HGH - Heartland Group Holdings

**percy** · 18-04-2016, 07:54 PM

Originally Posted by K1W1G0LD

Percy, you deserve Guru status , being overlooked on here . I see Winners getting all enthusiastic again .................beware ...................shareprice will go down again now.
toodle pip.

We don't need to concern ourselves with what others do.
Just a matter of trusting our own research.
A lot easier when HBL do what they say they will do.
ps.I am more than happy to remain a percy.Guru,never.![they seem to change their minds too often to be a real percy].lol.

**King1212** · 18-04-2016, 08:01 PM

Originally Posted by percy

HBL taking over UDC would make very good sense.
HBL have stated any acquisition would have to be earnings accretive.
HBL at today's $1.21, is trading on a PE of 11.32.So would they pay a PE of 9 for UDC.?That would be just over $513mil which is a long way short of the $600 to $700 mil talked about.
HBL's market cap today is $576.5mil.A large cap raising would be needed.Yet if it added up it would be well supported .
Would ANZ take HBL scrip to get UDC off their books?
Another case of a distressed business [ANZ] selling off the crown jewels?
Nice to see the opportunities coming HBL's way.
Still no decision in the MTF Sportzone case.MTF would be a great "bolt on" acquisition for either HBL, or HBLUDC.!
All of this confirms that HBL, having excess capital while the Aussie banks need to raise capital,means the correlation between HBL and the Aussie banks is wrong,and HBL's share price has been mispriced by the market.

ps.Google 60 minutes Moranbah housing,and you can understand why Aussie banks require more capital.

Bravo percy..if u think HBl's share has been mis priced...what price do u believe HBL is valued at?

**trader_jackson** · 18-04-2016, 08:03 PM

Originally Posted by winner69

Looking forward to t_j homework answers though

I am very excited, like many on here, but I'll let the far more experienced people handle this major acquisition.

Re the NCEA: I've passed NCEA a few years ago, with... I would certainly say I was very "well positioned" for university entrance (at the time)

What I will say is the I believe Heartland is "well positioned" to take on UDC

**nextbigthing** · 18-04-2016, 08:17 PM

Originally Posted by King1212

what price do u believe HBL is valued at?

Originally Posted by ziggy415

$1.60 by christmas ha ha

Please pay attention.

**Beagle** · 18-04-2016, 08:18 PM

I think HBL's chances of getting UDC on a PE lower than their own are slim to none. Not nearly as many questions over UDC's asset quality and run as a far tighter ship. Warrants a PE premium IMO.
I seriously doubt ANZ are distressed sellers and I think NBR's behind the paywall story on $600m - $700m is where this is at which would imply a massive cash issue if HBL could be put into a position to execute a transaction.

I predicted back in November 2015 that the Supreme court Sportzone decision regarding MTF would be many months coming, suggested 5-6 months.

**percy** · 18-04-2016, 08:26 PM

Originally Posted by King1212

Bravo percy..if u think HBl's share has been mis priced...what price do u believe HBL is valued at?

I seem to remember stating I thought the "fair" share price for Heartland Bank was between $1.25 and $1.35.
With interest rates set to remain, or go lower, maybe my "fair" valuation is now a bit light?
Share price $1.35,dividend 8 cents gives a yield of 5.92%,while at $1.45 the yield is 5.5%.
Today's share price of $1.21 the yield is 6.61%.
The catalyst for HBL's sp will be the multiplies, and the nature of their next acquisition.
A UDC takeover would see a higher re-rating than a MTF takeover.

**trader_jackson** · 18-04-2016, 08:29 PM

http://www.afr.com/street-talk/anz-e...0160415-go721l

Remember we are not alone in a potential bid...

(and remember that old AFR trick to see the article!)