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17-03-2016, 04:22 PM
#7231
Chris Lee comes out and says he's not keen on the proposed financial engineering Heartland is contemplating. Suppose he must be genuine in his thoughts as he's talking himself out of shed loads of commission.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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17-03-2016, 04:49 PM
#7232
 Originally Posted by Roger
Chris Lee comes out and says he's not keen on the proposed financial engineering Heartland is contemplating. Suppose he must be genuine in his thoughts as he's talking himself out of shed loads of commission.
Chris Lee might not be always right (though I found that I seem to win more often than not when following his recommendations), but I found that he is always genuine!
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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17-03-2016, 05:35 PM
#7233
Chris Lee has a record of being spot on with his Heartland comments,however I think he should have taken note of what Heartland said when reporting their interim result on 23-2-2016.
"In current market conditions,Heartland believes there is greater opportunity for acquisitions."
They then went on to say;"It wishes to assess opportunities [if any] that may arise during this period of volatility and will continue to monitor its capital position [including its Tier 2 regulatory capital position] during this period.The board continues to be of the view that,in the absence of other uses of capital,it's excess capital should be returned to shareholders."
As a side bar.A few years ago Ebos refunded capital,rather than have a "lazy" balance sheet.Director Peter Kraus told,then MD Mark Waller ;"if you come up with a sound acquisition, then shareholders will be happy to fund it."Which they did a couple or three years later.
I am sure should Heartland come up with a sound acquisition,then shareholders will back them too.
Last edited by percy; 17-03-2016 at 05:37 PM.
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17-03-2016, 06:03 PM
#7234
I agree with Mr Lee that Heartland should keep their 'excessive' capital.
Even a 14% /15% equity ratio or whatever it is is 'excessive' leverage
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-03-2016, 06:07 PM
#7235
Mr Lee doesn't have much time for banks these days does he. (This weeks are)
He doesn't answer the question he asked "I wonder which of the New Zealand banks will be found to be putting profits ahead of their clients, and breaching standards such as the Code of Ethics, which is supposed to govern all involved in financial advice ..."
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-03-2016, 06:13 PM
#7236
Originally Posted by Roger
Chris Lee comes out and says he's not keen on the proposed financial engineering Heartland is contemplating. Suppose he must be genuine in his thoughts as he's talking himself out of shed loads of commission.
The capital return / bond issue will take place
Heartland need to be seen to be something ....anything .....even if it is just to keep the likes of you happy (based on your previous comments )
Just do, do. https://m.youtube.com/watch?v=R2RzO-DY72Q
Last edited by winner69; 17-03-2016 at 06:16 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-03-2016, 06:23 PM
#7237
Originally Posted by winner69
I agree with Mr Lee that Heartland should keep their 'excessive' capital.
Even a 14% /15% equity ratio or whatever it is is 'excessive' leverage
Does not worry me either way.Acquisition [ if sound] or capital return.As I stated before,if an acquisition stacks up,shareholders will front up with the funds..
Just pleased they are not getting complacent.
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17-03-2016, 07:15 PM
#7238
The REINZ Dairy Farm Price Index has dropped 21% in 12 months
http://www.interest.co.nz/rural-news...d-21-12-months
Just as well Heartland don't lend to buy farms .....but Mr Lee mentioned they probably have a few 2nd mortgages which might add a bit of stress for some.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-03-2016, 08:31 PM
#7239
Originally Posted by winner69
The REINZ Dairy Farm Price Index has dropped 21% in 12 months
http://www.interest.co.nz/rural-news...d-21-12-months
Just as well Heartland don't lend to buy farms .....but Mr Lee mentioned they probably have a few 2nd mortgages which might add a bit of stress for some.
14% in one month and banks have only very, very recently started to toughen up on who they are prepared to continue to support. With a massive number of listings and what few buyers there are holding back for lower prices I can't see any other result but further substantial falls from here. What's HBL's current LVR ratio based on the real current realisable value of farms, stock plant, and machinery ?
http://www.interest.co.nz/business/8...s-dairy-sector Rabobank bracing for the forthcoming storm...maybe other banks should too ?
Outlook doesn't look good either
http://a.msn.com/r/2/BBqAZN0?a=0&m=en-nz
And Bernard Hickey weigh's In - http://www.nzherald.co.nz/rural-busi...ectid=11604664
Last edited by Beagle; 18-03-2016 at 09:47 PM.
Reason: Add further informative links
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-03-2016, 08:45 AM
#7240
Interim Report out
I see the Tumu Whakarea managed to get his photo in the report twice.
No photos of dairy farms though
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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