HGH - Heartland Group Holdings

[percy]

esp if they didn't pay such high divies

If they reinvested divies and consistently made 12% ROE todays shareholder equity of $529m would be $5.1 billion in 20 years time ..... with a market cap of say over $8.0 billion ....share price $16 ....and a big bank

Maintain current dividend payout ratios and shareholder equity increases to only $1.1 billion in 20 years time ..... maybe shareprice $2.50

Just mathematics - nothing clever in that - and miles away from reality eh

Yes miles away.
If you are happy not receiving ongoing growing dividends,then HBL is not for you.
Maybe Berkshire Hathaway would suit better.

[winner69]

Another of your Bowling Club "investors".?

I mentioned to him that it's better to own the bank than to deposit money in it ......so they are now beginning to 'invest' in Heartland

[winner69]

Maybe we should get Snoops to do one his famous Buffett type tables as to see what generates greater return for shareholders over the years assuming a consistent ROE but with different payout ratios.

[percy]

Maybe we should get Snoops to do one his famous Buffett type tables as to see what generates greater return for shareholders over the years assuming a consistent ROE but with different payout ratios.

Think you are best to send him a PM .!!!!.....lol.
In reality investors must decide where to allocate their capital.
We have companies such as HBL and RYM.Both have ROE of over 10% and yet have very different dividend payout ratios.
Each company retains a certain % of profit to reinvest in their business.
It is very doubtful that investors could earn more than those companies', over 10%,so investors would be better to take no dividends from either company.
Yet the directors of both companies realise that in NZ ,very few investors would invest in them should they pay no dividend,
Over the past few years were have seen the market gravitate to high yielding stocks,to the point we have seen some posters on sharetrader, compare HBL with the Australian banks, solely on yield.I would think the directors of HBL are fully aware of this,and decide of dividend payout ratios taking that in mind,as well as their desire to grow the business.

[Beagle]

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

Good arbitrage and I think a few people followed suit which would explain a little of the SP softness lately. Others just dipped into our petty cash fund for the 15K

[percy]

Softness????????????????
I have been surprised by the share price strength.!!!!!!!!!!!!

[Beagle]

Got down to $1.56 in the last few days at one point I think Percy. Strength is relative...has been hovering around $1.50 for many, many months so the recent spurt up to $1.60 was probably overdue.
$1.59-$1.60 feels about right to me...for now Onward and upward... $1.80 by Christmas !

[percy]

Got down to $1.56 in the last few days at one point I think Percy. Strength is relative...has been hovering around $1.50 for many, many months so the recent spurt up to $1.60 was probably overdue.
$1.59-$1.60 feels about right to me...for now Onward and upward... $1.80 by Christmas !

Please wake me when the share price hits $2.00..........................lol.

[Jim]

Just filled in the maximum shares of 15k application

[Xerof]

Just filled in the maximum shares of 15k application

Too late, closed Friday
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joking

percy, have you asked how much SPP money is sitting in the holding account? - if it's >100m, I'll scream, we'll scream, we all like ice cream