FP says Home Capital Group humbled by a single farmer
2017-05-01 09:34 ET - In the News
The Financial Post reports in its Saturday edition that the stock market is too weird to explain. The Post's guest columnist Peter Hodson writes that with 40 years-plus now of investing experience, he is still shaking his head at what is happening at some companies. Home Capital Group went through the 2008/09 financial crisis just fine. In fact, during those years it increased its earnings per share and also increased its dividend. Last week, though, none of that mattered, nor did its 10-year-plus history of strong performance, as it experienced a good old fashioned run on its banking subsidiaries, which resulted in it needing to find some very expensive financing to replace fleeing deposits. Sure, Mr. Hodson says, executives of the company made some serious judgment errors, and there is an Ontario Securities Commission investigation continuing, but recent problems for the company all seem to have started with a short attack by Mark Cohodes -- a chicken farmer. So Home Capital survives Lehman Brothers and a worldwide financial collapse, only to be humbled and hobbled by a single farmer. On April 24 Baskin Wealth Management president David Baskin said Home Capital was "unduly cheap." It was then worth $19.25.