point by point staus of HCG IMO1. Quarter results by themsellf are very solid
2. This sums up in a few words where HCG stands as per the companies Management discussion (Management has in a very short period of time developed cash flow projections, forecasts and action plans, which will continued to be updated and refined based on the latest available information. If successfully implemented, a combination of some of these actions will enable the Company to continue as a going concern. However, the success of a number of assumptions and management actions such as new deposits origination will depend on factors that may be outside of management’s control. In addition, potential future impact resulting from reputational concerns is inherently difficult to predict. Therefore management believes that material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.)
3. One huge concern to me are the class action lawsuits and the potential for them to drag this company down. These could take years to settle and will be a constant reminder of HCG problems going forward.
4. GIC's in all likelyhood will to a high degree not be renewed as they come due.
5. Naming a high profile CEO to instill confidence in this company is urgently needed.
6. I am impressed with Management actions to date at trying to salvage this company.
7. I believe by far the best strategy for HCG is to be taken over ASAP before the GIC non renewals start flooding in over the next year. My biggest concern here of course is finding a credible buyer and finding a credible buyer willing to deal with the vultures (class action lawsuits).
8. IMO HCG reputation (no matter how unfairly) has been tarnished to the point that no matter what is done people will be to reluctant to renew GIC`s with HCG and therefore will ultimately bring the company down. A rapid takeover IMO will preserve the maximum value for shareholders.
Would like comments from others Thanks