HGH - Heartland Group Holdings

[BlackPeter]

Well...that really rocked the share price. Wonder what a slightly negative report might have done ?
High expectations of this stock. Hasn't disappointed us yet. (Thanks Percy )

Rocking? I see just two trades with 95 cents and than back to 94. What numbers are you looking at?

[hummerh40]

Rocking? I see just two trades with 95 cents and than back to 94. What numbers are you looking at?

Bit of sarcasm mate

[winner69]

Yes, great to see. Hopefully one day they will be on par with the major banks (somewhere between 14-20% ROE I believe). Like many other shareholders I have very high hopes for the reverse mortgage business over the next couple of years.

ROE 14%-20% eh

Hypothetical question: What would you say if someone offered you an investment with a promised real return of close to say 17% over many years?. You mighty say: “How much can I buy?” or like most sensible people: “What is the catch?”

Think about it

[percy]

ROE 14%-20% eh

Hypothetical question: What would you say if someone offered you an investment with a promised real return of close to say 17% over many years?. You mighty say: “How much can I buy?” or like most sensible people: “What is the catch?”

Think about it

Always a lot of fun looking for the next EBO,MFT or RYM.
Even more fun holding onto that share,when you have found it.
As early investors in EBO,MFT and RYM will tell you, you have to be patient.
Yet those three companies have all been very open about where they want to go, and how they are going to get there.
Sound familiar????

[winner69]

So Heartland "assessing possible capital management options to improve ROE,"

interesting

wonder what they have in mind?

[winner69]

Percy, you know why (the rationale) they hell bent on making excessive returns on equity?

Save me contacting Jeff. He can't not respond now I am a shareholder

[percy]

So Heartland "assessing possible capital management options to improve ROE,"

interesting

wonder what they have in mind?

You need your long memory cells working here Winner69.
When everyone was going on about cash issues,rights issues,lack of capital,etc,I posted that HNZ talked about returning excess capital if they did not require it.!!!!!
Sound familiar?????
They have proved they can raise capital in a big hurry,so why have excess doing nothing?

[percy]

Percy, you know why (the rationale) they hell bent on making excessive returns on equity?

Save me contacting Jeff. He can't not respond now I am a shareholder

I can't answer that as I am not a banker.
Heartland [Jeff Greenslade] have always stated they want to be "the best" bank,not "the biggest."
Maybe they see ROE as benchmark? I know I prefer to look at ROE and EPS rather than loan book growth.

[winner69]

I can't answer that as I am not a banker.
Heartland [Jeff Greenslade] have always stated they want to be "the best" bank,not "the biggest."
Maybe they see ROE as benchmark? I know I prefer to look at ROE and EPS rather than loan book growth.

Its just that going from current levels of ROE to say 15% could mean taking more 'risks' and increased leveraging of the balance sheet

[percy]

Its just that going from current levels of ROE to say 15% could mean taking more 'risks' and increased leveraging of the balance sheet

Agreed.Yes,however they have been recycling money from low margin lending into more profitable "niche " areas.
All the time they are also wanting to improve their credit rating,and are mindful of equity and other ratios The Reserve Bank require them to keep in order.
As for greater "risks" I think their record of "provisions","overdues" etc is most acceptable.
Getting to 10% was a target set. At the time it was an aggressive target,.I think the easy fruit has been picked,ie going from 2% ROE to 9%,yet today's announcement Jeff Greenslade did say;"We will continue our product centric strategy focussing on higher yielding products where a leading market position can be achieved.".