Home Capital Group Inc T.HCG

HCG Equity Lender selling at 50% off!

[Giocatorei]

Home trust is an equity lender.  They have been from the very beginning and this is why their loss rate is very low.  THey charge lender fees and premium rates of interest. So how can the stock not be a screaming buy at 50% discount.  

They are also focused primarily on residential mortgages or small comercial properties.  They finance deals the A lenders no longer look at.  So they are able to pick and choose their deals.  They are getting what would have been a A deal were it not for the fact the borrower is self employed.  They like low LTV and they are not shy to start legal action to recover their investment.  Whereas the banks will wait 3 or 4 months to take legal action and then wait some more Home Trust acts fast, preserving their equity position but charging hefty fees.  The low LTV is after using very conservative appraisals.  

You can also bet that the payment deferrals that borrowers are getting are going to be a huge bonus to Home Trust.  Not only will they earn heafty premiums on these loan deferrals but it is also a way to reinvest theis money at a very low cost.  HCG is a great deal and could easily becaome a $50 stock after a few more great quarters and when dividends are reinstated.  

If you don't believe any of this ask any mortgage broker that places deals with Home Trust!

Did I mention their credit cards?  They are all secured by second mortgages or cash, yield a minimum of 9%, with the reglar fees that other cards have.  Default rate =  ZERO.  Unfortunately it is not a great portion of their business.

In any case there is no reason for HCG to trade at such a huge discount.

[Northforce13]

You don't appear to be up to date on the news. There's a virus spanning the globe right now and the government reaction to the virus is destroying global economies and plunging us all into a modern Great Depression.   That might have a little something to do with the depressed stock prices of many companies. Just last week people were saying similar things on the RET boards

[canader]

Thanks Dhortie Azz-wipe BEE-EYE-CHEZZ, Another round of buying coming up for me. HCG:(  1,276,409,  05/15,  Change, 305841 , 31.5% ) Northforce. I remember you being a glass half full last time you were here a year+ ago. Now you have definately flipped to a glass half empty kinda guy. Actually, I think this account is just a DrSilberfart alias account. Where for

[Northforce13]

And all the economic pain, hardship and difficulty in figuring out what that balance will be.  The magnitude of damage permanently done to sectors of the economy that must be permanently altered or abandoned in pursuit of that balance is still to be seen. With all that being said, I'd love to reenter and go long, but I feel the potential damage isn't fully priced in or appreciated

[canader]

So, Why aren't you and EventHorizon over on EQB posting on EQB?? Why are you and EventHorizon posting about EQB on HCG? strange. Oh, I know. No audience over on EQB. And, If you don't have skin in the game what are you doing loitering around here for. I figure a smart guy like yourself would have better things to do than loiter on a board where he has no $$ skin in the game

[Northforce13]

Intelligence is always relative I suppose.  My purpose for "loitering" around boards is to glean additional insight that might prove valuable in investment decisions.  And like I've said twice, another poster posted some things I enjoyed reading and were complementary to what I knew or helped confirm it.   Oddly enough, I used to appreciate Silbergleit's

[canader]

What I could really go for intellectually is someone who posts the pros and cons. These are the things that can go right, and these are the things that can go wrong. And then it is left to the reader to decide. All the one sided conversations are biased and mostly disposable and useless. Sadly, it is going to be very hard to find a truly objective post on here.  Now for the Banks, They

[EventHorizon]

I would like to say thank you to both Northforce13 and canader for sharing both facts and opinions. Please, do not take this forum too personally or it will devolve into something that will not benefit anyone (for e.g. see Altagas forum, ticker ALA). I know that owning HCG and some other stocks have been quite frustrating but there is no reason for ad hominem attacks. I come to bullboard to learn