HGH - Heartland Group Holdings

[percy]

Heartlands Interest Rate Risk:

Net & Accumulative positions at 31-Dec-13

0-3 Months: $523M $523M
3-6 Months: (224M) $299M
6-12 Months: ($260M) $38M
1-2 Years: $144M $182M
2+ Years: $74M $257M

and for comparison Net & Accumulative positions at 31-Dec-12

0-3 Months: $351M $351M
3-6 Months: (168M) $183M
6-12 Months: ($288M) ($105M)
1-2 Years: $261M $156M
2+ Years: $101M $257M

What does this mean?
The periods represent the time frame in which the bank can change the interest rate it receives on loans and pays on deposits and the first column the amount that loans exceeds deposits for that time frame.

So in a hypothetical situation where they cut the interest rate on 31-Dec-12 across the board by 1%pa then after three months the interest received on loans will have dropped by $300K per month (approx $351 * 1% / 12) more than the interest paid on deposits. (So this is a net reduction in revenue)

Obviously if the across board change was a rise of 1% then they would be a $300K per month (still approx) gain in revenue.

In the real world of course it is a lot more complicated than these simple scenarios.

Best Wishes
Paper Tiger

In the real world the head of treasury at any bank with be altering deposit rates to match maturities,and credit demand,and where he sees future interest rates.

[Cool Bear]

Really this is totally beyond my understanding,but what is interesting is that two obviously knowledgeable balance sheet analysts get two different perspectives.If that is the case and it is not that simple to come to a conclusion,how then would two different auditors view the information? Probably they work to the same rules I guess.
This is all taking into account though that you are both viewing the same numbers.

As someone who have a bit of accounting knowledge (in my previous life), I can say that PT is the correct one in this case. As Percy mentioned, PT has a record for being correct.

[Snow Leopard]

There's our man again!

Ensuring that the last sale is way below the VWAP (Volume Weighted Average Price) for the day!

Do they think we're stupid? ... Probably not. Just the "mums and dads".

That said, isn't it time this behaviour was investigated?

Todays' last trade that set the low was at 2pm with two off market trades at a high price after that.


In the last 3 months (62 trading days):

Close = low (low<high): 27
Closes = high (low<high): 24
Close = low = high: 10
Low < close < high: 1

Best Wishes
Paper Tiger

[winner69]

Todays' last trade that set the low was at 2pm with two off market trades at a high price after that.


In the last 3 months (62 trading days):

Close = low (low<high): 27
Closes = high (low<high): 24
Close = low = high: 10
Low < close < high: 1

Best Wishes
Paper Tiger

So steady and so boring eh Tiger

Me a bit bored as well so looked at the last 60 days as well

Those 62 days price moved from 88 to 89, Lowest close 85 (once) and highest close 90 (4 times)
Average has been 88
Today at 89 one of the better days, majority of closes have been 87/88 as below

Frequency
$0.85..... 1
$0.86..... 9
$0.87..... 22
$0.88..... 15
$0.89..... 9
$0.90..... 4
$0.91..... 0

Watching HNZ shareprice is like watching paint dry .... so exciting

If anything a slight upward bias to the price .... but only slight

Best thing that could have happened is maybe you collected a dividend along the way .... yes

Sorry guys .... not very exciting .... at lest it ain't gone down

Might buy one seeing it so well positioned

[Cool Bear]

slow and steady with a slight upward bias is all good

[winner69]

slow and steady with a slight upward bias is all good

Its better to own banks than to put money into them

However way HNZ is going it maybe better to put money in then to own it

Hope the first statement comes true .... sometime

[percy]

The past 60 days have seen the following results for bank share prices.
ANZ - 0.003%
CBA + 4.9%
NAB -6%
WBC -0.06%
Heartland + 1.1%
Nice and steady.All the time getting "more runs on the board." And what makes it truly exciting for shareholders is the fully imputated dividend.[and great dividend reinvestment plan.]
And winner69 the dividend is better than the deposit rate,so that statement holds true.And I expect Heartland's growing earnings will see a steady increasing dividend.

[winner69]

Fair enough Percy

Bit worried about that Interest Rate Risk though

[kizame]

The past 60 days have seen the following results for bank share prices.
ANZ - 0.003%
CBA + 4.9%
NAB -6%
WBC -0.06%
Heartland + 1.1%
Nice and steady.All the time getting "more runs on the board." And what makes it truly exciting for shareholders is the fully imputated dividend.[and great dividend reinvestment plan.]
And winner69 the dividend is better than the deposit rate,so that statement holds true.And I expect Heartland's growing earnings will see a steady increasing dividend.

So looking at the average PE ratio of those four banks 14.54
HNZ should have a share price based on $34 mil net prof of $1.06 so that providing those other share prices don't retreat too much,is our immediate target.

[winner69]

So looking at the average PE ratio of those four banks 14.54
HNZ should have a share price based on $34 mil net prof of $1.06 so that providing those other share prices don't retreat too much,is our immediate target.

If it was that easy mate

Why not use regional US banks as a benchmark ....PE of 22 ......gives HNZ a value of 160 odd

That should be the target I reckon