HGH - Heartland Group Holdings

[Beagle]

Very difficult to get a full year's eps on shares that will have been issued for under 4 months,I would think.

I agree. These things are measured on a weighted average number of shares on issue that takes into account the timing of new share issuance.
I am confident on this correct approach earnings growth will be in the double digits per share.
Like you Percy, I am somewhat surprised they haven't made a tier 2 capital issuance. I would have thought with prevailing interest rates still being low there would be solid demand for a ~ $50m issue at ~ 6%.
Perhaps its important that Tier 1 capital ratio's are nice and robust first ? In any event I expect a Tier 2 issue at some stage which will be EPS accretive.

[iceman]

Currently have a small holding (big for me) and don't have $15k sitting around. Don't want to sell other shares either. Seems like best option for me would be to sell my HBL shares and use the money for the offer. Dilution would mean I end up with less and would have to spend the amount I get back on something though.

I would consider forgetting the SPP in your case Matthew and subscribing to a full participation in the DRP.

[percy]

I agree. These things are measured on a weighted average number of shares on issue that takes into account the timing of new share issuance.
I am confident on this correct approach earnings growth will be in the double digits per share.
Like you Percy, I am somewhat surprised they haven't made a tier 2 capital issuance. I would have thought with prevailing interest rates still being low there would be solid demand for a ~ $50m issue at ~ 6%.
Perhaps its important that Tier 1 capital ratio's are nice and robust first ? In any event I expect a Tier 2 issue at some stage which will be EPS accretive.

I think we are seeing it differently from HBL's point of view.
Where you and I see they should raise $60mil to $80 mil with Tier 2, to fund growth over the next year or two,HBL keep going on about having too much capital which they see as affecting their figures,so they prefer to raise the capital just before they need it.
I think we will just have to accept that is the way they are going to do it.

[Snow Leopard]

...What yoiu make of the NTA not increasing from June to December?

What you make of Paper Tigers comment - 'On current profit guidance of up to $60M - FY EPS growth would be less than 5%.'



Some of the basic valuation metrics not looking too flash?

I think what worries me the most, winner69, about the answers to your questions apart from the euphoric & glib nature of them (the answers that is, not the questions) is that very few of us actually appear to be thinking.

Obviously I am personally 'well miffed' that it apparently has not occurred to the likes of Roger and percy that I, the Paper Tiger, had taken the diluted nature of EPS results into account already.

Perhaps $1.46 whilst a discount to the current market price is not actually a discount to fair value!

Best Wishes
Paper Tiger

*alternative title: Move over Snoopy, I can take it from here.

[BlackPeter]

Care guys...I would guess most on here (other than Percy perhaps) would be classified as small share holders. So we get an advantage with this type of blanket 15K allocation.
I'm quite happy with the system.

Cheers
RTM

We won't get a $15k allocation, though. We have only the right to apply for $15k worth of new shares and to give them an interest free loan for this amount. We might get (if we are really lucky and half of us don't bother) less than 1/3rd of the applied for number of shares. If everybody applies for the full sum it would be roughly $2k worth of shares (and $13k returned) for everybody. I intend to apply for the full sum, but realistically will consider myself as lucky if I get $5k worth of shares out of this exercise.

I would have preferred a renounceable rights issue for the full CR including institutions (i.e. $40m) ...

[winner69]

I think what worries me the most, winner69, about the answers to your questions apart from the euphoric & glib nature of them (the answers that is, not the questions) is that very few of us actually appear to be thinking.

Obviously I am personally 'well miffed' that it apparently has not occurred to the likes of Roger and percy that I, the Paper Tiger, had taken the diluted nature of EPS results into account already.

Perhaps $1.46 whilst a discount to the current market price is not actually a discount to fair value!

Best Wishes
Paper Tiger

*alternative title: Move over Snoopy, I can take it from here.

I agree (I think we saying same thing with tiger talk and bee,s buzzing lingo)

While doing EPS on weighted number of shares is the way its done isn't it ironic that the dividend pool is shared out on actual (or to be post SPP) number of shares - hence no increase in dividend ....hmm

[Turtle2]

Matthew be happy that you hold some HBL,don't be greedy.
If you don't have any spare money, forget the SPP.
I usually have a bit of rainy day money at hand,and that's what I will be using [if the wife has not cleaned it out already.!].

Thanks percy and iceman. Wise as always!

[kizame]

Can I ask someone far more knowledgeable than I, Why does't HBL do an SPP at say $6,000/shareholder foregetting the largest institutions,Because they have already participated.
Lets say 7,000 are given the opportunity to apply for $6,000 worth of shares,thats $42M.
This would then alleviate the need for a tier 2 issue in Aus. Or is it that they are only doing that partly to increase their exposure over there,and hence their credibility?
If they can use the capital,why not have a wee bit too much now,to be used later,it's not costing them,apart from maybe return on equity short term?
This may sound dumb to some,but just out of interest.

[winner69]

Like the Virgin Air say "balance sheet optimistaton' is key

[kizame]

Like the Virgin Air say "balance sheet optimistaton' is key

But tier 2 capital is costing them interest, SPP only increases shares on issue no?