Home Capital Group Inc T.HCG

Final Results of Substantial Issuer Bid

[canader]

Home Capital Announces Final Results of Substantial Issuer Bid

https://stockhouse.com/news/press-releases/2021/12/29/home-capital-announces-final-results-of-substantial-issuer-bid

[canader]

The SIB says payment within three (business) days after taking up the shares. 

[organeer]

Based on my napkin calculations, After the SIB, book value per share should go up by 16% given the number of shares bought and absorbed. Using the September 2021 book value per share hcg (36.4), i find that the new book value should be around 42.xx now. Feel free to correct my math

[canader]

Double check, or post your math, I figured this out a few weeks ago abd didnt get this high, it is not just bv*1.16. More like: BV = 50.39m * 36.4 new BV = BV - 300m new bv/share = new BV / 43.5m give that a try and see what u get ;) Regards

[canader]

Q3 2021 (before SIB) old BV = 36.4 old eps = 1.10 Q3 2021 (after SIB) new BV = 35.27 new eps = 1.27 1.27 * 40 = 50.8  (should/will trade around +/- market BS) GLTA cept Dhorties of course

[organeer]

Where did you get "40" from 1.27 x 40? from my annual EPS calculation of HCG post SIB, $5.55, and normal P/E of 10 Fair price should be $55.5

[canader]

I was basing my my eps on the last quarter earnings 1.10, not annual earnings 40? 4 quarters *  P/E of 10 = 40. or 1.27/quarter * 4 quarters *P/E of 10. (just my rough numbers) *** my annual EPS calculation of HCG post SIB, $5.55, *** True, but those numbers include release of provision from credit losses. 5.55/4 = 1.388 per quarter. Can't count on that to be a significant

[organeer]

    Sept 2021 BV = 50.39M * 36.4 = 1834M = 1.8B New BV = 1834M - 300 M New BV = 1534M   Old shares outstanding = 50.39M New shares oustanding after SIB = 43.50M   Old BV per share = 1800 M / 50.39M = $35.72 New BV per share post SIB = 1534 M / 43.50 = 35.26   But HCG EPS 4.79 (yahoo finance today) HCG earnings pre-SIB = 50.39M x 4.79 = 241M = more