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Home Capital Group Inc HMCBF


Primary Symbol: 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
Post by Wineauxon Jun 22, 2017 9:32am
91 Views
Post# 26391656

Under the circumstances this is a home run

Under the circumstances this is a home runUltimately this deal is about convincing the average GIC investor to place their savings with Home Trust or Oaken. The lack of trust and the resulting run on deposits is the real problem right now. This deal, despite the dilution is in the best interests of shareholders as it should restore confidence and the inflow of funds. The thinking will be, "If it's good enough for Warren Buffet, then it's good enough for me."

The money raised will be used to heavily advertise and ramp up GIC deposits. The second tranche is not needed as the Buffet effect is already there. 

Under the circumstances I think the board has hit a home run and should be congratulated for a job well done. 




Bullboard Posts