Excellent news on new IFRS rulesFrom the Q1 earnings report:
The preliminary analysis suggests that if the income statement for Home Capital’s first
quarter of 2010 was presented on an IFRS basis, net income and earnings per share would not be materially impacted.
This is great news. Several analysts were predicting that EPS might take a large hit next year due to the new rules (a few of the reports were posted on this thread last year).
The CC indicated that things are looking good for Q2, visa cards going strong, arrears coming down. Securitization gains likely to be flat this year despite much higher volumes due to lower margins but Gerry thinks margins are unlikely to drop further.
Looks to me like 5.00 EPS is makeable this year which would put the PE at 8.5 at Fridays close of 42.36. I just can't see a better place to stash your cash, at least for long term oriented investors. Short term, who knows where the panic takes us.
Martin Reid seemed a little dull in his BNN appearance. The questions were mostly useless as well.