HGH - Heartland Group Holdings

[winner69]

If HNZ got a speeding ticket it would be very very hard for them to keep a straight face and say 'We have no idea of why the share price has increased but we remain fully compliant with all disclosure rules'

They will come clean soon and admit current guidance is really a bit stupid

[brend]

I'm interesting in knowing what exposure the bank has the rural/farming sector?? Given Fonterra's decreases in payouts we have yet to see the ramifications for farm owners just yet...

[winner69]

I'm interesting in knowing what exposure the bank has the rural/farming sector?? Given Fonterra's decreases in payouts we have yet to see the ramifications for farm owners just yet...

Percy had a post about this a week or so ago .... something like farmers wont be going broke and while dairy might be a struggle other farmers (beef, sheep etc) are doing very well at the moment.

HNZ lending is very diversified (the only time they use this word) and not particularly concentrated in any one area. Anyway get behind they might charge penalty interest ... that be good

Maybe Percy can repost his thoughts

[NZSilver]

I'm interesting in knowing what exposure the bank has the rural/farming sector?? Given Fonterra's decreases in payouts we have yet to see the ramifications for farm owners just yet...

yeh, they will prob need to borrow more money...inst this good for banks who sell debt? only a very small percentage will default.

[Bjauck]

I guess it depends on how long the downturn will last and the continued strength of the Chinese market. Given the expansive nature of NZ trust law and the prevalence of trusts in NZ, if a farm becomes insolvent HNZ may find the farms assets and the farmer's assets are out of its reach with personal guarantees yielding very little.

[winner69]

Seniors must be laughing all the way to the bank with the cheap shares they took as partial settlement now worth nearly $10m more.

Never was a fan of a company issuing cheap shares to buy things ....the gurus generally only use 'over valued' shares to buy things, otherwise debt a better option?

In hindsight not such a good idea and maybe shareholders not as well off?

Now they talking about buying shares back when by the time they get around to it might be seen to be 'overvalued'. Go figure.

[percy]

Seniors must be laughing all the way to the bank with the cheap shares they took as partial settlement now worth nearly $10m more.

Never was a fan of a company issuing cheap shares to buy things ....the gurus generally only use 'over valued' shares to buy things, otherwise debt a better option?

In hindsight not such a good idea and maybe shareholders not as well off?

Now they talking about buying shares back when by the time they get around to it might be seen to be 'overvalued'. Go figure.

Very easy to be clever in hindsight,far harder to be clever with foresight.
The fact is Heartland had the foresight to buy the REL business using a combination of cash and shares.In hindsight they secured a very substantial business,which they knew with foresight, would have taken them years to develop from scratch.

[Beagle]

Bought more today. I think I'm now well positioned ...then again.... a few more wouldn't hurt.

[dingoNZ]

Will be buy in next day its down (eeek I hope is has a down day soon, sorry for those holding!).

[percy]

I have to congratulate you Percy on indoctrininating all the newbies to your visions of grandeur for HNZ.
Particularly all the ones that have selected it in their top 5 picks for next years comp. Hope it does well.
Afraid I don't like the fact that the sellers now well outnumber buyers for this stock 1.38 Million for sale vs buyers only wanting 105,000 , what happened there?
That overhang of sellers is still there and looks like they want out again................not too encouraging for the shareprice.

Above posted 23/12/2013.
HNZ closed at 86cents that day.
11 months on it would appear the indoctrinated newbies have done rather well taking out the overhang of sellers.Not only enjoying fully imputed dividends of 6 cents per share,but seeing the share price rise 24 cents to $1.10 today.
Depending how you account for the imputated dividend, I think 34% to 38% is rather a handsome return over 11 months.
Will it work out to be over 40% in another month's time???