sharetrader
  1. #11741
    Legend minimoke's Avatar
    Join Date
    Mar 2005
    Location
    Christchurch, New Zealand.
    Posts
    6,502

    Default

    From todays announcment

    "Heartland's Tier 1 capital ratio is currently approximately 13.2%. If the proposal was to be implemented in its current form, Heartland would be required to lift its Tier 1 capital ratio to 15% over a 5 year transitional period. This equates to an increase in Tier 1 capital of less than 0.4% (or approximately $15m) per year, based on Heartland's current financial position.

    Following the recent corporate reorganisation, Heartland's new corporate structure gives it some flexibility to mitigate the impact of any future changes:

    o Heartland's Australian reverse mortgage business (with approximately A$640m of assets) is not part of Heartland's banking group. Hence any new capital requirements will not apply directly to those assets.

    o Heartland's corporate structure provides for various capital raising options. For example, Heartland Group Holdings Limited could potentially raise debt, and use the proceeds to subscribe for new Tier 1 capital in Heartland Bank Limited. "

  2. #11742
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    (Assuming it was reported correctly), whoever at Maquaries said HGH would need to raise $1b in extra capital should be fired as in my opinion they have seriously undermined the credibility of their organisation.
    Last edited by Beagle; 19-12-2018 at 09:13 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  3. #11743
    always learning ... BlackPeter's Avatar
    Join Date
    Aug 2007
    Posts
    9,497

    Default

    Quote Originally Posted by Beagle View Post
    (Assuming it was reported correctly), whoever at Maquaries said HGH would need to raise $1b in extra capital should be fired as in my opinion they have seriously undermined the credibility of their organisation.
    True, but thanks to them the market was really depressed. Bought some this morning at 136 ... and think I might owe them a beer ; time will tell ...
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  4. #11744
    Guru
    Join Date
    May 2015
    Posts
    2,601

    Default

    Dam, all the panicking is over and I missed out on cheap shares... ah well
    OCA still getting cheaper so might have to look there

  5. #11745
    Legend minimoke's Avatar
    Join Date
    Mar 2005
    Location
    Christchurch, New Zealand.
    Posts
    6,502

    Default

    Quote Originally Posted by Beagle View Post
    (Assuming it was reported correctly), whoever at Maquaries said HGH would need to raise $1b in extra capital should be fired as in my opinion they have seriously undermined the credibility of their organisation.
    This is surely worth a "please explain".

  6. #11746
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by BlackPeter View Post
    True, but thanks to them the market was really depressed. Bought some this morning at 136 ... and think I might owe them a beer ; time will tell ...
    Congrats but I think the question has to be asked. Did they deliberately put out disingenuous information and then short the shares to make a quick 10% over the last two days
    Last edited by Beagle; 19-12-2018 at 09:28 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  7. #11747
    Guru
    Join Date
    May 2015
    Posts
    2,601

    Default

    Quote Originally Posted by minimoke View Post
    This is surely worth a "please explain".
    SSH from Maquaries coming??

  8. #11748
    Member
    Join Date
    Aug 2015
    Posts
    388

    Default

    Interesting that the HGH announcement was classified as '' not price sensitive''
    I would suggest that it is exactly the opposite.

  9. #11749
    Speedy Az winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    37,737

    Default

    Love this bit from Heartland’s announcement — “Heartland Group Holdings Limited could potentially raise debt, and use the proceeds to subscribe for new Tier 1 capital in Heartland Bank Limited. "

    Yep, real financial engineering to circumvent the intent of the RB is indeed possible ...questionable?
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  10. #11750
    ShareTrader Legend Beagle's Avatar
    Join Date
    Jul 2010
    Location
    Auckland
    Posts
    21,362

    Default

    Quote Originally Posted by trader_jackson View Post
    Dam, all the panicking is over and I missed out on cheap shares... ah well
    OCA still getting cheaper so might have to look there
    You know you want to switch out of your low 17% growth underlying profit company into a greyhound that's growing at triple the rate. Be quick or be disappointed

    Love the bit in Heartland's announcement where they said they can meet the new capital requirements simply through the dividend reinvestment scheme over the next five years. Talk about an easy bar to jump. Will be brutally tough for some banks though but that's their problem not HGH's !
    Last edited by Beagle; 19-12-2018 at 10:05 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •