HGH - Heartland Group Holdings

[Baa_Baa]

Was only trying to be helpful.!

I know you were, no offence intended Percy. Banks, which HNZ is because it's registered as a bank, have three pillars of business .. Lending, Deposits and Payments .. in that order. Acquiring MTF is of course about growing the lending base, it's about buying the book (or a stake in the book), but it's acquiring a stake in tier 2 lending (finance) at best with mid-tier risk profile, at best, but often worse. Major banks don't avoid this stuff, but they don't normally buy the source of the borrowers, they just load the loans according to the risk profiles and maintain direct relationships.

HNZ advocates imho need to look deeper into the EPS accretive aspects of HNZ taking a position in MTF, which is not solid in it's own right, and balance that against bank-grade risk profiling. This will help to identify whether HNZ is moving progressively and profitably towards being a bank, or whether it is progressing a finance company, and what the risk to shareholders is. Jmho.

[trader_jackson]

Baabaa - when Heartland applied to become a BANK the well respected CFO at the time said it was 'really only a marketing ploy'

It was to give them greater degree of respectability in the eyes of depositors etc ..... and of course lower funding costs

At the end of the day they essentially remain a 'finance company' ....but as a BANK subject to a greater degree of scrutiny from the banking authorities

So essentially Baa_Baa, and maybe I have this wrong, but this is how I view it with my 'simplistic' glasses on, it gets the funding a bank would get, but has the growth of a finance company?

With the NZ economy fairly stabled (and expected to remain so), and unlike the bigger banks, HNZ could be argued to have much much higher rates of growth, whilst enjoying the cheap money traditionally only "banks" have been able to get hold of... how is this now a great thing? Really should have a much higher PE (and therefore share price) than where it currently is to reflect this impressive growth opportunity...

And yes winner69 I can't confirm if I'll get the homework done with so much detail, but I'll try

[Baa_Baa]

Baabaa - when Heartland applied to become a BANK the well respected CFO at the time said it was 'really only a marketing ploy'

It was to give them greater degree of respectability in the eyes of depositors etc ..... and of course lower funding costs

At the end of the day they essentially remain a 'finance company' ....but as a BANK subject to a greater degree of scrutiny from the banking authorities

Yes, I know. Which is why I think shareholders need to ask themselves the hard questions.

[tim23]

I think MTF would be a bit small for the major banks however could HNZ itself become a target?

[trader_jackson]

I think MTF would be a bit small for the major banks however could HNZ itself become a target?

I have heard people speculating this... but probably a while off
... but it would be nice to have at least one 'big' bank that isn't government owned to be a nz run and owned company

[Baa_Baa]

So essentially Baa_Baa, and maybe I have this wrong, but this is how I view it with my 'simplistic' glasses on, it gets the funding a bank would get, but has the growth of a finance company?

With the NZ economy fairly stabled (and expected to remain so), and unlike the bigger banks, HNZ could be argued to have much much higher rates of growth, whilst enjoying the cheap money traditionally only "banks" have been able to get hold of... how is this now a great thing? Really should have a much higher PE than where it currently is to reflect this impressive growth opportunity...

And yes winner69 I can't confirm if I'll get the homework done with so much detail, but I'll try

Eternal optimism is no compensation for quality thought and due diligence, although your enthusiasm is infectious . Just listen to what some have to say and learn from their responses, there are plenty here who have the experience to debate this and others will be well informed by it.

[Baa_Baa]

Shareholders when considering some of the T20 actions might also ponder why the SP dropped a cent today. You need to get on top of reality with HNZ, there's been too much focus (imo) on the SP going to the moon in unrealistic timeframes. The TA says breakout but the FA has a new thing to consider, a stake in MTF. Here they are announcing a potentially EPS accretive acquisition and the big money says .. yeah nah.

[Snow Leopard]

Kuala Lumpur = Muddy Estuary

Thanks for bringing this [back] to our attention percy.

It is all clear as mud to me what the true position of MTF actually is.

What game are TNR's playing? The MTF shareholders or board can prevent them going over 10%. (Have I got that right at least?)

Best Wishes
Paper Tiger

So now HNZ has expressed an "interest" in spending nearly $7m for 20% "subject to completing initial due diligence satisfactory to it".

But wait there is more...

"interested in an acquisition of all of the shares of MTF, subject to completing more fulsome due diligence and reaching agreement with the MTF Board on an acquisition process".

So don't sell to Turners for $1.15 because we may buy them for $1.50 or not.

And who says finance is not fun?

Best Wishes
Paper Tiger

[pierre]

Shareholders when considering some of the T20 actions might also ponder why the SP dropped a cent today. You need to get on top of reality with HNZ, there's been too much focus (imo) on the SP going to the moon in unrealistic timeframes. The TA says breakout but the FA has a new thing to consider, a stake in MTF. Here they are announcing a potentially EPS accretive acquisition and the big money says .. yeah nah.

Actually, the big money has said nothing today - the announcement wasn't published until 5:28pm. Tomorrow will be interesting.

Bonne chance a tous.

Pierre

[Snow Leopard]

Actually, the big money has said nothing today - the announcement wasn't published until 5:28pm. Tomorrow will be interesting.

Bonne chance a tous.

Pierre

Could be a leak from earlier today - did you think of that?
Could have leaked days ago - did Baa Baa think of that?

Tomorrow trader_jackson will present his homework and Baa Baa will, hopefully, have recovered from whatever it is ails him.

Best Wishes
Paper Tiger