HGH - Heartland Group Holdings

[vorno]

I am happy with the result -and I would probably add to my holding in HNZ rather than make a Harmoney investment. However it looks like "the market" is somewhat underwhelmed.

It's already made its increases, except that was about a week ago!
The SP today probably means it'll remain at the stable value of ~1.37-1.40.

My guess is it'll top 1.40 in the next few months? I don't think we'll see much movement before then.

[Harvey Specter]

However it looks like "the market" is somewhat underwhelmed.

It's already made its increases, except that was about a week ago!

I also think the lack of progress from HER held back the upside some were expecting from the announcement.

[Beagle]

I also think the lack of progress from HER held back the upside some were expecting from the announcement.

Yes and provisioning for bad and doubtful debts of $5.1 million was higher than I expected. Still its a great core portfolio stock and a great hold for dividend income / EPS growth and possible further upside surprises from EPS accretive acquisitions. Its also great that they held costs despite growth in the loan book, (all too often, in fact its the norm, we see companies growing expenses ahead of growing the top line).
Great hold and stock trades cum a 3 cent fully imputed dividend in 5 minutes time so to speak, (record date is 19 March, payment date 2 April), so sellers at $1.37 are really only getting $1.34 before brokerage costs.

[iceman]

Yes the impairments were quite high. But they do say that impairments in the previous year were low and current is closer to expectations. So maybe we need to factor this in as normal. $ 1.1M of it was from HER in what they call "collective provisioning". Maybe you the accountant Roger can tell me what that means ?

But on the other side of the ledger we also have over $6M of HER tax losses to be utilised in the next 12 months.

Very pleasing to see the tight control on expenses with the operating expense ratio dropping from 55% to 48%.

Yes and provisioning for bad and doubtful debts of $5.1 million was higher than I expected. Still its a great core portfolio stock and a great hold for dividend income / EPS growth and possible further upside surprises from EPS accretive acquisitions. Its also great that they held costs despite growth in the loan book, (all too often, in fact its the norm, we see companies growing expenses ahead of growing the top line).
Great hold and stock trades cum a 3 cent fully imputed dividend in 5 minutes time so to speak, (record date is 19 March, payment date 2 April), so sellers at $1.37 are really only getting $1.34 before brokerage costs.

[Beagle]

Happy to oblige mate. There's two types of provisioning with bad and doubtful receivables. Specific provisioning over loans that are expected to be bad, (like that silly woman's fashion business that went under but I think they are still trying to pursue recovery through legal channels) and a general level of provisioning against receivables as a whole, "collective provisioning" which is usually based on historical data / future predicted modelling of delinquencies.

[Snow Leopard]

Hi

I am happy enough with the result and see nothing (so far) to worry about in the figures.

Keep up the good work.

That is all.

Best Wishes
Paper Tiger

[KiwiGekko]

Strange old day today for HNZ - oh well, I topped up on close ($1.35 [$1.32 if you count the divvy]) - and I will be using the DRP offer.

[Beagle]

Mr market must have been looking for something special from the announcement. I guess just achieving what they said they would, (bang on right in the middle of the updated $23-$24m guidance) recently given contained nothing special in terms of new news so the recent strong run-up unwound a bit.

Strong indications of forward demand growth give great comfort to long term holders

[Baa_Baa]

Mr market must have been looking for something special from the announcement. I guess just achieving what they said they would, (bang on right in the middle of the updated $23-$24m guidance) recently given contained nothing special in terms of new news so the recent strong run-up unwound a bit.

Strong indications of forward demand growth give great comfort to long term holders

Just goes to show how well the market values a company that does what it says and has solid plans for what it wants to improve on. Happy holding for sure.

What was the conclusion of your analysis of the DRP? Seems ok to me but the caveat of a discount no less than 95% which if exercised seems to potentially negate the avoidance of brokers fees?

[Beagle]

Just goes to show how well the market values a company that does what it says and has solid plans for what it wants to improve on. Happy holding for sure.

What was the conclusion of your analysis of the DRP? Seems ok to me but the caveat of a discount no less than 95% which if exercised seems to potentially negate the avoidance of brokers fees?

Its a great way to build wealth for those that don't need dividend income over time. Its not so much the discount which IIRC is now down to 1%, (Percy help me out mate is 1% right ?) its just using the "magic" of compounding reinvestment over time in tandem with a steadily increasing share price. Relatively painless way to build wealth if you don't need the dividend income That said, the dividend hound part of me likes cash dividends so I guess you could say I'm conflicted lol