HGH - Heartland Group Holdings

[winner69]

Reverse mortgages.
Another very good article in this morning's The Press;page A13; Agony Aunt;Sell or borrow?
The same article is at www.stuff.co.nz and is headed;Agony Aunt;Reverse mortgages are a solution for the asset rich but money poor.
Again I concur.!

I am told that Heartland are converting more of the enquiries about her (from the TV campaign) into loans than they anticipated.

[percy]

Percy, so you are asking Heartland to take more risks and/or increase leverage?

Being a lot smaller and being more mobile than the big Aussie banks ,I think Heartland can develop their niche sectors, and grow their ROE to be higher than the Aussie banks.
Heartland is being run by very experienced bankers,who will look at sectors that provide better ROE, without necessarily taking higher risks.
For example Heartland's REL mortgages enjoy about [from memory] 2% higher interest rates than standard mortgages.

[Hoop]

The downtrend is 4 months old

[winner69]

Being a lot smaller and being more mobile than the big Aussie banks ,I think Heartland can develop their niche sectors, and grow their ROE to be higher than the Aussie banks.
Heartland is being run by very experienced bankers,who will look at sectors that provide better ROE, without necessarily taking higher risks.
For example Heartland's REL mortgages enjoy about [from memory] 2% higher interest rates than standard mortgages.

Analysts in their reports imply that NIM on HER stuff has a negative impact on overall NIM because they have lower margins than a lot of their business.

[winner69]

The downtrend is 4 months old

......and the gap is still to be filled

Yes, 4 months downtrend - must be a story there somewhere.

[couta1]

......and the gap is still to be filled

Yes, 4 months downtrend - must be a story there somewhere.

A story that's means nothing if your a long term holder just wiggly, whoops I mean squiggly lines on a chart. Disc-Holding lots long term.

[percy]

Analysts in their reports imply that NIM on HER stuff has a negative impact on overall NIM because they have lower margins than a lot of their business.

This is correct.
Reverse mortgage lending is a lot lower interest rates than say motor vehicle finance.
Heartland have a very diversified lending book,therefore the analysts should be comparing REL with ordinary mortgages.
And then they could say HNZ are achieving a lot more on their mortgages than Westpac.Correct but wrong.Different types of mortgages.
It is interesting to note TNR are running down their REL book to recycle the funds into motor vehicle lending,as it is more profitable.
There fore TNR's ROE will exceed HNZ's.

[percy]

The downtrend is 4 months old

Great to have you back.
Only wish it was with you posting the charts have HNZ as a must buy.!!!!!!!!!!!!!!!!!!!!!!! lol.

[sb9]

I almost sense the downtrend is doing reversal now, thanks to Warren Buffet and co....

[noodles]

Great to have you back.
Only wish it was with you posting the charts have HNZ as a must buy.!!!!!!!!!!!!!!!!!!!!!!! lol.

On the contrary Percy. The stock is in a short term downtrend, but a long term uptrend. Some would say this is the perfect time to buy as it is approaching 200MA and support levels. A low risk entry.