HGH - Heartland Group Holdings

[percy]

The important thing Percy ......what was Jeffs body language like?

Did he do a Sodi at the Diligent meeting? Did he keep looking up and to the left?

How engaged were the rest of the board when the speeches were being made?

More important than the words this

Cheers mate

All very positive.
All fully engaged.
The board were very keen to talk with shareholders after the meeting.
I get the feeling the board seem to have a "sense of pride" to be part of creating a very successful NZ bank.

[percy]

Thanks Percy for taking the time to summarise your reading of the AGM for us. It is very much appreciated by this happy holder !

Iceman.
You/we have invested in a well run,financially strong,growing company.This company has a part to play in financing wealth creation for New Zealanders.It has a growing capacity to pay good increasing dividends.The foundations have been laid,and the future looks bright,and secure.Hold with the knowledge you/we will be well rewarded.

[nextbigthing]

Reading this thread, many seemingly reputable members of this forum seem bullish on the stock and are often commenting on how undervalued it is, that it should be at least $1. Yet this stock has a reasonable profile, surely it can't be simply 'overlooked', institutions have full timers looking for opportunities like that. So what's holding it back? Why is Mr Market holding it around 0.86 and not driving it to $1.

Please note; previous applicants need not apply... (Snoopy )

[percy]

Ebos,Ryman and a number of companies took years to be recognised by the market.Ebos still flies under the radar [as pointed out by their MD at their agm],so Heartland is no different. I think we are seeing intos adding,or coming onboard.
I asked MD Jeff Greenslade if he knew where the PGW holding went to.He said he thought intos [.....] and [ .....] had brought them,but as they are held by Central depository he was not sure.
Have not named the intos as I think it would be unfair to quote Greenslade when he was unsure.
It can take a long time for a company to be covered or added to a broking company's research or buy list.
Maybe when all the brokers' start recommending Heartland as a buy, it will be time for us to sell.I expect this will happen when HNZ share price hits $3.50.Don't know when that will be.!!!!!!!!!! lol.

[CJ]

ASM report http://www.stuff.co.nz/business/indu...t-acquisitions

That Kevin Arscot quoted seemed rather pissed off with progress ......obviously thinks hnz should be more aggressive and use that 15% equity ratio better .....in other words take more risk?

Seems he shouldn't be a hnz sharehold .....he just get the story does he

They said their looking for acquisitions so doesn't that fill his criteria. The fact they aren't rushing should be a positive

Maybe snoopy is right - they should do a capital raising. Different reason though, it would put them into the NZX50 so they would get coverage, propelling their SP upward.

[iceman]

Iceman.
You/we have invested in a well run,financially strong,growing company.This company has a part to play in financing wealth creation for New Zealanders.It has a growing capacity to pay good increasing dividends.The foundations have been laid,and the future looks bright,and secure.Hold with the knowledge you/we will be well rewarded.

I bought the greatest part of my HNZ shares at the end of September 2011 and have been slowly accumulating more along the way right up until last week Percy so I am very satisfied with the performance. When I first bough in I bought into a story and goals that I liked, well aware of the potential risks. Since then the Company has steadily achieved the goals they set themselves and nothing really surprising has come out. That I like very much. In addition to the great capital gain, we now have steady dividends of around 7% at current SP as you point out and more like 10% on my average buy price. That's not to be sneezed at and these may also well increase in the future as more of the management's goals are achieved.
I shall continue to accumulate a few more along the way as/if finances allow !

[percy]

They said their looking for acquisitions so doesn't that fill his criteria. The fact they aren't rushing should be a positive

Maybe snoopy is right - they should do a capital raising. Different reason though, it would put them into the NZX50 so they would get coverage, propelling their SP upward.

It has been rumoured that they will take over Motor Trade Finance.They could do that without coming back to shareholders.
Old rumour was FPF [Fisher & Paykel Finance].I believe Chinese are more than happy.However, should that come about they would need to come back to shareholders.It would,subject to terms be very positive for Heartland.
In the meantime they have too much capital.It was pointed out that that they have provision to do a share buy back.
With merging three companies to form HNZ and the takeover of PGW Finance they are very comfortable about doing acqusitions.
I feel they are holding back on share buy back,so they have the capacity to do an acquisition/acqusitions.
A capital rising without reason would not be supported.So again Snoopy is wrong.

[winner69]

My P/E for the company was 10-15, but with that sort of earnings growth... 15-20 maybe in order? I doubt they can sustain it, else I would say P/E of 30!

Time to top up if it stays this low me thinks...

PE ratios of the Banks sector on the ASX (from AFR) below

Somebody earlier mentioned Bendigo as a benchmark as opposed to the Big $4

Bendigo at 12.7 ... discount a bit for NZX conservatism (like we have lower PEs generally) so for HNZ 10-12 fair?

[goldfish]

Yes, I think we see that often in companies.A lot of shareholders expect huge returns

I am guilty of that, I am trying to curb my instinct, its not easy sometimes.
Thanks to everyone on here for all the great knowledge and wisdom.

[percy]

PE ratios of the Banks sector on the ASX (from AFR) below

Somebody earlier mentioned Bendigo as a benchmark as opposed to the Big $4

Bendigo at 12.7 ... discount a bit for NZX conservatism (like we have lower PEs generally) so for HNZ 10-12 fair?

Thanks winner69 for posting that.
HNZ's dividend is imputed.
Buying Aussie bank stocks we miss out on that.Makes a big difference to me.
Maybe I would go for a higher PE considering that HNZ has greater potential for higher growth.