HGH - Heartland Group Holdings

**Leftfield** · 29-08-2016, 02:00 PM

Interest.co.nz reporting today......

The Commerce Commission has filed civil proceedings in the Auckland High Court asking the Court questions about how the Credit Contract and Consumer Finance Act 2003 (CCCFA) applies to consumer loans entered into with peer-to-peer lender Harmoney Limited.
Harmoney says it's "disappointed' with the commission's action.
The loss-making Harmoney is already facing a six-figure fine in a separate Fair Trading case brought earlier by the commission, and to which it has pleaded guilty.

**percy** · 29-08-2016, 02:29 PM

Originally Posted by Left field

Interest.co.nz reporting today......

The Commerce Commission has filed civil proceedings in the Auckland High Court asking the Court questions about how the Credit Contract and Consumer Finance Act 2003 (CCCFA) applies to consumer loans entered into with peer-to-peer lender Harmoney Limited.
Harmoney says it's "disappointed' with the commission's action.
The loss-making Harmoney is already facing a six-figure fine in a separate Fair Trading case brought earlier by the commission, and to which it has pleaded guilty.

These proceedings will most probably affect the value of HBL's 10% holding in Harmoney.
[although I doubt it will be material].
What it will not affect is the very profitable lending Heartland Bank is conducting through Harmoney channels.

**Leftfield** · 29-08-2016, 03:27 PM

Originally Posted by percy

These proceedings will most probably affect the value of HBL's 10% holding in Harmoney.
[although I doubt it will be material].
What it will not affect is the very profitable lending Heartland Bank is conducting through Harmoney channels.

Agree that the effect on HBL is mitigated by them only having 10% of Harmony. However, it is in HBL's interests to have this resolved ASAP for the peer to peer lending investment to flourish.

In the meantime Harmony's losses likely to increase (and margins eroded)?

**percy** · 29-08-2016, 03:52 PM

Originally Posted by Left field

Agree that the effect on HBL is mitigated by them only having 10% of Harmony. However, it is in HBL's interests to have this resolved ASAP for the peer to peer lending investment to flourish.

In the meantime Harmony's losses likely to increase (and margins eroded)?

We are seeing regulators in UK,Aussie and here clarifying lending rules,in particular pay day lending.
Vehicle/equipment lenders learnt a lot with the MTF/Sportzone Commerce commission case, and I expect online/peer to peer lenders will learn what is acceptable with CC and Harmoney resolution.
It is in every bodies interest to have fair regulations.

**tim23** · 29-08-2016, 07:44 PM

Anyone have a brokers valuation post result? Thanks

**percy** · 30-08-2016, 07:59 AM

Originally Posted by tim23

Anyone have a brokers valuation post result? Thanks

In their research report dated 16th august 2016 ,Craigs rated HBL as a buy with a target price of $1.56.

**tim23** · 30-08-2016, 06:31 PM

Thanks Percy

**trader_jackson** · 30-08-2016, 09:02 PM

Not that I would recommend listening to brokers, but as you asked: Forsyth latest rating (released 17 August this year) was Neutral with a target price of $1.50.
They note the uncertainty regarding HBL's very strong capital position... and so can't take this most likely marvelous opportunity (whether that be a UDC acquisition, or a tremendous capital return) into account in their rating.

I also note on 4-traders, the consensus average is $1.51 (with 1.46 as the low and Craigs $1.56 as the high: out of 3 surveyed: http://www.4-traders.com/HEARTLAND-B...518/consensus/)

Although, word on the street is still $1.60 by Christmas