HGH - Heartland Group Holdings

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[. A bit like Pike.

Come on mouse.. Hnz is not " A bit like Pike. "..

Pike was pie in the sky.. Just like NZO is.. A promise of millions " IF "..

There is no " IF " in a Bank Managers responsibilities today !!..

" Next, what expertise does Heartland have in its specific lending area? ".

They have dealt and won, dealing with GK .. !!.. Coming out of the other end smelling of roses..

Mouse... This is not a time IMPO.. to be taking on Toyota Debt.. OK.. OK.. I am the original scrooge..

Better to keep your old dunger and invest in HNZ.. :-))

Go for the ROLLER..


A good question.. !!..


It lends on Property. Commercial and Residential. The two require different experience.
They lend on machinery. Is it Farm machinery, or Civil Engineering equipment. What sort of market exists for the stuff?, what is it worth second hand?
I think they even lend on Cows.
They operate all over NZ. I suspect they cannot have all the expertise at every branch.

I would appreciate ideas on the above comments. I think Heartland cannot trade above 90 cents in the next two years, to December 2014.[/QUOTE]

[mouse]

My Toyota Debt is interesting. It is a new car. Interest rate is 2.5%. Plus set-up costs. So I pay around $800 interest including set-up costs for a two year loan. Now the reason I am giving these details is that most new cars are sold with 'manufacturers finance.' Currently between zero and 5%. Which Heartland cannot, and should not, compete against.
The leaves Heartland only able to make vehicle loan on second-hand vehicles. Which are at a greater risk of having trouble. (My Toyota has a five year free servicing and five year warranty). Similar situations would probably apply to Industrial and Farming Machinery. The manufacturer providing finance. Again leaving Heartland with loans on second-hand machinery which may only have an economic life of ten years.
My point is, vehicles require specialist knowledge to make a profit from financing them. It was Marac that produced the outstanding profit results for Pyne Gould and Marac that produced the losses thatdrove them almost to bankruptcy. Borrowers must be both willing to pay and able to pay.
This is just one simple example of problems facing all financial institutions.
Heartland has a very wide lending scope. Do they have the expertise required for that scope?

I do not know. I would appreciate discussion on the situation.
Pike by the way is very similar to Heartland. Both are 'start-ups' and Heartland needs a continuing level of support from their shareholders. Should the shareholders not give the support then they will see their holding diluted.

[percy]

My Toyota Debt is interesting. It is a new car. Interest rate is 2.5%. Plus set-up costs. So I pay around $800 interest including set-up costs for a two year loan. Now the reason I am giving these details is that most new cars are sold with 'manufacturers finance.' Currently between zero and 5%. Which Heartland cannot, and should not, compete against.
The leaves Heartland only able to make vehicle loan on second-hand vehicles. Which are at a greater risk of having trouble. (My Toyota has a five year free servicing and five year warranty). Similar situations would probably apply to Industrial and Farming Machinery. The manufacturer providing finance. Again leaving Heartland with loans on second-hand machinery which may only have an economic life of ten years.
My point is, vehicles require specialist knowledge to make a profit from financing them. It was Marac that produced the outstanding profit results for Pyne Gould and Marac that produced the losses thatdrove them almost to bankruptcy. Borrowers must be both willing to pay and able to pay.
This is just one simple example of problems facing all financial institutions.
Heartland has a very wide lending scope. Do they have the expertise required for that scope?

I do not know. I would appreciate discussion on the situation.
Pike by the way is very similar to Heartland. Both are 'start-ups' and Heartland needs a continuing level of support from their shareholders. Should the shareholders not give the support then they will see their holding diluted.

Marac do supply "manufactures finance" Mazda and others.Years of successful motor vehicle finance.Reputable second hand dealers,no Honest John Motors.
Marac LOST money [as did most finance companies] on proprty development which they did not understand.They no longer lend to this sector.
The rest of Marac is excellent.Very strict guidlines on ALL lending.
HNZ is not a start up.Each party to the merger has been in business for a good number of years. HNZ is PROFITABLE after spending a fortune in legal fees on the mergers and huge fees getting the banking licence.Now has a banking licence [ie like a new Toyota] and has started paying a dividend.HNZ have been honest in what they sey out to do,and have achieved all they said they would.
Read the annual report and the presentations and you will find ALL the answers to your questions there. Nice pie graphs on lending,which regions,borrowings,everything.
Remember Pike could not even get the tunnel to the coal right.What, twice the cost and three times the time taken.?
Go to HNZ web page www,heartland.co.nz to get all the information you require.

[percy]

Mouse.
To try and understand your Toyota debt,think "interest free" TVs etc from Smiths City,or Noel Leemings.You may get low interest or no interest terms,but the retailer pays the interest.Toyota,Smiths City,Leemings don't get interest free money,your interest payments savings comes out of their mark up.It is a " marketing ploy".

[mouse]

Mouse.
To try and understand your Toyota debt,think "interest free" TVs etc from Smiths City,or Noel Leemings.You may get low interest or no interest terms,but the retailer pays the interest.Toyota,Smiths City,Leemings don't get interest free money,your interest payments savings comes out of their mark up.It is a " marketing ploy".

Not exactly with new cars. All car makers are stuck world wide with stuff they cannot move. Hence these very low interest rates, plus even a low price on the car. Which is considerably helped by a very strong NZ dollar. The point is, in this situation that Heartland ends up financing only second hand cars. Which have a much higher chance of turning into a lemon, and thus a bad debt. I am very happy with Marac expertise being transferred to Heartland. So they know about car finance. But they are lending at a higher risk.
My query, and I repeat it, is the wide range of finance that Heartland is providing. Do they have the expertise to do it?

Next, I managed to buy 15,000 Heartland at 50 cents. Which has now put me close to being in the black with costs for Heartland. But those not in my fortunate position must be very seriously wanting to sell shares that have cost a lot of investors a lot of cash. Hence my idea that the shares have a natural price ceiling for the next couple of years of 90 cents. Any ideas on that? What sort of price can we realistically forecast by December 2014?

[percy]

Not exactly with new cars. All car makers are stuck world wide with stuff they cannot move. Hence these very low interest rates, plus even a low price on the car. Which is considerably helped by a very strong NZ dollar. The point is, in this situation that Heartland ends up financing only second hand cars. Which have a much higher chance of turning into a lemon, and thus a bad debt. I am very happy with Marac expertise being transferred to Heartland. So they know about car finance. But they are lending at a higher risk.
My query, and I repeat it, is the wide range of finance that Heartland is providing. Do they have the expertise to do it?

Next, I managed to buy 15,000 Heartland at 50 cents. Which has now put me close to being in the black with costs for Heartland. But those not in my fortunate position must be very seriously wanting to sell shares that have cost a lot of investors a lot of cash. Hence my idea that the shares have a natural price ceiling for the next couple of years of 90 cents. Any ideas on that? What sort of price can we realistically forecast by December 2014?

No difference between TVs or cars.Dealers have to pay for the cheap finance deals.
Marac only supports good dealers.Have a successful record on car lending.Both new and used.Your Toyota will still be a good car in 15 years time.
From reading the annual report and presentations you will understand HNZ do have the expertise,to undertake what they are doing.It is not rocket science.Rural lending officers are all PGW based.Marac has car,and machinery expertise,CBS have home loans expertise.Only new areas they are moving into are health and education.The health area I take they will fund expensive operations to asset rich cash poor clients.
For those who have their HNZ shares from PGC distribution,they can look to the future with confidence,owning shares in NZ's only listed bank.We can not change history,only learn from it.Property developement ruined PGC.From the ashes we have HNZ,who do what they say they will do.
You were very astute to buy another 15,000 HNZ at 50cents.Must have seemed like madness at the time.Now enjoy the divies,and whatch your shares go from strength to strength.Those selling have access to the same information as you,but lack your foresight.
At 12.35 pm on 12th December 2014 the share price will be $1.57,however 2015 will see the share price at $2.38 and it will be over $3.00 by December 2016..Will need a new crystal ball to see beyond 2016.[should prices be different from mine,you will know 'the market'got it wrong.]

[janner]

Not exactly with new cars. All car makers are stuck world wide with stuff they cannot move. Hence these very low interest rates, plus even a low price on the car. Which is considerably helped by a very strong NZ dollar. The point is, in this situation that Heartland ends up financing only second hand cars. Which have a much higher chance of turning into a lemon, and thus a bad debt. I am very happy with Marac expertise being transferred to Heartland. So they know about car finance. But they are lending at a higher risk.
My query, and I repeat it, is the wide range of finance that Heartland is providing. Do they have the expertise to do it?

Next, I managed to buy 15,000 Heartland at 50 cents. Which has now put me close to being in the black with costs for Heartland. But those not in my fortunate position must be very seriously wanting to sell shares that have cost a lot of investors a lot of cash. Hence my idea that the shares have a natural price ceiling for the next couple of years of 90 cents. Any ideas on that? What sort of price can we realistically forecast by December 2014?

Crystal Balls are in shorter supply than normal at the moment mouse. Unable to even hazard a guess ..

Being a " realist ".. I can only take a companies past performance into account and try to see if it will continue or not on the same path.. Taking notice of the various winds and currents the company is up against or has in it's favour..

Also It's crew.. and most importantly . It's design.. I am happy with the design and the crew..

There is I think, a wind of change against the Aussie Banks.. The " man in the street " is waking up..

PLUS.. It is servicing the HEARTLAND PEOPLE..

The hard working back bone of this country.. Who do not run every weekend to the Sylvia Parks of this country waving their plastic ..

Disc... Holding and building..

[percy]

[QUOTE=janner;388839]Crystal Balls are in shorter supply than normal at the moment mouse.





Got mine from Briscoes 60% off.No instructions with it.

[janner]

[QUOTE=percy;388841]

Crystal Balls are in shorter supply than normal at the moment mouse.





Got mine from Briscoes 60% off.No instructions with it.

With Guarantee ???.. Take a Taxi and buy me two... the cheque is in the post..

[mouse]

[QUOTE=percy;388841]

Crystal Balls are in shorter supply than normal at the moment mouse.





Got mine from Briscoes 60% off.No instructions with it.

A Bargain. Hopefully Tammy was promoting them. Crystal Ball Gazing being almost a University Course, 101, now. Illuminated Crystal Balls being a Masters degree. I got all the crystal balls in stock at Briscoes. Now have to learn to drive them. Do they come with a Genie?
Seriously, the problem is that so many have been seriously burnt with Pyne Gould. I think they will bale out. I am more or less OK. But very pessimistic about the whole economy, particularly Oz, America and Europe. I think we will almost be OK.