RE:The down trend may be caused by a...Its ironic that the it was the regulators and how they handled the 2 year old fraud allegations in the first place. It was an old story and they could have affected the change that they wanted without causing the panic. ie orchestrated the dismissal of the management without causing the panic. I thought Home Capital was kind of free of this fear any more because their funding model switched away from this type of deposit money. In fact they are over capitallized and are buying back shares because they have excess capital. Again, its speculators driving down the market, the company will remain profitable in the medium term. The bigger issue is will they be able to grown their loan book given the new mortgage requirements? How will some months of a declining market affect their profitability if people are not buying houses or condos in Southern Ontario?
Hopefully with the next quarterly results we will get some insight as to the future growth prospects.