HGH - Heartland Group Holdings

[Playa]

who is taking up the special term deposit rates recently offered by Heartland

[Basil]

The 6 month term deposit shareholders special at 4.00% is 400 bps higher than the carded rate and is definitely market leading and a special offer.

I think they are "taking the proverbial" saying the 12 month deal at 4.30% is a special deal for shareholders only as all that does is align them with the 12 month deal on offer with SBS Bank (same credit rating) that any member of the public can get.

In answer to your question, I'm not presently in the market to put anything significant on term deposit.

[winner (n)]

Mr Kensington from KPMG says banks have done very well lately but a bit glum about the future ...he says "Unless inflation gets under control, and unless interest rates come down, I think we're going to have a very difficult quarter to the end of the year, and we'll have a very difficult first quarter (of 2023),"

From KPMG's latest report on NZ banks

https://assets.kpmg/content/dam/kpmg/nz/pdf/2022/09/fips-june-2022-quarterly.pdf

[Ferg]

Thanks winner.  I see the $1.80 price has been tested.  Buyers appear to be thin on the ground today, although it could be market-wide malaise rather than anything specific to HGH.  Now it is below the recent issue price of $1.80 it has triggered a watch for me.  What does the TA say?

[Left Field]

Thanks winner.  I see the $1.80 price has been tested.  ...  Now it is below the recent issue price of $1.80 it has triggered a watch for me.  What does the TA say?

IMHO TA is not favourable for HGH, it's currently in (100/200 day MA) 'Death Cross' territory and may well consolidate in the $1.70's while any adverse noise could see it sink to $1.50.

GLH.

[lorraina]

The market is seeing something ,neither I nor Craigs,Forbar,Jardens , Hobson Wealth, directors/management,have missed.?

[Basil]

https://www.bignewsnetwork.com/news/272784137/us-fed-again-raises-key-interest-rates-in-fight-against-inflation

Lots of experts on CNBC think Powell is going to seriously oversteer the ship and send the US into a deep and prolonged recession.  How this affects the rest of the world economies and what happens next with Putin in Ukraine are I believe two of the biggest blocks in the current wall of worry for the markets in general and how the risk of a possible deep and lasting recession affects financials' and loan loss provisioning in particular is the specific worry for banks.

[Left Field]

Crikey, down to $1.75 today with 'sell side' depth vastly outnumbering buyers.

Maybe the market sees some truth in the claim by a Jarden analyst Grant Lowe re the need of a further cap rise if HGH is to purchase Avenue Bank??

GLH.

[Ferg]

An interesting commentary here:
https://www.sharetrader.co.nz/showthread.php?8425-HGH-Heartland-Group-Holdings&p=976194&viewfull=1#post976194

[Basil]

Disappointing to see it close below the capital raise price but in the context of the market in general being in a funk it's probably no great surprise.
I think the next couple of months could be quite challenging for the market.  Federal Reserve seems hell bent on crushing inflation irrespective of how it affects the markets, the economy or anything else.  Global recession coming ?

[winner (n)]

Been a busy month for Heartland

Got the begging bowl out and collected $199m in cash ... after Jarden and other 'organisers' take their cut let's say they got $190m

Gave $32m back to shareholders by way of divie

Gave $150m back to bondholders when HBL010 matured the other day

So $8m left of the $190m ... boost the petty cash ......or maybe put aside for the next round of exec bonuses lol

End result one could say the Heartland Balance Sheet is now 'healthier'

The wonders of high finance and 'money go rounds'

I sense another Bond issue coming up - probably be a Green Bond to give everybody the warm fuzzies - and priced to make it attractive for the likes of Basil

[lorraina]

Well after all said and done money is their business.
They know it well.

[Basil]

I reckon the issuance of so called green bonds is nothing but "Greenwashing"
Agree that after repayment of the bonds that they were so quiet about you could hear crickets they will be looking to do a bond issue but have probably been holding off with interest rates where they are.
Westpac had to pay 6.19% the other day for a debt issue and long bonds have moved north since then...Hmmm...I also can see them tapping the market again but if they're holding off for lower interest rates, good luck with that strategy !

[snapiti]

interesting times mr beagle, big squeeze on bank margins as they try to dig themselves out of the property bubble they helped create.
My woodland friend reminds me don't fight the FED and central governments have signaled the tightening process will continue until inflation is under control and this requires unemployment to rise........scary balance to get right and central bankers don't have a good history of getting things right
The equation is quite simple......assets prices ballooned on the back of cheap money......now money is getting more expensive a very meaningful correction is under way
Sitting back relaxing with plenty of cash best position to be in right now 

[Auto Rower]

After yesterdays day of blood letting down to $1.70 !! hopefully Heartland & the rest should get some respite from Bear attack's today.
Or is this another example of a capital raise gone wrong ,not the best of times to buy a bank and maybe  the worst of times .
At least it cannot go much lower for sure