HGH - Heartland Group Holdings

[percy]

Percy - maybe you are right, things are worse in OZ than I realised if these remarks from a laid off Hastie staff ‘‘I’m a little bit older, my mortgage is nearly paid off so I’m probably not in as bad a position as some of the others. But I know a lot of them, they could lose their house in 28 days the way banks are at the moment,’’ Mr Guest said

Then again the NBR over here had a big headline today Bankers eye dairy farm debt as payout slides .... maybe we need to be worried as well

Yes/no/yes/maybe,The article two pages earlier on page 8 "The growth was across most sectors." "The deleveraging has largley gone sideways,as an average figure,but you can still call that deleveraging if you look at credit growth relative to GDP'. Refering to NZ.
Again you and I know it is the heavily leveraged person/farmer/retailer/manufacturer who gets caught out when markets turn.
We all know this has happened in NZ but forget that it is also happening in Aussie.The equity ratios of financial institutions therefore has to be looked at more carefully.Also, as you rightly pointed out in an earlier post a very high ROE gives warning that that institution may be taking too bigger risks.
Another area we have not gone into [yet] is bank/finnace company sources of funds.Again off the top of my head I think HNZ has fewer worries than the Aussie banks.
Hastie Group.Luckily I do not have any shares in it.Did not realise how big it was.Serious problems, and a lot of jobs lost.

[winner69]

33 cents .... you could have offered more than that percy ..... cheeky fella ... and hiding under an Australian comapny name (maybe your sisters relative?) isn't fair either .. naughty of you

[percy]

33 cents .... you could have offered more than that percy ..... cheeky fella ... and hiding under an Australian comapny name (maybe your sisters relative?) isn't fair either .. naughty of you

Not me.!!!! John Armour;wonder if Torchlight are backing him.?

[pierre]

The shonky offers from these low-lifes really piss me off. At least they now have to include the FMA warning but probably still trap a few of the unwary and /or unworldly.

It's not much satisfaction but I do I take a minor amount of childish pleasure in writing a suitable response across their documents and returning them in their (unstamped) envelope. Wish there was more that could be done to take these types out of the market.

[Master98]

PGW low-ball offer was 35c apiece couple months ago, now market price has been pushed down to as low as 31c apiece, does it happen to HNZ? let's see.

[Snoopy]

Now HNZ.
It has achieved a lot in a short time,getting approvals and merging three companies.It has successfully got through the Govt guarantee,and now looks to be getting on with the business on making money.

Whether the SP rockets on bank licence or not I do not know.In fact I see HNZ doing very well with out one,so a bank licence does not concern me,however I would rather have one!!!

Just a street observation on Heartland. Have walked past a couple of branches down here. The two I saw were branded CBS Canterbury, with small print if you peered inside the window 'part of the Heartland group'.

I would say there is quite a big rebranding exercise to do when this Heartland thing finally comes together. How many offices nationwide will need rebranding/refurbishing? And what kind of hole will that make in the balance sheet? There must be a very large latent capital expense haunting on the HNZ books. My guess is that any rebranding will be put on ice until Heartland gain their banking licence. Otherwise HNZ might have to rebrand twice, first as the finance company that it is, and later as a bank. That banking licence could be years away. That is probably a good thing with the equity ratio at HNZ looking tight (IMO).

SNOOPY

[percy]

Just a street observation on Heartland. Have walked past a couple of branches down here. The two I saw were branded CBS Canterbury, with small print if you peered inside the window 'part of the Heartland group'.

I would say there is quite a big rebranding exercise to do when this Heartland thing finally comes together. How many offices nationwide will need rebranding/refurbishing? And what kind of hole will that make in the balance sheet? There must be a very large latent capital expense haunting on the HNZ books. My guess is that any rebranding will be put on ice until Heartland gain their banking licence. Otherwise HNZ might have to rebrand twice, first as the finance company that it is, and later as a bank. That banking licence could be years away. That is probably a good thing with the equity ratio at HNZ looking tight (IMO).

SNOOPY

Don't see it that way at all.Heartland are not going to be the new Westpac with tellers,red green VWs etc.More an updated Marac/F&PFinance, still supplying finance to car yards,industry,manufacturing ,farming as they have done successfully for years.Don't expect to see 100 Heartland Branches on the high streets of NZ.Banking licence does not/will not see a roll out of branches.Banking licence will mean they pay less for their funds.
Equity ratio.Been there,learnt ,it is the envy of all .
Start worrying about Aussie banks sauces of funds.They appear to have a problem.

[janner]

" Aussie banks sauces " ???.. I know that there is a war on for the mortgage market Percy..

Are they asking .. " Would you like fries with that " .. ??

[K1W1G0LD]

All this debate between you and Snoopy is fascinating Percy . But for what its worth I'm firmly in your corner. HNZ have done a lot of the hard yards but they have to maintain and increase their profits!

[percy]

All this debate between you and Snoopy is fascinating Percy . But for what its worth I'm firmly in your corner. HNZ have done a lot of the hard yards but they have to maintain and increase their profits!

Yes,I look on it as doing my community service helping Snoopy out.
Last announcement showed they were now in business of generating profits.The next announcement should show further progress.FPA finance is doing well,so I hope Marac is too.However the market is challenging".
As you point out they have done the hard yards.Whether it is football,running a school,or whatever, it is always the organization with the firm foundations that prospers.