HGH - Heartland Group Holdings

[K1W1G0LD]

Good to know that Mrs. K1W1GOLD has now a safe kitchen sink..

Think it maybe a while before any decent upward movent is seen .. Every one has already positioned themselves..

Hahaha, it was always safe.Now she can have a new one and soon a new kitchen as well

[SCOTTY]

The Banking Licence is a big milestone and excellant news for Christmas.

There was an interesting item on Sharechat dated 13th Dec. - "ANZ Bank's UDC Finance unit lifts FY profit by 31% on lending growth."

What I found particularly interesting was that the profit of $37.9 million was achieved on a lending book of over $2 billion. I assume that this is just over the $2b as the article said "UDC's lending book rose 3.5% to over $2 billion"
This is pretty similar to HEARTLAND BANK which has Net Finance Receivables of $2.078 billion.

Surely "THE BANK" should soon be producing a similar result which would make for juicy earnings of 9.75cps ($37.9m divided by the 388,703,975 shares on issue). Currently, HEARTLAND BANK has total assets of $2.65 billion, which would suggest that it has the capacity to substancially improve on this result.

These are my thoughts and I could be quite wrong (but I hope not).

[percy]

The Banking Licence is a big milestone and excellant news for Christmas.

There was an interesting item on Sharechat dated 13th Dec. - "ANZ Bank's UDC Finance unit lifts FY profit by 31% on lending growth."

What I found particularly interesting was that the profit of $37.9 million was achieved on a lending book of over $2 billion. I assume that this is just over the $2b as the article said "UDC's lending book rose 3.5% to over $2 billion"
This is pretty similar to HEARTLAND BANK which has Net Finance Receivables of $2.078 billion.

Surely "THE BANK" should soon be producing a similar result which would make for juicy earnings of 9.75cps ($37.9m divided by the 388,703,975 shares on issue). Currently, HEARTLAND BANK has total assets of $2.65 billion, which would suggest that it has the capacity to substancially improve on this result.

These are my thoughts and I could be quite wrong (but I hope not).

Thanks for the link SCOTTY.
I don't think you are wrong,in fact I would say you are right on the money.HNZ and UDC should track markets together,and I look forward to HNZ also posting a $37.9mil profit.

[Snoopy]

The Banking Licence is a big milestone and excellent news for Christmas.

IMO the HNZ banking licence is a stake in the ground and good news for Christmas. It isn't a hyperbole event. And it doesn't address any of the underlying issues of running a small finance institution.

There was an interesting item on Sharechat dated 13th Dec. - "ANZ Bank's UDC Finance unit lifts FY profit by 31% on lending growth."

What I found particularly interesting was that the profit of $37.9 million was achieved on a lending book of over $2 billion. I assume that this is just over the $2b as the article said "UDC's lending book rose 3.5% to over $2 billion"
This is pretty similar to HEARTLAND BANK which has Net Finance Receivables of $2.078 billion.

Surely "THE BANK" should soon be producing a similar result which would make for juicy earnings of 9.75cps ($37.9m divided by the 388,703,975 shares on issue). Currently, HEARTLAND BANK has total assets of $2.65 billion, which would suggest that it has the capacity to substantially improve on this result.

How much does UDC lend on farms and to households? Also UDC is a wholly owned subsidiary of the ANZ bank with a credit rating of AA-. The credit rating of Heartland is still BBB-. In short I don't think you should expect Heartland 'whatever' to outperform UDC.

What has happened today is akin to going out and screwing a 'GT' badge on your car. It won't make your car go any faster. Maybe it might impress some granny peering over your back fence. But she won't be vying to get into your passenger seat. All her dough is done already thanks to the finance sector collapse at the 'Brokenheartland Money Club'.

SNOOPY

[percy]

Breaking News! Heartland have just rebranded my local CBS Canterbury store in Riccarton as 'Heartland'. This is very clever timing. The work is done in June and Heartland gets the bill in July. But Heartland's balance date is 30th June. That means Heartland can shunt their transformation costs into the following financial year!

One more observation. The new branding is 'Heartland' not 'Heartland bank'. That means we can rule out Heartland becoming a bank in the next year. If a banking licence decision was near Heartland would have delayed their rebranding IMO.

SNOOPY

Licence granted today.

[percy]

Here are the latest basel 3 requirements outlining hoops that must be jumped through for all new banks.

http://www.rbnz.govt.nz/finstab/bank...on/3564868.pdf

I draw your attention to Clause 10(c) amongst the information the Reserve Bank need to have on record.

----
10(c) Financial accounts for the parent company or bank for the last 3 years.
----

Since Heartland have only existed since the second half of last year, I think this means we can rule out registration of HNZ as a bank for about three years.

SNOOPY

Banking licence granted today.

[percy]

[

What has happened today is akin to going out and screwing a 'GT' badge on your car. It won't make your car go any faster. Maybe it might impress some granny peering over your back fence. But she won't be vying to get into your passenger seat. All her dough is done already thanks to the finance sector collapse at the 'Brokenheartland Money Club'.

SNOOPY[/QUOTE]

No old ANZ Cortina with a GT badge.Latest model bank tourer with all the bells and whistles.NZ owned bank serving NZ "Heartland".A true throughbred.In fact a good replacement for that National bank one ANZ sent to the pet food factory.

[Balance]

[

What has happened today is akin to going out and screwing a 'GT' badge on your car. It won't make your car go any faster. Maybe it might impress some granny peering over your back fence. But she won't be vying to get into your passenger seat. All her dough is done already thanks to the finance sector collapse at the 'Brokenheartland Money Club'.

SNOOPY

No old ANZ Cortina with a GT badge.Latest model bank tourer with all the bells and whistles.NZ owned bank serving NZ "Heartland".A true throughbred.In fact a good replacement for that National bank one ANZ sent to the pet food factory.[/QUOTE]

Ole Snoopy's string and plywood bi-plane crashed today but thank goodness, he seems ok judging by his mutterings!

[percy]

[

Ole Snoopy's string and plywood bi-plane crashed today but thank goodness, he seems ok judging by his mutterings![/QUOTE]

Heartily agree.!!!!! lol

[Balance]

Onwards and upwards.

Don't be too hard on Snoopy, though his negativity towards a stock like Heartland is eerily similar to that of PGW, I found his criticisms useful as they provoked my hypothesis on PGW with ideas I hadn't considered. I hope it did the same for Heartland investors.

We should all be pleased to have contrarian views at Sharetrader - it makes us stronger when we think about investment from bear views and with a dose of healthy skepticism.

The comments that deserve the most criticism are not the ones that say "this stock is damaged because of XYZ", but those who try to talk up a stock for their own benefit. I've poured scorn on a few others who've done this at the Smartpay thread. I've been a bit rude and unkind to long suffering BLIS investors too who seem far too optimistic.

Back to Heartland. I am surprised that the stock didn't hurtle past 70c with gusto, but on reflection it is still early days - they're not a bank yet, merely able to pursue a retail banking strategy.

Agree whole heartedly, STC.

Sharetrader will not be sharetrader without posters like Snoopy who provides critical balance and analysis. Meant sincerely, Snoopy - keep challenging as most tend to be rather myopic when it comes to their favorite stock.

Christmas is approaching so Snoopy will need to get his plane up and flying again to guard us against the red baron?