HGH - Heartland Group Holdings

[Snoopy]

I am torn between HGH and GNE ...both have excellent yields at the moment ...GNE yield seems more secure to me and less dependent on economy ...which surely will be collateral damage in big Inflation fight needed .

My purpose is mainly long term income with moderate capital appreciation as bonus ...will be switching from IFT ...

HGH may have more growth prospects but my highest priority at the moment is security of yield and its long term dependability ....

Any thoughts will be most welcome and appreciated

I am in favour of stacking up one investment against another when making an investment decision. It prevents tunnel vision investment that can lead to investment disaster. However, because no-one can predict the future with all its twists and turns, it does make sense to have a diversified portfolio across different industries that are not reliant on one theme. For this reason, and knowing you have done your due diligence on both HGH and GNE, if you are happy with both, then I would invest in both. There is no need to try and pick 'the winner' here.

SNOOPY

[newbieinvestor]

I am torn between HGH and GNE ...both have excellent yields at the moment ...GNE yield seems more secure to me and less dependent on economy ...which surely will be collateral damage in big Inflation fight needed .

My purpose is mainly long term income with moderate capital appreciation as bonus ...will be switching from IFT ...

HGH may have more growth prospects but my highest priority at the moment is security of yield and its long term dependability ....

Any thoughts will be most welcome and appreciated

If I may ask why are switching from IFT ? seems to be pretty stable\secure....

[winner69]

A bit on Aussie banks and this weeks panic selling…..which HGH share price followed down

https://www.morningstar.com.au/stock...rs-note/224116

Here’s Zaia again on why puncturing an overly optimistic outlook is no issue for long term investors:

“We never assumed there would be a rosy picture forever anyway. The market is taking in that adjustment or change but is probably getting carried away by focusing on those downside risks.”

[alokdhir]

Thanks mates for your very well thought out options ...Yes I agree with Snoopy that equal mix of both GNE and HGH will cover larger spectrum ...GNE surely looking better at the moment as mentioned by ShareGuy ...but longer term both will even out ...which is my goal ...long term sustainable income .

Newbie ...I am trying to switch from IFT as looking to prefer income over growth ...otherwise nothing wrong with IFT ...I agree with u

Rawz ...best solution ...GNE for 18 months to ride out this down phase with high yield then get all eggs in HGH basket to enjoy the economy boom time

[Peter Stewart]

Falling house prices means less demand for reverse mortgages.
Increasing cost of funds could mean less margin as above 7% a reverse mortgage is becoming too dear.

Whilst the NZ business is holding with little competition, Australia is completely different. Broker business is dropping off, one new player is about 2 weeks away and another by year end

[Beagle]

Banks don't do well in a recession. US bank index down more than 20% so far this year https://www.cnbc.com/quotes/.DJUSBK which puts HGH's decline pretty much in line with the average US bank, some of whom its worth noting are already on high single digit metrics.
GNE my #1 market position, and the most defensive high yield stock I know of on the NZX.
I recently switched out some of HGH for GNE and all of my OCA for GNE and ARG.
Based on many, many years of observations HGH trade in a PE range of 9 to 18. 9 is usually a very good time to back the truck and trailer up and 18 a very good time to sell.
https://www.marketscreener.com/quote...44/financials/
Average analyst has it on a FY23 PE of 11.2 @ $1.92. 20% fall from here is a real chance in a very serious recession.
PE of 9 would put it in the low $1.50's. If it gets that low that's maybe time to back the truck up...unless we're heading into a global depression ?

[Snoopy]

Banks don't do well in a recession. US bank index down more than 20% so far this year https://www.cnbc.com/quotes/.DJUSBK which puts HGH's decline pretty much in line with the average US bank, some of whom its worth noting are already on high single digit metrics.

Q/ When do you call a finance company in drag a bank?
A/ When its name is Heartland.

I don't buy these 'peer group' arguments. We should all be grateful that Heartland is a bank in marketing spiel only. We all know Heartland bank accounts are actually Westpac bank accounts with a Heartland marketing sticker on the top of the page. Even that is pushing things. The parent company we can invest in, is called 'Heartland Group Holdings'. But that company doesn't have a banking licence. Only its subsidiary does, and that is for 'marketing reasons'.

SNOOPY

[winner69]

Q/ When do you call a finance company in drag a bank?
A/ When its name is Heartland.

I don't buy these 'peer group' arguments. We should all be grateful that Heartland is a bank in marketing spiel only. We all know Heartland bank accounts are actually Westpac bank accounts with a Heartland marketing sticker on the top of the page. Even that is pushing things. The parent company we can invest in, is called 'Heartland Group Holdings'. But that company doesn't have a banking licence. Only its subsidiary does, and that is for 'marketing reasons'.

SNOOPY

I think most think of Heartland being a finance company .... and not a bank

Even Jeff calls it a fintech

But its uncanny how the rises and the falls in the HGH share price seems to follow aussie banks .... and how they are valued much in line with those banks and not in line with finance / fintech companies

[winner69]

Crickey - I see HGH closed 20% down at A$1.54 on Friday

Thats about $1.70 odd in NZD

Carnage tomorrow morning?

[Baa_Baa]

Crickey - I see HGH closed 20% down at A$1.54 on Friday

Thats about $1.70 odd in NZD

Carnage tomorrow morning?

Not sure what you're looking at winner:

HGH

$1.715

22.5 11.6%

ASX https://www2.asx.com.au/markets/company/hgh $1.715 -$0.224 (-11.597%)