HGH - Heartland Group Holdings

[raW tent Buffer]

Good to see these guys making a rally, finally back in the black as of this morning (my last parcel at 70c helped). Onwards and upwards?

[BlackPeter]

Good to see these guys making a rally, finally back in the black as of this morning (my last parcel at 70c helped). Onwards and upwards?

There are certainly green shoots in the TA, but on the other hand - both MA100 and MA200 still hoovering above the current SP, i.e. we are not yet out of the woods.

Based on various FA indicators it is clearly a BUY (e.g. backward 10yr PE 7.2, NTA $1.03), but sure - one can always distrust the people who generate the forecasts (and yes, their forecasts are rarely better than chimpanzees throwing darts), and one can always distrust the people running the company - ANY company, and sometimes (often?) rightly so.

Anyway, as they say - the death of HGH seemed to be severely exaggerated, and while I don't know either what tomorrow will bring, I am pretty sure that HGH will keep appreciating over the years to come.

Retirees will need additional money (REM's), Farmers will have more money to pay back their loans, and even people buying cars will eventually benefit - they need a car to drive to their new job on the farm, and the farm pays the wages (and the loan).

[Basil]

while I don't know either what tomorrow will bring, I am pretty sure that HGH will keep appreciating over the years to come.

I remember when this happened https://www.interest.co.nz/bonds/70048/heartland-bank-credit-rating-lifted-notch-bbb-sp-strengthened-business-position 11 years ago and the shares were in their mid 80's and quickly rose into the 90's as a result.  Shares have done a round trip to nowhere in the last 11 years.

Just a thought.  90 cents in May 2011 should be $1.24 in inflation adjusted terms now, (source RBNZ inflation calculator).  Just as well we know this dip is only temporary and its all up from here because we know for sure all the dirty laundry and skeletons are out of the closet, or do we?

[winner (n)]

I remember when this happened https://www.interest.co.nz/bonds/70048/heartland-bank-credit-rating-lifted-notch-bbb-sp-strengthened-business-position 11 years ago and the shares were in their mid 80's and quickly rose into the 90's as a result.  Shares have done a round trip to nowhere in the last 11 years.

Just a thought.  90 cents in May 2011 should be $1.24 in inflation adjusted terms now, (source RBNZ inflation calculator).  Just as well we know this dip is only temporary and its all up from here because we know for sure all the dirty laundry and skeletons are out of the closet, or do we?

Just confirms banks are 'cyclical' ...some more cyclical than others

Mind you WBC.AX share price today about the same as it was 11 years

[Basil]

Gosh...76 cents and we are coming up to that time of year when the auditors have to have a really good look through all of Heartland's dirty laundry.  You'd be a brave investor to think there won't be quite a few more so called "one-off" write-offs.

[LaserEyeKiwi]

Gosh...76 cents and we are coming up to that time of year when the auditors have to have a really good look through all of Heartland's dirty laundry.  You'd be a brave investor to think there won't be quite a few more so called "one-off" write-offs.

The monthly ADI reporting by APRA indicates Heartland Australia is experiencing excellent growth.

[winner (n)]

The monthly ADI reporting by APRA indicates Heartland Australia is experiencing excellent growth.

..,and heading to $200m NPAT

[Basil]

The monthly ADI reporting by APRA indicates Heartland Australia is experiencing excellent growth.

I think its widely understood that was always going to be a given and is something management have repeatedly highlighted, always accentuating the positive and trying to sweep all the problem loans here under the carpet and never once owning any of their mistakes or showing any remorse or contrition for their woeful performance..  The reverse mortgage business is the one part of the business that's good and gives a decent return on capital employed. 

[LaserEyeKiwi]

I think its widely understood that was always going to be a given and is something management have repeatedly highlighted, always accentuating the positive and trying to sweep all the problem loans here under the carpet and never once owning any of their mistakes or showing any remorse or contrition for their woeful performance..  The reverse mortgage business is the one part of the business that's good and gives a decent return on capital employed. 

I wouldn't put it quite that way, the other products are also spitting off lots of cash for the most part, they just look uglier because thats where the big impairment accounting charges were:

See page 13 of this report:

https://api.nzx.com/public/announcement/447501/attachment/438541/447501-438541.pdf

[Greekwatchdog]

So a much stronger than GDP number this morning should be good news for HGH.

https://www.nzherald.co.nz/business/...KLOZ25W33I2PQ/

Only 11 days to go before end of year with possible update during July ahread of year end result.

[BlackPeter]

So a much stronger than GDP number this morning should be good news for HGH.

https://www.nzherald.co.nz/business/...KLOZ25W33I2PQ/

Only 11 days to go before end of year with possible update during July ahread of year end result.

I suppose this was the link you intended to post?
https://www.nzherald.co.nz/business/gdp-shows-strong-growth-in-the-first-quarter-of-2025/SXIINXFDCBD7RKLOZ25W33I2PQ/
(Paywalled)

I guess good to see some growth, but not so good it likely means no further interest drops ...

[Greekwatchdog]

I suppose this was the link you intended to post?
https://www.nzherald.co.nz/business/gdp-shows-strong-growth-in-the-first-quarter-of-2025/SXIINXFDCBD7RKLOZ25W33I2PQ/
(Paywalled)

I guess good to see some growth, but not so good it likely means no further interest drops ...

Thanks BP. Worked before.

Maybe market doesn't require any more interest rate cuts for know. This could be the bottom?

I mean lets look at it, we are 10 days away from end of quarter so be interesting to see what this quarters GDP numbers look like. Sadly we need to wait another 3 months for that.

In the mean time we await news ex HGH

[Left Field]

HGH owed $8.9 million.......HGH appointed as receiver.

https://www.nbr.co.nz/business/boxman-group-companies-owe-creditors-16m/

Another ouch for HGH?

[winner (n)]

HGH owed $8.9 million.......HGH appointed as receiver.

https://www.nbr.co.nz/business/boxman-group-companies-owe-creditors-16m/

Another ouch for HGH?

No worries ....non-cash adjustment in previous reports I'd say

[LaserEyeKiwi]

HGH owed $8.9 million.......HGH appointed as receiver.

https://www.nbr.co.nz/business/boxman-group-companies-owe-creditors-16m/

Another ouch for HGH?

Anymore details from the article? Or is there a direct link to the liquidators report?

From what I can see this started as a contract dispute with A1 containers, with boxman owning significant assets around the country which should recover a lot of the money owed, but would be great to see the figures in the report.