HGH - Heartland Group Holdings

[vorno]

I know people default on loans to the banks but i just feel more uneasy with harmoney and with my age group haveing more discressionary money..ie.. kicked the missus out...and the younger generation with mortgages etc its even stephens to whether Harmoney makes money

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

[axe]

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

Most of the top "A" loan seem to be filling up fast. Remember Harmoney clips the ticket regardless of how the loan does. With TME as a strategic partner , Harmoney should have a reasonable chance of profitability over the long run.

Good news for HNZ too.

[mouse]

They will make money because their loans are moving at a steady rate - register as an investor and you can watch as the loans "fill-up". If they can continue the momentum that it has had then I see it as a successful business - particularly for those who do not wish to invest in the sharemarket.

As for the people actually getting the loans, well most of the applicants are geared towards a debt consolidation loan or buying a car.

I am a little concerned about 'debt consolidation'. Since the borrower obviously cannot pay, so they take their debt elsewhere. In the old days of course it was jolly good to have debt. You faced all sorts of problems getting into debt. I tried to persuade the old Canterbury Savings Bank to give me more cash and they told me I had to repay money. This was bad news, and I told them I was borrowing money due to not having any to speak of. Today, faced with that situation you can go elsewhere and get a 100 inch Colour TV for bringing your debt over. And can we lend you another $50,000 Sir? Funny times, Funny Money. Is it a bubble, or the printing press?

[Bobdn]

I am a little concerned about 'debt consolidation'. Since the borrower obviously cannot pay, so they take their debt elsewhere. In the old days of course it was jolly good to have debt. You faced all sorts of problems getting into debt. I tried to persuade the old Canterbury Savings Bank to give me more cash and they told me I had to repay money. This was bad news, and I told them I was borrowing money due to not having any to speak of. Today, faced with that situation you can go elsewhere and get a 100 inch Colour TV for bringing your debt over. And can we lend you another $50,000 Sir? Funny times, Funny Money. Is it a bubble, or the printing press?

Debt consolidation is very common among 20 and 30 somethings and a reasonable reason for people to go to Harmoney or standard bank. They might have credit card debt being charged at 24 per cent interest, consolidated debt could get that down to 15 per cent at a garden variety bank.

Debt consolidation doesn't really teach decent financial habits, unfortunately. In the longer term it would probably be better just to pay off the loan at the higher interest rate and avoid high interest loans in the future, so yes looks like the Canterbury Savings Bank did you a favour in the long run, Mouse.

Banks are doing really well it seems at the moment. I invested in both ANZ and HNZ at more or less the same time late last year. HNZ is just 3 per cent of my holdings where as ANZ is 8 per cent (as is Spk and CNU). My HNZ has gone up 23 per cent and my ANZ 12 per cent. I'm delighted with both outcomes - I just wish I had replaced WHS with HNZ in the stock picks

[Jantar]

- I just wish I had replaced WHS with HNZ in the stock picks

8 of the top 10 have HNZ in their picks

[winner69]

Chris Lee this week touting a 8 cent dividend from Heartland this year

Punters (esp those who compare to term deposit rates) should be happy with a 5% tax paid dividend these days from a ow risk investment,

Jeez that supports a $1.60 share price today and for the perceptive punters looking forward to growing dividends even 2 bucks

[vorno]

Anybody topping up or selling off?

PS:.... if you're selling I'll happily take them off your hands for $1.20

[Jantar]

Topped up a small amount yesterday.

[tim23]

Holding at this stage - many others have a harmoney experience to share thinking of investing

[Beagle]

Happy holder. If we get 8 cps fully imputed divvies this year, ( 11.11 cps gross) that's a gross dividend yield of 7.9% at $1.41 and if we're seeing those divvies growing at circa 10% per annum for the foreseeable future I think that's still a very compelling opportunity. It may be approaching a similar PE ratio to the small Aussie banks Bendigo and Bank of Queensland but the important difference for Kiwi's is we can claim back the imputation credits on our HNZ dividends whereas franking credits paid by those Aussie banks are useless to us. Clearly it pays real money to take a parochial approach to investing.
Edit - W69 - I think Chris Lee makes an excellent further point about how banks do really well in a low interest rate environment. Delinquencies are much lower as debt servicing is easier for borrowers whilst margins are maintained. I think some margin expansion is possible in lower interest rate environments. We also have low fuel prices which also contributes significantly towards reducing bad debts with vehicle finance as borrowers find it easier to meet their commitments...so a very positive environment for profit growth then