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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

Post by Northforce13on Jun 03, 2020 4:37am
219 Views
Post# 31105103

Throw in the Towel

Throw in the TowelCan't fight the tape anymore. 

As I conteplated way back in February, I suspected governments would print massive amounts of money and we might see stock prices rise even as their earnings decline.  Which is what is happening. 

It freaks me out and annoys me to no end to realize that the earnings yield on everything is going to be much lower...  I can't sit on the sidelines hoping for a pullback to reasonable risk/reward ratios because the goalposts have been moved, probably permanently.  

I bought back into 5 bank stocks today.  Lets hope they are right about their PCLs, or at least not too far off the mark.  

EQB:  Moderate position, paid a bit more than what I exited at some weeks ago.  

HCG:  Less than EQB, even though they are cheaper than EQB P/B wise, EQB already has the loan portfolio and is fully deployed, while HCG still has to deploy capital.

Versa Bank:  Small bank with low ROE.  However, their leverage ratio is very low, if you were to adjust the ROE for the leverage ratio... their ROE would be superior to the big 6 and EQB/HCG.

Sberbank:  Small position in this Russian bank.  ROE > 20%.  It's largely affected by currency movements however, so one must have a bit of faith in the Russian Ruble.

Wells Fargo:  It would have to double to get back to its highs.  It is working through a lot of problems over the next year, hence it is depressed.  I originally liked Citigroup more, at a lower P/B, but Wells is much more USA centric, while Citigroup is all over the world, which makes me less comfortable.

GLTA!




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