HGH - Heartland Group Holdings

[percy]

We know F&P Finance is/are doing well,and I expect Marac is too.This mornings' sharetrader AM update confirms finance companies are doing well;
G E Capital;The "strong" growth stemmed from commercial finance volumes increasing 15% and consumer volumes 18%.

[Xerof]

F&P is exclusively consumer loans. GE is primarily consumer with a small portion of commercial. Neither have exposure to rural or housing.

To compare them to Heartland is mischievous or pure ignorance

[percy]

F&P is exclusively consumer loans. GE is primarily consumer with a small portion of commercial. Neither have exposure to rural or housing.

To compare them to Heartland is mischievous or pure ignorance

Pure ignorance.!!! Was thinking commercial and consumer were compareable to Marac.

[Snoopy]

GE is primarily consumer with a small portion of commercial. Neither have exposure to rural or housing.

But maybe not for long?

"The company (GE) also planned to be more aggressive in the agricultural lending sector and to take a more active part in businesses associated with rebuilding activity in Christchurch."

Heartland now in GE's sights?

SNOOPY

[Snoopy]

Start worrying about Aussie banks sauces of funds.They appear to have a problem.

Taking ANZ as an example Percy, I don't believe the picture is as bad as you paint it. Take a look at the latest 30th September 2011 Balance Sheet. There is an item on there called 'bonds and notes' that is unrelated to any shareholders equity that ANZ may have built up. It accounts for $56.551m which when added to the $37.954m of shareholders equity must make ANZs 'total loan capital' to 'loans outstanding' rather superior to Heartland's position.

The bonds and notes are further explained under Note 26. They are basically set by the bank on the banks terms and almost all are due to mature within five years. I think I am right in saying that these bonds/notes are tradeable on the open market but are not subject to any third party redemption risk. OTOH they are callable five years before maturity. In effect that means, as I see it, ANZ can redeem these bonds and notes at any time. From what I can figure out Heartland have no such equivalent instruments. The fact that Heartland rely entirely on equity capital to prop up their loan portfolio means it is in a far more precarious position than the likes of ANZ. If I have got that interpretation wrong someone please tell me!

SNOOPY

[winner69]

Jeez Percy your reading of the Oz market is spot on

Oz house prices fell in May. The paper says the biggest fall in 6 years.

And an impending implosion must be about to happen Like Melbourne prices fell about as much as they fell in Hobart. What a disaster for those people .... And no doubt they owe the banks heaps as well

Just as well HNZ are insulated from this.

PS did you read about that private school in Melourne with 1500 students going broke the other day owing $18 million in debt ...... To the banks. A sign of the times eh

[percy]

Jeez Percy your reading of the Oz market is spot on

Oz house prices fell in May. The paper says the biggest fall in 6 years.

And an impending implosion must be about to happen Like Melbourne prices fell about as much as they fell in Hobart. What a disaster for those people .... And no doubt they owe the banks heaps as well

Just as well HNZ are insulated from this.

PS did you read about that private school in Melourne with 1500 students going broke the other day owing $18 million in debt ...... To the banks. A sign of the times eh

First of all I missed the story of the Melbourne private school.Did the Burser bugger off with Matron? $18 million in debt.Cracker.!! I know Nelson College had to auction off the school's art work because of debt.Think the old boys brought it and gave it back to the school.
I have got myself in trouble on NPX thread saying I feel there will be a hole in their Aussie earnings,but other than minning Aussie have big troubles,which you have picked up on.Sauce,[source] of funds;I think Aussie Banks have borrowed off shore big time,so watch this space.
TSB are doing well,don't know if it will affect the price of fish or not,but I think they are maybe a bank?
Xerof will no doubt enlighten me.!!!
HNZ as you point out are well away from the troublesome Aussie market.
Fun starts when you have negatively geared your house,and your business suffers a down turn.Bit like playing Russian roulette with a bullet in every chamber.Banks panic,suppliers panic,good staff panic and look for a job elsewhere.Out come; everyone takes a haircut.!!!!

[winner69]

About the school
http://www.theage.com.au/national/ed...529-1zhfv.html

[percy]

About the school
http://www.theage.com.au/national/ed...529-1zhfv.html

.
You may wish to google;calls for rba rate cut grow as outlook darkens.
Funny how a school is really just another type of business,poor CEO,poor board,leds to poor decisions which leds to "big haircuts' all round.
May pay to send "our leader" over there.Sack the teachers,bring in Philipine teachers for half the cost,and increase class sizes to 55 pupils.

[Breastwork]

http://www.nbr.co.nz/article/monty-p...-better-119777