HGH - Heartland Group Holdings

[Beagle]

Current market Price to Book value of 1.35 times

Reasonable ......but share price sub 140 still possible to complete that H&S chart pattern

Those head and shoulders patterns pretty reliable indicators aren't they mate. That, the whole milk powder price and the spooky correlation thereto as well as the significant correction of this sector in Australia all point to a completion of the head and shoulders to just under $1.40. Tough times to be a hgh supporter. Dividend yield should give support, (he says hopefully), in the $1.30's. Hanging in their grimly with a moderate stake at this stage.

[fish]

[QUOTE=Jay;738013]I saw it too re CBA puling out of Reverse Mtges.
Article said will only leave a few small non bank "competitors" or something like that.
Was Stuff or similar, cannot remember and cannot find the actual article I read, but here is one :

The reasons stated are rising costs and risk adverse legislation.
As far as costs go these mainly fall on the lender-in case of Heartland they dont seem to have changed and are probably very low.They currently lend on reverse mortgages at approx 7.8% compounded monthly and borrow at 1/2 that.
Profit margin seems high at what appears to be very low risk-they only lend on a very small percentage of the valuation. The mortgage is terminated if the mortgagee moves-eg into a rest home or to sell down to a smaller home .Average length of mortgage is 7 years.
seems no more risky than a standard mortgage but several times the profit margin.
Hence if Banks are moving out of this market-and I suggest we dont know the real reasons for this -it can only help heartland.
Adverse legislation can affect anything but I cannot see it take away a fundamental freedom to borrow money against a house or anything else

[percy]

Most banks have "process" set up to handle mortgages.You apply for a mortgage and it is approved or declined within a day or two.Simple.
Reverse mortgage "process" takes about a month or more.Applicant needs legal advice,full understanding of the loan,family consultation.Heartland must make sure the applicant understands what happens if they need to move into care,etc,etc..
I think the major banks have decided this "process" is too drawn out for them and possibly not their "core" [simple] business.

[winner69]

Global Dairy Trade auction prices down 3.5% overnight

Decline seen all year continues ...just like Heartlands share price

Outlook for dairy prices apparently not that bright either

Spooky eh, really spooky

[fish]

Thanks Percy.
Banks are also making so much money they dont need to risk adverse publicity if complaints arise from loss of capital when the house is sold.

[Mickey]

The buy spread on HGH looks interesting this morning - 1 at 145 and the next at 128. Possibly a bunch of people sitting on the sideline trying to time the market.

[Beagle]

Global Dairy Trade auction prices down 3.5% overnight

Decline seen all year continues ...just like Heartlands share price

Outlook for dairy prices apparently not that bright either

Spooky eh, really spooky

Really spooky...expecting hgh to come under further pressure today. The 10% gross yield rate arrives on a forecast of 9.5 cps fully imputed = 13.19 cps when the shares hit $1.32. Not saying they will go down that low in due course but stranger things have happened before and this one often overshoots on the high side ($2.14) and the low side.

[winner69]

........as well as the significant correction of this sector in Australia ......

Yes indeed, most OZ financial insto / banks multiples falling and NZ companies are following ......and HGH price/book at 1.35 is still just above sector average

Now being touted as a trans-Tasman Group so one would expect this trend to follow ....and some punters might see HGH as more ‘risky’ than when it was a ‘bank’

[percy]

Yes indeed, most OZ financial insto / banks multiples falling and NZ companies are following ......and HGH price/book at 1.35 is still just above sector average

Now being touted as a trans-Tasman Group so one would expect this trend to follow ....and some punters might see HGH as more ‘risky’ than when it was a ‘bank’

While investors will see it gives HGH greater growth opportunities.
Interesting to know the REL Australian out standing growth is continuing at the same extremely high rate.This growth will underpin HGH's positive outlook,and most probably increasing dividends.

[RTM]

I wonder how much the lack of easy information available on HGH is putting people off ?
When I look at ANZ Sec Details screen there is no dividend or yield showing.
When I try to find it in NZX I get no historical dividends or upcoming dividends.
No P/E, no eps, no NTA.
All the history has been erased with the name change.

Makes it cumbersome to find information. Especially on a scan.


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