RE:RE:EQB - significantly oversold? I dived in and opened a largish position yesterday morning and already up 4% so happy so far. Some info from today that came out:
1. https://www.bnnbloomberg.ca/video/demand-for-rental-units-in-canada-is-a-lot-bigger-than-numbers-suggest-benjamin-tal~2424388
Towards the end of the segment, in the last minute, Ben Tal from CIBC shows how alternative lenders like EQ gain market share when rates increase. This is likely due to many borrowers being rejected from the big 6 and having to go to alternative lenders, which is EQB's bread and butter.
2. https://www.newswire.ca/news-releases/royal-lepage-persistent-demand-coupled-with-low-inventory-drives-2022-home-price-forecast-higher-to-15--884769706.html
Royal LePage came out with a 15% price increase in 2022 on home prices, which I'm finding a bit difficult to understand - at a certain point, the housing market has to cool down. Interesting to see that Q1 numbers are really heavy and so EQB will likely have a good quarter.
3. On the insiders, I was reviewing and something like 30% of the company are owned by insiders. It's quite heavy - they are not buying now other than exercising stock options, but at least management and shareholders are aligned.
I'm still quite bullish on this one. I think as GIC rates start to go up to 4%, Canadians will flock in there which will result in easy capital for EQB to loan out.