Today's press releaseI think if you read today's press release, Xceed's end game is very clear. They want to get back into non-insured non-traditional mortgages, where the rates and the profit is very lucrative. Xceed Bank will be carving an interesting niche for itself.
Ultimately, this will lead to significantly higher value for the stock. In the short run, a small pop on the conversion to a bank, however, assuming they can execute quickly and move back into sub-prime mortgages, a significantly higher price will follow.
Separately, a few other competitors, the largest of which was Wells Fargo Canada, has decided to abandon the Canadian mortgage market. Go to
www.canadianmortgagetrends.com if your interested in industry news.