HGH - Heartland Group Holdings

[Beagle]

Does anyone have a fix for a stubbornly stalled shareprice?

Ask yourself if its a coincidence or not that other companies with a meaningful exposure to the protracted dairy downturn are also languishing at fairly subdued level's e.g. PGW and SKL.

When will this nightmare for the dairy sector end...who can say ?

[SCOTTY]

[QUOTE=SCOTTY;609957]You are forgiven W69

This is why I like the drip and want the share price to stay low ��:
5/4/16. $1.198 (3.5 CPS)
29/9/15. $1.11 (4.5CPS)
27/3/15. $1.32 (3.0 CPS)
29/9/14. $1.015 (3.5 CPS)
20/3/14. $0.8606 (2.5 CPS)
1/10/13. $0.826 (2.5 CPS)

The magic of compounding

[BlackPeter]

Does anyone have a fix for a stubbornly stalled shareprice?

Just compare HBL with what the big 4 banks do at the moment (here ANZ ... hint: the blue graph represents HBL) ... and be pleased about a stubbornly stalled share price - I am.
Attachment 7954

[percy]

Just compare HBL with what the big 4 banks do at the moment (here ANZ ... hint: the blue graph represents HBL) ... and be pleased about a stubbornly stalled share price - I am.
Attachment 7954

Thank you for posting the chart.
Yes the correlation between HBL and the Aussie banks is holding HBL sp steady.
The issues facing the Aussie banks are well known,minning,property,and other sectors such as dairying means their bad debts are increasing.Poor expansion into UK and Asia.Wholesale European funding,and having to raise more capital are rightly worrying investors.
ROE is under pressure,as will be their capacity to pay increasing dividends.
HBL has only a small exposure to dairying,otherwise it faces none of the above issues,proven by the fact they have excess capital.
The market is not seeing this,so we are seeing a security being mispriced.Increasing eps,roe,and dividends, will reward those who take advantage of this mispriced sp .Don't know when it will happen,but it will.

[K1W1G0LD]

Just compare HBL with what the big 4 banks do at the moment (here ANZ ... hint: the blue graph represents HBL) ... and be pleased about a stubbornly stalled share price - I am.
Attachment 7954

Yes, it may be that my own expectations are not adapting to these uncertain times.

[winner69]

Heartland strategic focus on SMEs and their 'Open for Business' initiative must be working big time.

BNZ feel they must be missing out. Unusual for them to use radio (quite intensive campaign) advertising - telling small business owners the BNZ can help their business become big. And they have $1 billion to lend.

Go Heartland - stick it up the big banks by looking after those that are often ignored. You have them worried

And still no profit upgrade from Jeff

[Snow Leopard]

Heartland strategic focus on SMEs and their 'Open for Business' initiative must be working big time.

BNZ feel they must be missing out. Unusual for them to use radio (quite intensive campaign) advertising - telling small business owners the BNZ can help their business become big. And they have $1 billion to lend.

Go Heartland - stick it up the big banks by looking after those that are often ignored. You have them worried

And still no profit upgrade from Jeff

I believe Captain Jeff & his crew are carefully offsetting the headwind against the favourable current.

Best Wishes
Paper Tiger

[winner69]

I believe Captain Jeff & his crew are carefully offsetting the headwind against the favourable current.

Best Wishes
Paper Tiger

I gather there are no headwinds

I get it now - probably a balancing act of maximising this years bonus while leaving something for next year.. Just conjecture

So something like $55m for F16 is it then

[Snoopy]

Snoopy wrote
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That is close to the 10% ROE that Heartland is projected to achieve for FY2013.

In addition to this Heartland in common with all other banks will be facing the new Basel III capital conservation buffer (CCB) requirements that will increase the backup equity required to be held on the balance sheet significantly.

Even assuming all those doubtful Heartland property loans on the books coming good (no more capital destroying provisions for bad debts) , the picture that emerges here is irrefutable. Heartland has a very fully stretched balance sheet as everything stands now. There is very little room for growth beyond FY2013 with such a constrained capital base

-------

Above posted on 25/11/2013.
Just love the last sentence.
Yet only one Australasian bank has excess capital.HBL.

Percy, I think your memory is being a little selective.

On 19th February 2014 , -after I made my post- , Heartland issued $15m worth of new capital to institutions. This was supplemented on 25th March 2014 by a further $5m of new shares issued to existing shareholders in relation to an underwritten share purchase plan.

Then on 1st April 2014, Heartland issued new shares worth $37m to Seniors Money International, which IIRC was in relation to the Home Equity Release Portfolio purchase. That was a total of 56m of new shares issued within a couple of months.

This is all completely separate from the new capital raised by the dividend reinvestment plan. (FY2014: $6.662mm), (FY2015: $$6.624m)

So total new capital issued over the two full years FY2014 and FY2015 was around $70m.

At EOFY 2015 share equity was $480m. So that $70m raised is around 15% of the capital now on the books. Now why did HNZ have to raise such a large amount of capital? Because it wasn't prudent to further leverage their balance sheet to make the acquisitions they did without doing so. So not only does my claim of 25/11/2013 of Heartland being short of capital stand. It has proven to have been true!

Now, moving onto the much talked about 'share capital return' to shareholders. I believe that consummate with this, Heartland are proposing to issue some Tier 1 bonds which will count as capital for reserve bank requirement purposes. The proposal then is not to reduce the capital of the bank. The proposal is to lower the share capital, and replace that with bond capital. IMO this makes this whole discussion of HBL having excess capital moot. The true picture is quite the contrary. Heartland freely issue new capital with their acquisitions, and there is no plan on the table to reduce overall capital on the books.

SNOOPY

[Snow Leopard]

Percy, I think your memory is being a little selective.

On 19th February 2014 , -after I made my post- , Heartland issued $15m worth of new capital to institutions. This was supplemented on 25th March 2014 by a further $5m of new shares issued to existing shareholders in relation to an underwritten share purcahse plan.

Then on 1st April 2014, Heartland issued new shares worth $37m to Seniors Money International, which IIRC was in relation to the Home Equity Release Portfolio purchase. That was a total of 56m of new shares issued within a couple of months.

This is all completely separate from the new capital raised by the dividend reinvestment plan. (FY2014: $6.662mm), (FY2015: $$6.624m)

Snoopy, I think your memory is being a little selective.

The full details were:
$20M cash from the issue of new shares (as above);
$37M of new shares (@ $0.90 each) as above;
and $28.3M from the 'very fully stretched balance sheet'.

As for the 'new' capital raised by the dividend reinvestment plan - I laugh in your general direction.

Best Wishes
Paper Tiger