HBL has never traded at such lofty price/book multiples as it is today. Over the last year that multiple has gone from 1.1 to 1.4. (Analysts like Craigs seem to think either price/book or price/NTA are the preferred multiples to use)
A year ago (day of announcement) HBL share price was $1.13 - it of course is now $1.50 - up33%
Of the 37 cents increase 34 cents has come from that multiple expansion. The other 3 cents from improved Heartland financials.
So most of the share price increase has from improved market sentiment rather than actual performance. Much the same has happened with market leaders like Fletcher Building and Spark so it seems pretty widespread
We (Heartland shareholders) have benefited from the general market increased enthusiasm for stocks. Heartland has played it's bit by not stuffing up but the 33% has mainly come from a enthusiastic market
Long may it continue - the market appears to still have a lot of 'enthusiasm' left and HBL shares should continue to rise in line with this enthusiam
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Well end of the week and Heartland is back as my single biggest holding on the NZX having pipped Scales.
I blame tj.
Best Wishes
Paper Tiger
What does the TA tell us, now that it has an almost uninterrupted stunning 2 month appreciation, slamming into/through the upper 2.5 Std Deviation 20SMA (Bollinger) which has always portended a reversal? Bloody good run that's for sure, up 30% in a couple of months, question must be how sustainable it is from here, where / when to take profits, or not.
What does the TA tell us, now that it has an almost uninterrupted stunning 2 month appreciation, slamming into/through the upper 2.5 Std Deviation 20SMA (Bollinger) which has always portended a reversal? Bloody good run that's for sure, up 30% in a couple of months, question must be how sustainable it is from here, where / when to take profits, or not.
TA tells you & me it has gone up, no more no less.
As for upper 2.5 Std Deviation 20SMA (Bollinger)
Yes definitely.
Best Wishes
Paper Tiger
Disc: The future is not yet known, but in an infinite universe anything can happen & often does.
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Originally Posted by Paper Tiger
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