canader wrote: -Judgement DAY!! It was an Ok day for the Longs. Has more untapped potential to come
Short Sellers are entitled to their opinion,...
-They are called “short and distort” for a reason
-Most, but maybe not all, are involved in market manipulation
-FUD(fear,uncertainty and doubt) is their weapon, FACTS are their undoing
-They are financially motivated to spread FUD to induce panic selling
-Think and “do your own due diligence” before you sell your shares!
-They are sneaky and deceitful (I know this from experience!)
-Don’t get fooled by Pump & Dump tricks
-Don’t get fooled by Naked short tricks
Q3 Results: (WBuffett1’s nice summary)
Positives
- Returned to profitability
- Net income exceed street estimates
- loan book quality remains healthy with extremely low delinquency rates 0.28%!
- Average LTV of uninsured resi mortgage was 53.7%!
- Tier 1 capital of C$1.5 billion!
- Tier 1 capital ratio of 21.25%!
- and lots more
Negatives
- Low new mortgage originations (explained in the conference call that Home actually rejected over 70% of mortgage applications in the quarter as they now have new risk management process and in the process of retraining staffs and brokers to originate high quality Alt-A loans)
- nothing else
Summary
Home Capital will emerge to be an even better Home Capital with the support of Berkshire and high qualuty Alt-A loan portfolio. Essentially recession proof! Canada immigration policy is positive for Home Cap. i would argue B20 will actually be good for Home Capital as it creates another layer of barrier to entry.
Clouds over HCG (past and present)
(That did not send HCG to zero. HCG has survived, is recovering and is moving on!!)
History:
1) Mortgage broker's writing fraudulent loans
2) No CEO
3) No CFO
4) Liquidity run
5) OSC
6) class action Lawsuit
7) real estate crash (I will give you correction)
8) Grant’s Conference Oct 10th, 2017[Baggies Sell](SilberBS & Tater FAIL)
9) B20 (going to zero. Don’t think so)(Tater FAIL)
10) Will Warren Buffet sell all his shares before Q3 results (Tater. FAIL)
11) Conspiracy Theory: Mngmt Poo Pooed WB 2nd Tranche(SilberTart, P&D FAIL)
12) Return to profitability (Yeah!!: Q3).
Remaining Open Items:
1) Reinstatement of dividend (it was 0.26/Q hoping back in the 0.15 to 0.20 range)
2) Effects of B-20 and rising interest rates (Q1 2018 at the earliest)
3) Originations Q4, Q1 2018
4) shorties let me know if I am missing anything so we can keep tabs
Monthly Real estate Trends (GTA): ttps://www.zolo.ca/toronto-real-estate/trends
Monthly Real estate Trends (GVRD): https://www.zolo.ca/vancouver-real-estate/trends
Unemployment Rate: Stats Canada Unemployment Rate
What doesn't kill you, makes you stronger. (means, run and cover your shorts)
-HCG comes out stronger/wiser through all that, not weaker.
PS: CCCCLL = Cough, Cough, Choke, Choke, Laugh, Laugh
PPS: I have the long version of FUD Buster if it becomes necessary