Counsel Corporation CXSNF

RE:RE:RE:RE:RE:RE:Bank License?

[Scotch12]

Alltruth, I personally would not want to be getting into the Alt A  (riskier) mortgages at this stage of the housing cycle. Mgt of CXS has consistently been saying in the conference calls that they are only taking the very lowest risk prime mortgages.  My understanding is  that Home Capital Group has been doing  riskier higher margin mortgages for some time without a bank licence.  Some hedge funds are shorting HCG for that  very reason (again given we are late in this housing cycle). HCG have done very well to date because of the housing boom but it could turn ugly for them very quickly if rates go up.

I agree that mgt could be doing a better job selling the company's story but my experience is over time investors will reward companies with strong financials.   It was not long ago that this was a sub one  dollar stock.