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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 Feb 04, 2021 6:40pm
66 Views
Post# 32479774

RE:RE:RE:RE:RE:Home Capital Group Price Target Raised to C$42.00

RE:RE:RE:RE:RE:Home Capital Group Price Target Raised to C$42.00You seem to project your emotions on me because you know deep inside that I am right and your CAPS to make it clear won't change facts in your favor. Facts are facts. So let's talk math and logic : Short sellers borrow shares that they don't own based on the assumption that when prices will go down (with their help of course by selling 100 shares at a time at lower and lower prices) many shareholders will get scared and start dumping the stock at which point they can start buying them back and returning them back to their brokers. In mathematics we know that reality and modelled reality are two different things and assumptions tend to simplify reality to make it easier to understand and model thus ignoring variables or interactions between variables that might be key to explain significant deficiencies in the model. Such deficiencies could be the possibility that existing shareholders are all in the know and refuse to sell and decide to hold out and corner the shorts. Theoritically if Home capital decides to go private as an example shorts will be forced to cover and if the last man standing has 1 share or more and categorically refuses to sell the marginal value of that share is theoritically very high. When you talk about the percentage of shares sold short compared to the float you imply that it is secure and that you have a wide margin of safety but if you are honest with yourself and with the principles of mathematics you would know that is a false sense of safety because mathematically it doesn't matter if the shorts sellers can't find the shares at their desired price because if all the shareholders were in the know and decided to not sell the short sellers model would collapse. 
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