HGH - Heartland Group Holdings

[percy]

I sold some HNZ over the past two weeks to redeploy capital into the ASX (with the NZD being so strong!). Still very happy with HNZ and will be investing further as capital permits

I must admit I am in agreement with HSBC economist Paul Bloxham,who said;
"The NZ economy is out performing every other OECD economy.It was the fastest growing of 34 OECD economies in the last year.And we think that situation's going to continue this year as well.
The Australian economy,in contrast,is at the end of a mining boom.Mining investment is falling,and the rest of the economy is 'so-so'."
With fully imputed dividends, and a strengthen NZ dollar, I am happy to be over weighted with both Heartland and other NZ shares,

[Beagle]

I must admit I am in agreement with HSBC economist Paul Bloxham,who said;
"The NZ economy is out performing every other OECD economy.It was the fastest growing of 34 OECD economies in the last year.And we think that situation's going to continue this year as well.
The Australian economy,in contrast,is at the end of a mining boom.Mining investment is falling,and the rest of the economy is 'so-so'."
With fully imputed dividends, and a strengthen NZ dollar, I am happy to be over weighted with both Heartland and other NZ shares,

Agree 100%. If we don't go above par against the $A this year I'll be really, really surprised. Potentially could go well above par in the next couple of years. If we can't beat them in the cricket we'll beat them economically

[winner69]

The share price is stagnant as ...not good

Jeff needs to make some sort of announcement .....about anything but mention the words few million something's. or tell Forbar something so they can do another paper.

They need to keep the momentum going or else the share price will slowly die.

C'mon Jeff do something, that's what you paid for

[vorno]

The share price is stagnant as ...not good

...but its up 2cents today?

[vin]

Hopefully it gathers some momentum! Bought in again at 1.29. Very overweight

[Beagle]

Fundamentally Its a very cheap growth stock paying a prospective fully imputed gross yield of 9% for 2016, i.e. you're being paid very handsomely while you get your growth...such a stock is a very rare beast on the NZX.

[winner69]

...but its up 2cents today?

Prob close at 130 ....where it was a few weeks ago.

Since it reached 141 its been ad ever since ......we need to something to give the price a boost

Still on track to report $52m NPAT for the year. Somebody needs to prompt the likes of Forbar.

[K1W1G0LD]

Prob close at 130 ....where it was a few weeks ago.

Since it reached 141 its been ad ever since ......we need to something to give the price a boost

Still on track to report $52m NPAT for the year. Somebody needs to prompt the likes of Forbar.

Stop moaning W69, just buy some more!!

[Beagle]

We've certainly has a stellar run in January and that after a strong run-up from $1.00 at the time of the ASM on 31 October to circa $1.16 around Christmas.
A 32% SP gain in the last 3 months is a great result in anyone's books. Now all the good news is out there, unless there's some surprise I'm not aware of it won't surprise me if we see a quieter period in the next three months and this won't concern long term holders many of whom I suspect will be quite happy to collect a nice divvy and know the company is doing the business for the long haul.Its interesting to reflect back to the day of the ASM just 3 short months ago. Those there that I spoke too thought $1.10 - $1.20, (depending on how much they'd had to drink) was a fair SP target for the stock by the time of the 2015 ASM in late 2015 and I was in that range too at that time, to be honest.

HNZ is presently trading on 13.2 times forecast 2015 earnings of 10cps and this price seems fair and reasonable to me for now. I remain of the view that's is a great long term hold on the basis that the team can deliver EPS growth over time and as they continue to deliver on their promises and continue to build their already strong credibility some modest further PE expansion is possible.

Since the ASM I've developed my understanding of the company to the point where I can see it being around $2 in due course but in my view this will take quite some time, probably, realistically, 2-3 years. I guess I feel its perhaps appropriate that somebody sounds a little note of caution to any newbie considering getting on board on the basis of very strong recent SP gains. Rome wasn't built in a day and good things take time. I think anyone expecting another 32% SP gain in the next 3 months ($1.32 growing to $1.74), is highly likely to be disappointed.
On the other hand long term investors will I remain sure, be very happy with long term SP gains and will be happy to know they're being paid well to wait for long term growth with handsome fully imputed dividends, I estimate this year at 7 cps which equates to a gross divvy yield of 7.37% for 2015 based on a SP of $1.32 and I am sure those dividends will grow over the years ahead. Everyone has their own way of investing but for what its worth I won't let any stock get to a position of being worth more than 20% of my portfolio no matter how sure I am of their long term prospects.

It concerns me a little that the company appears to be considering accounting for its profit on the Harmoney investment ? While it was more than fair of them to note that their upgraded guidance excluded any increase in the value of their Harmony stake as a result of the Trade Me investment I struggle to see where they are coming from in terms of implying that it might be acceptable to account for theoretical gains in this non-listed associate company on the basis that this is in some way connected with operational profit ? I would have thought the team would have taken professional advice from their auditors rather than leaving this as an open question is a profit upgrade announcement. You been pushing them too hard Winner 69 ?

Some silly bugger called it fairly valued at $1.32 on 1 February and suggested gains would be much harder to come by in the next 3 months....but I'm calling it as undervalued now having ostensibly done nothing and tracked sideways for 3 months. Sitting right on the maximum 20% allocation in my portfolio...we are well positioned

[Bobdn]

Yes used my gne dividend (receive it tomorrow) to buy more at 1.29.