Musings on second quarterIn his first quarter conference Gerry was uncertain about reaching their objective of 20% growth in earnings but said it was still Home's target.
2nd Q05 was 42 cents. A 20% increase would be 8 cents or 50 cents in total. This would be a substantial increase over the analyst's consensus of 45 cents. This would/should have a significant upwards impact on the share price.
My quess (which together with 10 cents used to buy you a cup of coffee) is that the continuing compression effect of rising interest rates and the negative of remaining unhedged securitization sales will hold profits at 48 cents - still well in excess of the 45 cents projections and within sight of the 20% target.