sharetrader
Page 783 of 1721 FirstFirst ... 2836837337737797807817827837847857867877938338831283 ... LastLast
Results 7,821 to 7,830 of 17210
  1. #7821
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    It is a fact that companies whose ROE and eps increase,have the capacity to pay increasing dividends, will see their share price increase.
    In today's environment of on going low interest rates, the market is looking for companies with strong balance sheets,that are paying good dividends,and have the capacity to increase them.
    I see Heartland fitting the bill on all measures.
    No need for flicking coins when you have done sound research.I leave that to Tossers.

  2. #7822
    Advanced Member
    Join Date
    Dec 2009
    Location
    Eastern BoP..
    Posts
    1,808

    Default

    Quote Originally Posted by percy View Post
    No need for flicking coins when you have done sound research.I leave that to Tossers.
    Well put :-)))

  3. #7823
    Senior Member
    Join Date
    Nov 2013
    Posts
    573

    Default

    Quote Originally Posted by percy View Post
    It is a fact that companies whose ROE and eps increase,have the capacity to pay increasing dividends, will see their share price increase.
    In today's environment of on going low interest rates, the market is looking for companies with strong balance sheets,that are paying good dividends,and have the capacity to increase them.
    I see Heartland fitting the bill on all measures.
    No need for flicking coins when you have done sound research.I leave that to Tossers.
    Has Brexit realy changed anything with regards to new zealand....the potential down the track maybe with regards to higher interest rates, but for now nz will keep trucking along....we will get trade deals with europe and britain on similar terms as now....bargains abound on the nzx

  4. #7824
    On the doghouse
    Join Date
    Jun 2004
    Location
    , , New Zealand.
    Posts
    9,221

    Default Impairment Provisions: Hero or Zero?

    Quote Originally Posted by Snoopy View Post
    A problem is bank balance dates provide a snapshot of what is happening. But a 'snapshot of impaired assets' is just that. Impaired assets are dynamic and changing. From an investment perspective I want to know what will happen in the future.
    For this morning's 'question of the day' I am reverting to my favourite subject - impairment :-) - and specifically the non-core property portfolio of FY2013 (or is that the non-core dairy portfolio of FY2017).

    Now, a Heartland banker who makes an impairment provision is seen as

    A/ prudent, far sighted, managing debts to best practice and responsible.

    OTOH a Heartland banker who has to write off a loan is seen as

    B/ reckless, lacking in due diligence, ill disciplined and squandering resources.

    Now the curious bit. At the end of the day whether a loan is written off in advance by 'provisioning' or written off immediately in an 'expense' makes no difference to the long term position of Heartland bank. So my question is, are Heartland's senior loan managers best characterised by A/ or B/ ?

    SNOOPY
    Last edited by Snoopy; 28-06-2016 at 08:54 AM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  5. #7825
    always learning ... BlackPeter's Avatar
    Join Date
    Aug 2007
    Posts
    9,497

    Default

    Quote Originally Posted by ziggy415 View Post
    Has Brexit realy changed anything with regards to new zealand....the potential down the track maybe with regards to higher interest rates, but for now nz will keep trucking along....we will get trade deals with europe and britain on similar terms as now....bargains abound on the nzx
    Well, yes - BREXIT has changed some things re NZ markets:

    * NZD went up ... i.e. reserve bank likely to further drop interest rates.
    * British consumers have less money (due to dropping pound sterling) - i.e. British consumers can buy less (including from us). This will impact our exports as well as tourism; Might impact as well on our housing market (potentially more UK immigrants but with less money), which may or may not be a good thing;
    * British unemployment is going to rise (well, this is not just common sense, but as well what the crown analysts predicted (check out the links hoop posted) - i.e. less money for the British consumer - consequences see above.
    * NZ just negotiating a free trade deal with EU. Getting too cosy with Britain during this time might impact on our chances to be successful with the continent. Will be an interesting balancing act;

    Still agree, that we have at this stage likely some bargains in our stock market ... this is unless the British disease is spreading.
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  6. #7826
    Speedy Az winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    37,737

    Default

    Quote Originally Posted by Snoopy View Post
    For this morning's 'question of the day' I am reverting to my favourite subject - impairment :-) - and specifically the non-core property portfolio of FY2013 (or is that the non-core dairy portfolio of FY2017).

    Now, a Heartland banker who makes an impairment provision is seen as

    A/ prudent, far sighted, managing debts to best practice and responsible.

    OTOH a Heartland banker who has to write off a loan is seen as

    B/ reckless, lacking in due diligence, ill disciplined and squandering resources.

    Now the curious bit. At the end of the day whether a loan is written off in advance by 'provisioning' or written off immediately in an 'expense' makes no difference to the long term position of Heartland bank. So my question is, are Heartland's senior loan managers best characterised by A/ or B/ ?

    SNOOPY
    Good question

    I reckon A ........as long s it's seen as proactive provisioning to smooth earnings growth
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  7. #7827
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,221

    Default

    Quote Originally Posted by ziggy415 View Post
    Has Brexit realy changed anything with regards to new zealand....the potential down the track maybe with regards to higher interest rates, but for now nz will keep trucking along....we will get trade deals with europe and britain on similar terms as now....bargains abound on the nzx
    Brexit and Heartland.
    Funding;Unlike the Aussie banks HBL does not rely on any European wholesale funding.So no funding problems for Heartland,who have 38,000 individual depositors,19,000 of whom have been with Heartland for 10 years or more..
    Interest rates;Should interest rates increase all banks, including Heartland, will do well as their margins increase.
    ....................;Should interest rates stay low,Heartland has been steadily improving their net interest margin over the past four years and that looks set to continue.
    ......................With their capacity to grow dividends [projected to be 9cents per share fully imputed for 2017] ,strong equity ratio,I would think investors will be attracted to Heartland.From what I have read The Reserve Bank of NZ is more likely to reduce interest rates than increase them
    Last edited by percy; 28-06-2016 at 10:22 AM.

  8. #7828
    Senior Member
    Join Date
    Dec 2009
    Posts
    702

    Default

    Quote Originally Posted by percy View Post
    It is a fact that companies whose ROE and eps increase,have the capacity to pay increasing dividends, will see their share price increase.
    In today's environment of on going low interest rates, the market is looking for companies with strong balance sheets,that are paying good dividends,and have the capacity to increase them.
    I see Heartland fitting the bill on all measures.
    No need for flicking coins when you have done sound research.I leave that to Tossers.
    If everyone was an Accountant, then you would be right.
    But people can become panicked. DON'T PANIC!
    Markets can go all over the place.
    However, we can be thankful that Heartland runs on cash borrowed in NZ. PLUS that they have a pretty diversified loan book.
    The sp can go up, or more likely down. Since we in NZ cannot escape a Global Meltdown...Or even heavy rain.

  9. #7829
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by Snoopy View Post
    For this morning's 'question of the day' I am reverting to my favourite subject - impairment :-) - and specifically the non-core property portfolio of FY2013 (or is that the non-core dairy portfolio of FY2017).

    Now, a Heartland banker who makes an impairment provision is seen as

    A/ prudent, far sighted, managing debts to best practice and responsible.

    OTOH a Heartland banker who has to write off a loan is seen as

    B/ reckless, lacking in due diligence, ill disciplined and squandering resources.

    Now the curious bit. At the end of the day whether a loan is written off in advance by 'provisioning' or written off immediately in an 'expense' makes no difference to the long term position of Heartland bank. So my question is, are Heartland's senior loan managers best characterised by A/ or B/ ?

    SNOOPY
    You forgot option C - With great reluctance and after a great deal of time has passed and considerable forbearance has been shown, reluctantly doing what is only done as an absolute last resort because all possible efforts aimed at recovery, rescheduling, restructuring, refinancing or otherwise avoiding recognising a loss have been completely and utterly exhausted and the loan has irrevocably failed with absolutely no chance whatsoever of even a partial recovery. This is only done after all channels of recovery have been fully exhausted including any proceedings taken against guarantor's if any and liquidation of all assets held as security.

    That's how most finance companies and banks operate.
    Last edited by Beagle; 28-06-2016 at 03:59 PM.

  10. #7830
    Senior Member
    Join Date
    Dec 2009
    Posts
    702

    Default

    Quote Originally Posted by Roger View Post
    You forgot option C - With great reluctance and after a great deal of time has passed and considerable forbearance has been shown, reluctantly doing what is only done as an absolute last resort because all possible efforts aimed at recovery, rescheduling, restructuring, refinancing or otherwise avoiding recognising a loss have been completely and utterly exhausted and the loan has irrevocably failed with absolutely no chance whatsoever of even a partial recovery. This is only done after all channels of recovery have been fully exhausted including any proceedings taken against guarantor's if any and liquidation of all assets held as security.

    That's how most finance companies and banks operate.
    Meanwhile, of course, the loans have been 'rolled over' so that it can be claimed that there are Zero loans in arrears. The loan book is Healthy. Do Not Worry.
    But.............at the back door those in the know are lined up for their cash.
    I hasten to add that I think Heartland is pretty solvent, and I am not selling atm.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •