HGH - Heartland Group Holdings

[percy]

Braggart !!!.. :-)))))))

True.........
And a very happy one..!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[forest]

And thank you very much to Georgie Porgie Kerr for making shares available at half price!

I second that Balance, Georgie K has been very kind to sell HNZ at a good discount and he was so generous with the quantity he was willing to part with.

And you Balance was generous to share this info at the time, very much appreciated.

[SCOTTY]

Hi Guys

Thanks very much for all the AGM reports, particularly input from Forest, Roger and Noodles. And you as well Percy for your excellent observations even though like me you could not make the meeting. With low static interest rates, Heartland paying divies of 6 - 7% (TAX PAID) is a very attractive proposition when compared to other investments, especially with growth potential going forward. Yes, I am a very confident, happy, relaxed holder.


Regards

[Beagle]

It was good to chew the fat with you at the ASM. You should post more often mate. That was a good one. As you've suggested I think it pays at this stage to not get too enthusiastic about the prospects for early EPS accretive acquisitions or initiatives.
That said I note that HNZ is trading on a PE of only 10.75 based on the mid point of the existing forecast which is a considerably more attractive multiple than the Aussie banks and there's also the advantage of full imputation credits being available to HNZ shareholders. I hold with an accumulate more on any weakness bias.

[percy]

In a departure from my normal 'don't post' attitude, a few impressions from the ASM.
The reports from Chair Geoff Ricketts, and CEO Jeff Greenslade were formal, tightly
scripted readings that didn't deviate from the slides. So no extra take outs from
that part of the meeting.



I don't place too much hope on these 'drivers'. I don't see them as bankable goldnuggets.
More like carrots for the faithful.


Very impressed with Geoff Ricketts. Firm control of the meeting and answered questions
clearly. He seems to know the business inside out. Very postive.

A shareholder (who may have been noodles) asked a question about MTF. The answer was that
they were happy that Heartland loan fees were in accord with the guidance from the court.
Yes, still interested in MTF, but many loose threads need to be tied down first.
A shareholder proposed ditching and running from the P2P Harmoney investment. Ricketts
explained that it was an niche opportunity worth the risk. If it came off, a new
market channel, small beer if not successful.

Two shareholders grumbled about SPP raisings, where the insto's get the cream and shareholders
get scaled, and lose access to their cash. It was acknowledged that rights issues are
better, and the meeting was told it was thought a quick method of getting the cash to buy
the HER business.

Jackie Staley, proxy holder for NZSA, requested boardmembers seeking election address the
meeting. She was swiftly knocked back with 'that's not how we do it....but.... '.

On the resolution to raise the limits on board fees, there was an opinion that there
seemed to be large number of directors arranged at tables in front of the meeting,for
such a small company.
Bruce Irvine, Chair of Heartland Bank, chimed in a couple of times to expand on aspects
such as the separation of HNZ; the listed holding company, and Heartland Bank; which has
its own independent board, where regulators know who to drag, cuffed and dishevelled, on
the perp-walk if things go bad. So, there was in fact two boards of directors spread before
the meeting, along with General Council, Company Secretary and other management personnel.
Ricketts explained that the increase was to provide for a new; local aussie knowledge,
independent board member for the aussie HER business. There was some unused funds in the
current allocation but some headroom was considered appropriate. The meeting seemed satisfied
with that approach.

The fool can confirm boosting dividends by consuming two glasses of wine and some nibbles,
but Mr and Mrs Forest and Roger had a headstart because the greater fool snookered the CEO
and CFO behind their table and the lecturn for a chat, before imbibing.

Carrots vs drivers.!!
Two years ago at the agm in Ashburton the CEO spoke of the low ROE, and how they were aiming at 10%.I would have thought it would take them 3 or 4 years.Virtually achieved in 2 years.
Last year the CEO spoke of HNZ looking at acquisitions.I would have thought of some bolt-on done out of cash,say $25 to $30mil.But no they brought another up and running division when they brought the REL business.
MTF.Would be a fantastic fit,delivering a stable bank, backing dealers' finance deals.Would deliver to HNZ a lot of Ford,Honda and other very good dealers.
I note in the presentations reference to Australian banks, comparing them to HNZ.Special interest to me were ROE and sp compared with NTA.Should HNZ achieve ROE of 11% or more, I think they too will trade at 1.9times NTA.
I think Noodle's post was very much as I see it. HNZ have a habit to turning Carrots into reality!!
Jackie Staley.Last year a very nice old guy asked the same of Chairman Geoff Ricketts,who rudely told him the same "That's not how we do it."May not be the same on Suncorp Group Ltd,an $18.8 billion Australian listed Banking and Insurance company, Ricketts has been a director on since 2007,but it is certainly the way other Christchurch companies such as Ryman and Ebos do it.Maybe the year he is up for re election they may do it.!!! lol.

[iceman]

Thanks "greater fool" for a good informative post.

[Beagle]

Nice bounce today. People seem pleased with ASM, the first quarter of $11m, compares to a first half last year of $16.7m, (so indicatively up nearly 32%), and the Fitch credit rating upgrade.
Management give the impression of a very bright bunch of experienced people who are doing a very good job

[winner69]

Thanks for the ASM reports.

Just as I thought Mr Ricketts and Mr Greenslade have you besotted shareholders by the short and curlies.

Greater fool, love your 'firm control' and 'formal tightly scripted readings that didn't deviate from the slides' comments

Sounds like an evangelical outing, preaching to the converted like.

Probably Greenslade had to keep to the script, would have been easy to let slip that they were actually on track to $49m - and thats before the carrots grow into reality.

You guys are too easy on your servants.

Anyway the market seems to approve but with a bit of push could easily be 110 now.

[Beagle]

I agree that the official forecast is now looking very conservative especially after a first quarter of $11m that included significant expenses marketing the HER product.

PS bought more this morning.

[kizame]

Looking at market depth this afternoon this stock could jump again,climbing the now widening bollinger bands.
Go baby.