HGH - Heartland Group Holdings

[winner69]

Chris Lee's take on Heartland, (emphasis added in bold by myself)



If they do pay a fully imputed dividend of 7 cps next year the dividend hound in me calculates that at a gross distribution of 9.72 cents, (7/.72) and based on an ex divvy price of 91.5 cents (95-3.5cps divvy due shortly), investors are looking at a gross return of 10.62% ...with more growth in the years following given reasonable trading conditions and that ladies and gentlemen is the power of investing in a N.Z. owned bank with full imputation credits. Begs the question of why bother backing Australian owned banks doesn't it !! Did I add enough emphasis to those superior interest rate margins above

In today's news http://www.nzherald.co.nz/business/n...ectid=11317538

Roger - commentary was from Michael Warrington at chrislee.co.nz

As I posted yesterday high margins are good but sound better in real terms than the differential basis used.

Like borrow at 5.0% and lend at 8.35% (for the equity release stuff) would be seen as a 3.3% margin

But it is the same as say Rod Duke buying something for $100 and selling it for $167 (rogues both of them?) but Heartland probably doesn't have the same shrinkage problem as Duke

We'll get the shareprice up somehow Roger .... pumping is more than just saying they do what they so they will do and well positioned and just hoping the shareprice will rise

It is our job to get some hype and excitement out there with some real numbers

I haven't made much at all (stuff all in fact) on HNZ since buying and I getting grumpy

[Beagle]

Have patience my friend. Its a nice steady slow burner, just sit back and plan how to spend the upcoming dividend

[iceman]

Have patience my friend. Its a nice steady slow burner, just sit back and plan how to spend the upcoming dividend

Mate, for a conservative accountant I thought you'd be more disciplined and sign up to the DRP and let Jeff put your divies to good use again and again

[percy]

Had a chat with Bruce McLachlan from that other small BANK the o day. He seems a good guy and has a pretty clear vision of where he wants to take his BANK. Like Greenslade he has had plenty of experience as wel

I like the cooperative model .....fits with the principled side of me. Gave them some more dosh today ...at least greedy shareholders won't be making any money of it.

The way the world is heading and how generational values are deveoloping i wouldnt be surprised to see a rise in these types of cooperatively owned businesses ....not this year but in due course

Heck where is the occupy meeting

Above was posted 19-12-2012.
Heartland share price that day was 70 cents.
Well Grumpy one, in hindsight we can work out how costly your lack of foresight has been.Rather than chewing the fat with your Co-Op mate you should have been buying Heartland Bank shares.
You have missed 35.7% rise in share price.And you would now be enjoying 10% net dividends.

[Beagle]

Mate, for a conservative accountant I thought you'd be more disciplined and sign up to the DRP and let Jeff put your divies to good use again and again

LOL mate. Haven't you noticed I like a good beer or three using my dividends

[winner69]

Above was posted 19-12-2012.
Heartland share price that day was 70 cents.
Well Grumpy one, in hindsight we can work out how costly your lack of foresight has been.Rather than chewing the fat with your Co-Op mate you should have been buying Heartland Bank shares.
You have missed 35.7% rise in share price.And you would now be enjoying 10% net dividends.

Oh dear Percy that's good of you digging back into the past.

So HNZ up 35.7% since Dec 2012 - NZX50 up 30.2% in same period

As many gurus say "a rising tide lifts all boats . Heartland sort of been just average hasn't it? OK I'll concede its been slightly above average.

I done better than 35% in that time so no regrets not holding HNZ. However most (nearly all) of those that contributed to the gains have stopped increasing in price. Some have been sold.

A lot of that cash now in HNZ primarily due to the growth prospects and potential rerating upwards as well. This underpinned by a solid dividend and probably little downside to the shareprice. But it's really capital growth I want. Wasn't much choice and HNZ won the selecting race b default really, most other things did not meet set criteria.

But I not emotionally tied to it and unless Heartland starts performing to MY expectations out it will go.

Bruce still doing good things. Coop have more members (customers) than before and steadily collecting more by the day. They will continue to do well without greedy shareholders getting in the way.

[winner69]

That $42m-$45m guidance is as weak as. Wonder who they trying to kid here, wimps.

My deep research and full reading of the annual results presentations (including what was between the lines) has resulted in me doing one of those NPBT Bridges for FY14 to FY15. Components mainly impacts of lending growth, a column for new HER loans, a bit of improved interest margin and keeping costs down.

After allowing for tax my forecast NPAT for FY15 is $49.2m with an upside case of $50.6m.

My view meeting guidance of $45m is failure on their part.

Come ASM time I bet Jeff will just confirm the $45m guidance That would be disappointing and doesn't really tie in with the words of the recent announcements.

[percy]

Gee Whiz we are on very different pages.!!!
This years's net profit was $36mil,the guidance of 42mil to 45mil is up between 16% and 25%.Your 49.2mil is up 36.6%!!!
PEG ratios .PE 10.7 growth 16% = 10.7 divided by 16 gives a very respectable .67 and growth at 25% gives 10.7 divided by 25 a fantastic .428
and if you factor in 7 cents dividend the PEGD are; 10.7 divided by 23 [growth 16 plus 7 dividend] =.465 and growth at 25% we get 10.7 divided by 32 [25 growth plus 7 dividend ] gives an incredible .334.
So I am more than happy with the company's guidance.

[Beagle]

Gee Whiz we are on very different pages.!!!
This years's net profit was $36mil,the guidance of 42mil to 45mil is up between 16% and 25%.Your 49.2mil is up 36.6%!!!
PEG ratios .PE 10.7 growth 16% = 10.7 divided by 16 gives a very respectable .67 and growth at 25% gives 10.7 divided by 25 a fantastic .428
and if you factor in 7 cents dividend the PEGD are; 10.7 divided by 23 [growth 16 plus 7 dividend] =.465 and growth at 25% we get 10.7 divided by 32 [25 growth plus 7 dividend ] gives an incredible .334.
So I am more than happy with the company's guidance.

If I may intercede in this debate I think where W69 is coming from is EPS guidance is only up from a weighted average of 9 cps in 2014 to 9.3 cps for 2015 based on the mid point of the forward guidance.
I'm comfortable with moderate EPS growth this year because I know its takes time for new business ventures, (HER), to gain traction and I remain confident of stronger EPS growth in 2016 and beyond.
That and the gross dividend yield of 10.62% I mentioned this morning with prospects for future dividend growth in 2016 and beyond means....you guessed it, we are well positioned

Also its worth noting that if they meet the mid point of 2015 EPS guidance 9.3 cps then based on an ex divvy price of 91.5 cps the stock is on a forward PE of only 9.8, so there's definitely room for the stock to appreciate Now go and take your gloves off and have a rest in your respective corners LOL.

[winner69]

Gee Whiz we are on very different pages.!!!
This years's net profit was $36mil,the guidance of 42mil to 45mil is up between 16% and 25%.Your 49.2mil is up 36.6%!!!
PEG ratios .PE 10.7 growth 16% = 10.7 divided by 16 gives a very respectable .67 and growth at 25% gives 10.7 divided by 25 a fantastic .428
and if you factor in 7 cents dividend the PEGD are; 10.7 divided by 23 [growth 16 plus 7 dividend] =.465 and growth at 25% we get 10.7 divided by 32 [25 growth plus 7 dividend ] gives an incredible .334.
So I am more than happy with the company's guidance.

Where's your ambition Percy, and theirs

Maybe need more woman and young people on this stodgy old goods train to turn it into a an express

Haven't heard back about diversity but they need to say something in the Annual Report. Probably have to wait to then.