Home Capital Group Inc T.HCG

This baby is a golden longterm investment

[canader]

The bank has a clean bill of health,

There are no ghosts in the closet,

Share buybacks are approved, but there is a BIG market for mortgages and loans these days.
The bank will probably direct money there first.

They have 500million in  cash
They have 500million in backstop insurance

They have little reliance on cash deposits. (Big change from 2017)

All good!

But covid-19 virus is a bit of an unknown, so caution is King,

I am doing little nibbles here and there, and preparing a large pot of cash for some bottom feeding. SO to whoever is pushing the price down,....In the not so distant future, I will be saying thank you very much!!!

[jm1jm1]

Another almost 10% down again.  And now the Cdn gov't allowing banks to delay mort payments 6 months.  This will no doubt affect HCG's profits in the coming two ERs.  This sucker will be down to $5

[CanadianKia]

so far, only the big 6 are doing that. 

[CanadianKia]

"In a press release late Tuesday, Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada said that effective immediately, they will work with personal and small business clients to cope with the economic fallout of the virus, including introducing mortgage payment deferrals of up to six months and

[jm1jm1]

The big banks can weather the storm better than HCG.  They are more diversified.  HCG only has a mort. business with a very low NIM.  Regardless, every business ER will be affected in the next report.

[CanadianKia]

100% agree. big banks are big for a reason. ER will be brutal for everyone, but its also going to be expected, so it is what it is i guess

[PRTmana]

Canader, I have been folowing your posts since HCG dropped to $5 a few years ago. Your comments are always sanguine , well thought out and unemotional. I am a portfo;io manager with a large regional firm. In my personal account I own a good chunk (for me at least) of this stock.So do a few non risk averse clients of mine. I have been reading posts on stockhouse for a few years now. Yours always