both my confidence and my money.I will also mention the fantastic help I have received on Australian threads.
Yes,some of the recent posters are a concern [some I don't read],yet overall I think I am still learning and making money by reading most posts.
What does concern me is the posters who leave after being subjected to stupid comments.

[percy]

Offcourse I forgot to thank Sparky The Clown and Belgarion and the many others whom I have learnt so much from.

[Master98]

what is figure of NTA after accquition? i guess would be between $0.95-$1.0.

[Master98]

Thanks Snoopy's detailed and high level analysis of HNZ financial position give me more confidence of buy in this stock again, methinks HNZ should worth of at least 90 cps if 2014 earnings guidance of 34m-37m is true. Finger Cross.

I know Snoopy is not your guys favourite, but his thinking from different angle did valueable, I bought into HNZ at $0.85 and did enjoy my decision.

[Snow Leopard]

what is figure of NTA after accquition? i guess would be between $0.95-$1.0.

Edited because I got the original NTA wrong by about 4cps (Deferred tax asset is not tangible?)

I think that is too high.

NTA at 30 June 2013 was about $0.85 (originally said $0.89!)
Add in $16.5M profit 4.2cps and subtract the 2.5cps dividend and call it $0.87 at 31 Dec 2013

So roll forward another three months to 31 Mar 2014 and say 2.1cps profit and subtract 2c dividend paid (cash and new shares) so still $0.87 ish.

Acquistion is a swap of cash for other assets possibly including some goodwill?

So call it around $0.87.

Roll forward again to 30 Jun 2014 and add another 2.1c profit and NTA will be $0.88 to $0.90

Best Wishes
Paper Tiger