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  1. #11511
    Outside thinking.
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    Here's a link to the latest release to an Asian Investors conference from Heartland FYI

    http://nzx-prod-s7fsd7f98s.s3-websit...496/288836.pdf

    Disc; Have taken an small holding in recent lows.

  2. #11512
    percy
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    Quote Originally Posted by Left field View Post
    Here's a link to the latest release to an Asian Investors conference from Heartland FYI

    http://nzx-prod-s7fsd7f98s.s3-websit...496/288836.pdf

    Disc; Have taken an small holding in recent lows.
    Thank you for the link.
    Another excellent presentation.

  3. #11513
    Speedy Az winner69's Avatar
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    Quote Originally Posted by Beagle View Post
    LOL thanks Peat, such a memorable pendant...looks like something KW would wear Yes mate as you suggest things do overshoot in both directions but I suspect if it does get down to $1.40 there will be plenty of other things to worry about as well so that's not something I want to see.

    Chart looking uglier as the weeks go by (even the pendant is losing its shine)


    I dont believe in H&S charts but this one looks pretty convincing. No $1.40 will never be reached ...will it?


    Or maybe Heartland just been grouped in with all those dodgy Aussie banks and finance companies which are seen as rogues and vagabonds and not wanted. Even that great company FXL shareprice is collapsing to the chagrin of t_j). Not saying Heartland is dodgy.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  4. #11514
    ShareTrader Legend Beagle's Avatar
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    I blame Herdlicker…for everything lol.
    The whole market was fine until she set a (new low) wild west tone to it.
    Now the whole market is just plain UGLY.
    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

  5. #11515
    Speedy Az winner69's Avatar
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    Quote Originally Posted by Beagle View Post
    I blame Herdlicker…for everything lol.
    The whole market was fine until she set a (new low) wild west tone to it.
    Its Hrdlicka by the way ....show some respect please

    No doubt Jayne gets to chat with Heartland Directors Vanessa and Ellie quite often in their pursuit of more diversity in business.


    Would be good if Jeff told Geoffrey to headhunt Jayne for the Heartland board

    Small world eh
    Last edited by winner69; 19-10-2018 at 03:09 PM.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  6. #11516
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    I sold about 30% of my (relatively small) holding on Tuesday, but thought I would hold onto the rest to see what happened.

    Now seriously considering dumping those as well! I'm still in the green - just - but I think I could find somewhere better for that money to sit.

  7. #11517
    On the doghouse
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    Default BC1/ Tier 1 and Tier 2 Lending Ratios FY2018

    Quote Originally Posted by Snoopy View Post
    In April 2017, Heartland had a subordinated capital note issue of $A20m. Approximately 72% of the face value of the Notes will be recognised as Tier 2 Capital by our banking regulators. So we must add the 'Tier 1 capital' (being shareholder equity) to 72% of the 'Tier 2 capital' to obtain the total recognised 'tier' capital for liquidity purposes

    Total Heartland Equity at balance date was $569.595m , PLUS
    Tier 2 capital as apportioned $14.975m EQUALS
    Total Tier Capital $584.570m

    Total Heartland liabilities at balance date were $3,465.076m

    So: Equity / Total Liabilities
    = $584.570m / $3,465.076m = 16.9% < 17% (*)

    Result: PASS TEST

    I have been a little generous in 'passing' Heartland here, because I am not convinced that using 'only' 72% of the Tier 2 capital is justified (if 100% of Tier 2 capital was used the 17% pass figure would be achieved). I have also included 'intangible assets' as equity. This is because a financial institution is 'punished' for spending on having up to date computer software (software is an intangible asset), when I see up to date software as a really good idea in keeping track of troublesome loans. Nevertheless, whether you agree with my reasoning or not, no one can dispute that Heartland was in a better loan security position at EOFY2017, than at the end of the previous two financial years.

    {Note that I have changed my equity target for Heartland to the 17% equity (down from my 20% target) that Heartland had when Governor Wheeler originally approved Heartland as a bank. I had previously used 20% as the figure appropriate for a more marginal finance company without a strong history.}

    The historical picture of this ratio is tabulated below.

    FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Target
    Total Tier Capital/ Loan Book 19.3% 17.7% 17.6% 16.6% 16.4% 16.9% >17%
    This is an assessment of Heartland's total liabilities/borrowings (including the accumulated funds looked after for Mum and Dad's known as term deposits) in relation to Heartland's own underlying assets.

    In April 2017, Heartland had a subordinated capital note issue of $A20m. Approximately 72% of the face value of the Notes will be recognised as Tier 2 Capital by our banking regulators. So we must add the 'Tier 1 capital' (being shareholder equity) to 72% of the 'Tier 2 capital' to obtain the total recognised 'tier' capital for liquidity purposes

    Total Heartland Equity at balance date was $664.160m , PLUS
    Tier 2 capital as apportioned (NZD1 = AUD0.9138) $15.758m EQUALS
    Total Tier Capital $679.918m

    Total Heartland liabilities at balance date were $3,831.766m

    So: Equity / Total Liabilities
    = $679.918m / $3,831.766m = 17.7% > 17%

    Result: PASS TEST

    I have been a little generous compared to what the reserve bank might do, in including 'intangible assets' as 'underlying equity'. The Reserve bank effectively punishes a financial institution for spending on having up to date computer software (software is an intangible asset). Yet I see up to date software as a really good idea in keeping track of troublesome loans. Nevertheless, whether you agree with my reasoning or not, no one can dispute that Heartland was in a better loan security position at EOFY2018, than at the end of the previous three financial years.

    {Note that I have changed my equity target for Heartland to the 17% equity (down from my 20% target) that Heartland had when former Reserve Bank Governor Wheeler originally approved Heartland as a bank. I had previously used 20% as the figure appropriate for a more marginal finance company without a strong history.}

    The historical picture of this ratio is tabulated below.

    FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Target
    Total Tier Capital/ Loan Book 19.3% 17.7% 17.6% 16.6% 16.4% 16.9% 17.7% >17%

    SNOOPY
    Last edited by Snoopy; 19-10-2018 at 03:55 PM.
    Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7

  8. #11518
    percy
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    Heartland have received the final court orders for their restructure.
    All going as expected.
    No surprises there.
    New code on 1st Nov will be HGH.
    Last edited by percy; 19-10-2018 at 05:03 PM. Reason: New code

  9. #11519
    IMO
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    Cool thanks percy and snoopy, happy holder here. cheers with the sun shining a Gin and tangelo juice in my hand.
    Last edited by Joshuatree; 19-10-2018 at 05:01 PM.

  10. #11520
    Senior Member
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    Snoopy, under the restructure I think the aussie notes are paid back.....what this means I'm not sure...read it in the restructure booklet I think

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