Home Capital Group Inc T.HCG

BB are back

[CanadianKia]

alright, so HCG is finishiing off the BB at a max of $50M...


so sounds like they will issue either a new NCIB in the new year to make up for 2020 or maybe even the dividends. 

That being said, they need to have a monumental share buy back if they want to, since the Q4 numbers are bound to be good and the shares will naturally rise. THey need to issue the bb at these lower Share prices we are seeing. 


thoughts?

[canader]

From BNN: I am happy, but EQB, and HCG are both doing so without waiting for OSFIs blessing. Hmmm. While the Office of the Superintendent of Financial Institutions has temporarily banned federally-regulated entities from buying back shares and increasing their dividends, Home Capital spokesperson Jill MacRae explained that the company’s structure gives it the flexibility to proceed with its

[CanadianKia]

using 50Million of profits to buy back shares is not significant enough to impact HCGs operations. I am hoping by the next earnings call they can announce a substantial buy back of 300-400M based on profits from Q4. They need to bring down the float to 30-40 million or less if they want to really give something back to shareholders.

[WBuffett1]

EQB/HCG and other CDN banks wouldn't dare to even move a finger if OSFI didnt say they could. im sure they got the OKs from OSFI Take a look at the this article (FP Article seems like they are doing buybacks using cash from their holding companies which are *technically* not subject to OSFI regulations. Remember the OSFI regulated entities are Home Trust and Equitable Bank, not the listed

[canader]

Thanks so much for the link to that post. All good in my mind now. They are holding companies. I see. a little sleight-of-hand in my book, but OSFI is on board with it, so all is good in my books.  Those restrictions, announced back in March in response to the pandemic, are that federally regulated financial institutions cannot increase regular dividends, buy back common shares or hike