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Home Capital Group Inc T.HCG

Home Capital Group Inc. is a Canada-based holding company that operates through its principal subsidiary, Home Trust Company (Home Trust). Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust and its wholly owned subsidiary, Home Bank offer deposits through brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Its mortgage lending includes classic single-family residential lending, insured residential lending, residential commercial lending, and non-residential commercial lending. Its consumer lending loan portfolio comprises credit cards, lines of credit and other consumer retail loans. In addition, the Company manages a treasury portfolio to support liquidity requirements and invest excess capital.


TSX:HCG - Post by User

Bullboard Posts
Comment by Djwburron May 04, 2017 9:11am
66 Views
Post# 26202092

RE:CONVERSATION WITH MY BROKER KINGS STREET TORONTO

RE:CONVERSATION WITH MY BROKER KINGS STREET TORONTODid you just say mortgage portfolio dollar for dollar? Sorry, that is not how an asset sale will work. Common Shareholders will get zilch out of this deal. Main executives have been packaged out just in time for the crash. 

It's pathetic that in Canada investors are not privy to important details such as severance packages and the details of the HOOPP loan (fine print). The longs here are left in the dark and left hoping. 

Not even TAM has a public official disclosure document (at least I haven't seen one) that officially announces their long position here. It's all hot air.

I expect this to be halted soon

sanspeine wrote: The latest update, some of which will be new.

The new BOD members contain some real turnaround crackerjacks.
They will be announced very soon.

They will be given one month to show that  deposit  confidence can be restored.
If so, banks have been lined up to replace the short term Hoopp loan on terms consistent with those of equitable.
Expected cost of termination of HOOPP loans will be modest, less than $100 million inccluding accrued interest.

If the turnaround team cannot demonstrate that confidence can quickly be restored, they will liquidate the asset base.
Two firms have been lined up to take the $18 billion in mortgages , with or without the GIC/HISA accounts.
Without will be a very attractive pkg,as the average interest rate is about 4.6 %.

In this case, HC will use the proceeds to pay of these acounts.
The mortgage portfolio is expected to be dollar for dollar.

The remainder of the asset base ( credit card , commercia loan business) amounting to about $750 million will also be liquidated.

Remaining funds ( estimated to be about $1.5 billion ) will be returned to shareholders.

The Wild Card is a  hostile bid.
With blood in the water, you know the sharks are circling.

Thats it folks until tommorow..





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