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09-06-2014, 09:10 PM
#3081
Originally Posted by Cool Bear
Indeed, let's have some fun. Hit $1 in about 2 weeks, say 25 June but close or stay above $1 in early August... 7 August.
I look forward to shouting you an evening of free beer at Trevinos if you are right.!!!
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10-06-2014, 09:03 AM
#3082
Please guys don't put the voodoo spell on these shares I hope they stay where they are,because they seldom do when i say that.
But buyers seem to be looking a bit further ahead now and with the big pluses of medium PE and growth through aquisition prospects,starting to continue the slow but steady trend upwards.
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10-06-2014, 09:15 AM
#3083
Member
Originally Posted by percy
I look forward to shouting you an evening of free beer at Trevinos if you are right.!!!
Percy, my crystal ball had a few coffees too much yesterday morning but I will still pencil down free beer in my calendar for mid August. See you then.
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10-06-2014, 10:22 AM
#3084
Member
Originally Posted by percy
I look forward to shouting you an evening of free beer at Trevinos if you are right.!!!
Well, it is certainly a good start this morning - trading 91c and a strong interest from buyers to boat!
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10-06-2014, 02:51 PM
#3085
Bad Debts HY2013
Originally Posted by Snoopy
I now move to the PGW documentation relating to the sale of PGF which was discussed at the PGW special general meeting of FY2011
Northington Partners suggested that investors should look for a few more signs of improvement. One of these is a reduction in bad debts. In the HY2012 commentary we learn:
"New impaired and past due loans over 90 days were $88m which was 4.2% of net finance receivables as at 31st December 2011. This is down from $101m and 5.0% of debts as at 30th June 2011."
Bad debts were at least going in the right direction.
Under the impairment section of the interim report for 31st December 2012 we learn.
"Net impaired,restructured and past due loans over 90 days were $80.2m (or 3.9% of net finance receivables – Net Impairment Ratio) as at 31 December 2012 – down from $90.5m (or 4.4% of net finance receivables) as at 30 June 2012. The level of impaired, restructured and past due loans are primarily due to the legacy non-core property book and are expected to continue to reduce as a percentage of total assets as lending in the core business grows and the non-core property book runs down."
It is interesting to see that the historical bad debt situation of 31st December 2011 has been revised upwards (from 4.2% to 4.4%) with the benefit of hindsight.
"The Net Impairment Ratio on the core business (excluding the non-core property book) was 1.7% as at 31 December 2012, compared to 1.8% as at 30 June 2012"
A new thing for Heartland here in quoting the bad debts only for their 'core' business. I am always suspicious when businesses introduce new metrics like this. In this case the motive is obvious - trying to convince shareholders old bad property debt is a legacy issue. The problem is closing one eye to make half the debt go away, doesn't actually cause half the bad debt to go away.
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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10-06-2014, 03:13 PM
#3086
Bad Debts HY2014
Originally Posted by Snoopy
Under the impairment section of the interim report for 31st December 2012 we learn.
"Net impaired,restructured and past due loans over 90 days were $80.2m (or 3.9% of net finance receivables – Net Impairment Ratio) as at 31 December 2012 – down from $90.5m (or 4.4% of net finance receivables) as at 30 June 2012. The level of impaired, restructured and past due loans are primarily due to the legacy non-core property book and are expected to continue to reduce as a percentage of total assets as lending in the core business grows and the non-core property book runs down."
It is interesting to see that the historical bad debt situation of 31st December 2011 has been revised upwards (from 4.2% to 4.4%) with the benefit of hindsight.
"The Net Impairment Ratio on the core business (excluding the non-core property book) was 1.7% as at 31 December 2012, compared to 1.8% as at 30 June 2012"
A new thing for Heartland here in quoting the bad debts only for their 'core' business. I am always suspicious when businesses introduce new metrics like this. In this case the motive is obvious - trying to convince shareholders old bad property debt is a legacy issue. The problem is closing one eye to make half the debt go away, doesn't actually cause half the bad debt to go away.
New tactics for the HY2014 report. The word 'impairment' isn't even mentioned in the text, which is I suppose another way to make any impaired loans go away.
In the table on page 4 there is at least a nod to 'impaired asset expense' down to $3.3m (HY2014, ended 31st December 2013) from $5.3m in the corresponding prior period (HY2013) and $22.5m in the full year to 30th June 2013. By simple subtraction the bad debt expense for the period 1st January 2013 to 30th June 2013 ( 2HY2013 ) was $22.5m - $5.3m = $17.2m.
'Impaired Asset Expense' is code for having lost all hope. Almost no chance of getting the money back. 'Restructured' and 'past due loans' do not fall under that category. So comparisom with the previous comparable period are - deliberately? - difficult to make.
SNOOPY
Last edited by Snoopy; 10-06-2014 at 03:14 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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10-06-2014, 03:43 PM
#3087
Bad Debts HY2014 part 2
Originally Posted by Snoopy
New tactics for the HY2014 report. The word 'impairment' isn't even mentioned in the text, which is I suppose another way to make any impaired loans go away.
In the table on page 4 there is at least a nod to 'impaired asset expense' down to $3.3m (HY2014, ended 31st December 2013) from $5.3m in the corresponding prior period (HY2013) and $22.5m in the full year to 30th June 2013. By simple subtraction the bad debt expense for the period 1st January 2013 to 30th June 2013 ( 2HY2013 ) was $22.5m - $5.3m = $17.2m.
'Impaired Asset Expense' is code for having lost all hope. Almost no chance of getting the money back. 'Restructured' and 'past due loans' do not fall under that category. So comparisom with the previous comparable period are - deliberately? - difficult to make.
On page 5 of the interim report there is a note (iv) to this effect:
"Total non-core property assets reduced by 19% in the six months up to 31st December 2013. As at this date, non-core property assets comparised net receivables of $25.6m and investment properties of $61.5m. We remain confident that future earnings will not be affected by these assets."
From the Interim Balance Sheet (p9) 'Finance Receivables' were $1,905.89m.
So "problem property assets" represent:
($25.6m+ $61.5m) / $1,905.89m = 4.6% of total finance receivables.
This is the worst result in two years for Heartland in its current form, topping the 4.4% from 31st December 2011. But that figure also included 'restructured ' and 'past due' loans.
Go to note 11 of the HY2014 report and you will find restructured assets of $3.994m on the books, together with past due loans of $19.518m. Now we can work out the total "Net impaired,restructured and past due loans over 90 days" at the last balance date:
($25.6m+ $61.5m) + $3.994m + $19.518m = $110.612m
Divide that by balance sheet receivables and you get the total doubtful debt ratio.
$110.612m / $1,905.89m = 5.8%
Not a pretty figure. No wonder HNZ changed their reporting metrics so they didn't have to tell you shareholders about it.
SNOOPY
Last edited by Snoopy; 11-06-2014 at 02:02 PM.
Reason: Add title
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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10-06-2014, 03:49 PM
#3088
Originally Posted by Snoopy
Not a pretty figure. No wonder HNZ changed their reporting metrics so they didn't have to tell you shareholders about it.
They fooled S&P.
If only if it wasn't for that dog, they would have got away with it.
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10-06-2014, 04:47 PM
#3089
"Total non-core property assets reduced by 19% in the six months up to 31st December 2013. As at this date, non-core property assets comparised net receivables of $25.6m and investment properties of $61.5m. We remain confident that future earnings will not be affected by these assets."
Speaks for itself. You either believe the Directors or you don't and in the latter case you probably wouldn't own the shares.
Disc Happy to hold, every Bank has a few fleas in the closet.
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10-06-2014, 05:40 PM
#3090
Comparing Apples with Oranges can drive you Bananas
Nice try Snoopy,
There are invalid assumptions, lack of understanding of what the figures represent, and general adding up of the wrong things in your posts.
Fortunately putting the wrong data in results in the wrong answer coming out, and they are doing a lot better than you [are determined to] believe.
Best Wishes
Paper Tiger
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