HGH - Heartland Group Holdings

[percy]

The Australian Banks had to raise capital to stand still.
This extra capital will not grow eps or dividend.
On the other hand, Heartland have TOO MUCH capital,and the share buy back will raise eps and most probably the dividend.

[trader_jackson]

CBA just released their results... profit up, ahead of forecasts... one reasonable person would think banking stocks would get a lift or at least stabilize... instead heartland takes one of its biggest dives yet

[vin]

Looks like good buyin opportunity at these levels, sold my holding last year

[NZSilver]

Price of dairy cattle has a floor of cull (meat) price. Somewhere around that $1000 mark maybe a little less depending on breed - Jersey vs cross vs friesian. Milk price unlikely to have much change next season and payout this year likely to have a 3 in front of it based on current GDT prices. Many farms are running at a loss and high debt farmers and sharemilkers (lower order mainly 21-25% no cows) feeling the pinch - I have heard banks have told people to renegotiate contracts or walk as will owe even more at the end of the season. Service industries to dairy of which there are many are feeling pinch to - breeding/animal health/ products/earthworks/feed etc - flow on will have effect on NZ economy especially rural towns. I presume Heartland is exposed to these both dairy (more risky businesses - ie sharemilkers) and service industries. Looks like we will see sub 1.10 in the near future - sub $1 on the cards? I wouldn't count it out. HBL in Downtrend now.

[Baa_Baa]

Technically the clear 'rounded top' chart pattern is a bearish reversal (go figure at 18% off the recent highs and 21% off the $1.41 high) but the question is where is support for this falling knife? Seems to be modest chart support at $1.09 then stronger support at $1.06 being the August low. Picking a buy-in point is high risk any way you look at it, imho, until the trend reverses.

[NZSilver]

I agree Baa, I'm out for the time being - too risky until further information is at hand.

[Beagle]

The Tier 2 capital raise is planned for April (subject to satisfactory market conditions), or words to that effect. I hope we still have satisfactory market conditions in April and they get the issue done successfully. As for paying it out in terms of share buy-back I am not so sure that's a good idea in the current environment. Is it more prudent / conservative to have excess capital in uncertain times ?, I think it is wise. I watch and am interested if it gets down to my target price. Consumer loan provisioning in the interim result will be something that will be very interesting in light of their exposure to Harmoney loans. Dairy provisioning and comments will also be watched by many with great interest.

[percy]

Heartland Bank have a very experienced board and management.
They have a record of prudent stewardship,so I am sure they will weigh up "market conditions", before any decisions are made re share buyback or acquisitions.
They all have a great deal of "skin in the game" being significant Heartland Bank shareholders.

ps.
The little fellow at the bottom of the cliff waving,next to the large pile of Leemings, is me.!!What I am waving in my hand is my cheque book."Well positioned".!!!!!!!!!!!!!!!!!!...lol.

[mouse]

Price of dairy cattle has a floor of cull (meat) price. Somewhere around that $1000 mark maybe a little less depending on breed - Jersey vs cross vs friesian. Milk price unlikely to have much change next season and payout this year likely to have a 3 in front of it based on current GDT prices. Many farms are running at a loss and high debt farmers and sharemilkers (lower order mainly 21-25% no cows) feeling the pinch - I have heard banks have told people to renegotiate contracts or walk as will owe even more at the end of the season. Service industries to dairy of which there are many are feeling pinch to - breeding/animal health/ products/earthworks/feed etc - flow on will have effect on NZ economy especially rural towns. I presume Heartland is exposed to these both dairy (more risky businesses - ie sharemilkers) and service industries. Looks like we will see sub 1.10 in the near future - sub $1 on the cards? I wouldn't count it out. HBL in Downtrend now.

Many thanks for cull (meat) price. We need to avoid PANIC.
Heartland may take a hit, hopefully not a serious one.

[winner69]

Above post #3921 posted 12-11-2014.
I therefore look forward, with confidence ,to Heartland Bank's interim result on the 23rd of this month.

Yes Percy all on track

H1 earnings just under $26m (including the one off costs) and a boomer h2 bringing FY to $54m plus a bit.

It's next year fy17 that could be a problem, although to early for guidance to be given.