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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

Comment by YassineNoBSon Oct 22, 2019 3:49pm
174 Views
Post# 30256011

RE:Touching PB = 1.00, Nice

RE:Touching PB = 1.00, NiceHi Canader, when the stock price hovers above book value any share buybacks are not accretive and less attractive from a purely financial standpoint. With that said NCIB and SIB are still valid options and if management thinks that they can’t get a better return using the money elsewhere  and many companies flush with cash buy their shares back because they don’t know what to do with the money or when not comfortable with the risk reward profile. I’ve seen instances where buybacks were deliberately meant to squeeze the short sellers and get them off the management backs. A dividend is a more likely option if the price is relatively stable and stays above book value. They could also grow their loan book with the extra cash and let the stock market catch up with the increased book value.
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