HGH - Heartland Group Holdings

[Snow Leopard]

So I have sold down a few HBL to make up the available cash to apply for the full $15K.

Add whatever I get in the SPP to all I can get in the DRP and I would be back to being overweight in HBL.

The cash back on the SPP will go into something else with, hopefully, even higher future returns.

Best Wishes
Paper Tiger

[silu]

Btw does anyone know when the unused money after scaling will be refunded?

[777]

3 to 4 days usually.

[silu]

3 to 4 days usually.

Thanks - that helps in adding perhaps a couple of thousand to my application.

[NZINOZ]

Hi everyone, I'm a first time poster but long time watcher of this thread. I am a kiwi living in Australia whose sons have a joint shareholding in HBL. We are wondering if anyone knows the best way to sell shares from in Australia? We were back in NZ a year or so ago and tried to sell them but they said as we were living in Australia we had to sell them here. Finding it difficult to locate a broker who will deal with NZ shares. Any suggestions?

[Snoopy]

Hounds usually run in packs so its curious how the other hound's always been way off trail from the hunt with this one.
I like running with tailwinds so previously enjoyed a marvelous run from mid 80 cent mark just after the credit rating upgrade in early 2014 to low 130's in early 2015 when dairy risks starting looking ominous.
Now I sense we're in a period of tailwinds again and maybe even a further credit rating upgrade is possible so am happy to be snapping up juicy dividends and capital gains again
Disc: Tail up and wagging, holding and applying for full $15K of shares under SPP and full participation in the dividend reinvestment scheme.

I think my reasons for not investing in Heartland have been well docmented. I have had a good holding in banking shares for years, mainly ANZ and WBC in my 'Ozzie' portfolio. I don't particularly want to be invested in three Australasian banks. So if I was to invest in Heartland, one of these would have to go. My WBC analysis is yet to come. But my snapshot comnparison with ANZ bank tells the story:

	ANZ	Heartland
Return on shareholder Equity FY2016	11.8%	10.7%
Net Profit Margin (Sustainable Profit/Gross Interest Revenue) FY2016	22.8%	20.1%
Average NZ Gross Dividend (FY2013 to FY2017)		= 7.66cps / 0.72 = 10.6cps
Average Aus Gross Dividend (FY2013 to FY2017)		7.66cps
Average NZ Gross Dividend (FY2012 to FY2016)	$A1.524ps
Average Aus Gross Dividend (FY2012 to FY2016)	$A1.986ps
Share Price 02-03-2017	$A31.32	$1.59
Average Gross NZ Yield 02-03-2017	4.87%	6.66%
Average Gross Aus Yield 02-03-2017	6.34%	4.82%

On the two operational measures that most matter, ANZ wins. The gross yield, thanks to NZ imputation credits is favourable for Heartland. However, if you reverse the perspective and look at what an Australian investor would see, ANZ offers the better yield (due to Aussie franking credits the Australians can access, while being unable to access our NZ imputation credits for Heartland). The value of ANZ shares is largely determined by Australian investors, and the value of HBL shares is largely determined by NZ investors. Looking at the home market yield comparison (Heartland 6.66% vs ANZ 6.34%) there is very little difference.

Heartland is getting better with time, this is true. But Heartland does not generate nearly as much cash as ANZ. Since formation Heartland has only paid a net 30% of their earnings as dividends (if you remove the capital value of the new shares issued from the total divdends declared). This isin't unusual for a growth company. But the return on all this new equity at Heartland is not that flash. Given that Heartland has been running with tailwinds since 2013, what happens to these 'not so flash' returns if the tailwind starts to lose its puff?

I'll keep watching Heartland for sure. But from an investment perspective going forwards, I think that I will get a better return by continuing to hold ANZ shares. At $1.59, the investment case for Heartland does not stack up for this bargain hunter.

SNOOPY

PS My previous comparison with SKL was somewhat spurious given HBL and SKL are in quite different business areas. But both shares had share prices in the $150s and both paid similar levels of dividends. So the comparison caught my eye.

[Toasty]

Hi everyone, I'm a first time poster but long time watcher of this thread. I am a kiwi living in Australia whose sons have a joint shareholding in HBL. We are wondering if anyone knows the best way to sell shares from in Australia? We were back in NZ a year or so ago and tried to sell them but they said as we were living in Australia we had to sell them here. Finding it difficult to locate a broker who will deal with NZ shares. Any suggestions?

Hi there. My suggestion would be to approach whichever bank you deal with and ask them about their share trading facilities. ANZ, for instance, runs a platform called ANZ Securities. This should definitely be available in Australia. Should be cheaper than a full service broker too.

https://shareinvesting.anz.com/Inves...s/Default.aspx

I'm not from ANZ if that helps...

[Beagle]

Not much time at the minute Snoopy but please remind me again how EPS has grown comparing ANZ with HBL over the last five years.

As an aside I don't invest in Australian companies because this hound absolutely detests paying tax twice. The fact that N.Z. residents cannot claim Australian franking credits makes a complete mockery of so called closer economic relations.

[peat]

Hi everyone, I'm a first time poster but long time watcher of this thread. I am a kiwi living in Australia whose sons have a joint shareholding in HBL. We are wondering if anyone knows the best way to sell shares from in Australia? We were back in NZ a year or so ago and tried to sell them but they said as we were living in Australia we had to sell them here. Finding it difficult to locate a broker who will deal with NZ shares. Any suggestions?

We work with anyone who has a NZ IRD no, and a NZ bank account. Obviously subject to relevant AML laws and photo-ids etc
PM me

[percy]

A game of spot the difference.
Earnings per share,from www.4-traders.com
.................2014........2015.....2016.......2 017......2018.......2019..
ANZ............257.........257........189........2 35........245.........256.
CBA............519..........529.......530........5 58.........573.........592
NAB............215,,,,,,,,,,245.........15.5...... 243........247.........254
WBC...........237...........248........218........ 241........250.........254
Very difficult to spot any difference.Minimal if any growth.
Now should we add HBL's ???
HBL............9.............10...........11...... ....12.........13.1.........13.7.
And that is real eps growth.
EPS growth means HBL will have the capacity to continue to grow and pay increasing dividends.

Posted 29-1-2017
Still interesting.