Q: Isn't it a a bit too coincidental that we learn that both Royal Bank and BMO are selling uninsured mortgage backed securities, a few days before the Home Capital death spiral? You have an optimistic bias, and typically trusting towards management, so I speculate that you will answer that there is nothing much to think of it, but could you take a distrusting view on this (without being paranoid) and guess what could have motivated them to do that?
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: In light of the recent events with Home Capital (HCG) would you have any
concerns with continuing to hold FC ? Joe
concerns with continuing to hold FC ? Joe
Q: HCG has hired BMO and RY as strategic advisors and have now secured a 2 billion LOC. Thoughts please??
Q: With the demise of HCG there is plenty of blame to share. I am disappointed with 5I continuing to maintain its rating of B+ right to the end. You extensive experience in the field did nothing for your subscribers. As with most other advisory services your tune only changed when it was far too late to make a difference. I can add DH to the comments. It was only my own common sense and intuition that protected me in both cases. I hope 5I does some soul searching and simply does not write this one off as another miss.
Q: You have commented in the past to the effect that you have never seen a Canadian stock recover from a move below 10 cents- Would you still hold this view with LGQ ? Thanx Robbie
Q: Can you confirm that ZUB is the better from a performance analysis standpoint. My take is that as both are priced (?) in CAN $, ZBK will reflect changes in the US/CAN $ relationship which are separate from the underlying bank performances while ZUB because it is hedged will be a more accurate measure of the underlying assets behaviour. Is this correct?
Q: Since CIBC is the most sensitive to eventual housing downturn, how secure would be my RRSP and TFSA accounts with CIBC Investor's Edge in case CIBC gets into trouble. Thank you for great service. Milan
Q: Worth reading:
How Banks Can Compete Against an Army of Fintech Startups
https://hbr.org/2017/04/how-banks-can-compete-against-an-army-of-fintech-startups
How Banks Can Compete Against an Army of Fintech Startups
https://hbr.org/2017/04/how-banks-can-compete-against-an-army-of-fintech-startups
Q: With the information provided, it seems that the company has no choice but to use a LOC with a very high funding rate. How come they can t offer GIC with well above market rates to fund their current needs and stabilize the situation? Would there be no buyer with cdic protection ? Also, why do they need as much as $2B ? Thank you.
Q: what I have learned is that some of these short sellers are very well researched. that cohodes likely knows more about this stock than 99% of the long investors. fundamentals looked good. do you think home capital will go bankrupt or ..
Q: EQB.PR.C - do you think the $4 drop today is justified.
If not I am thinking of adding a little to my position before a possible rebound.
If not I am thinking of adding a little to my position before a possible rebound.
Q: Wow. All that selling. My question is who is brave enough to be on the other side of the trades? How does HCG get itself through 2008 etc with its history and falter like this?
Q: Hi 5i Team,
Do you know who or what APP Research is? The person BNN had on this morning certainly did not hold back on HCG. In case you missed it, he mentioned liquidation as a distinct probability. Unfortunately, I still hold the stock.
Thanks for your comments.
Do you know who or what APP Research is? The person BNN had on this morning certainly did not hold back on HCG. In case you missed it, he mentioned liquidation as a distinct probability. Unfortunately, I still hold the stock.
Thanks for your comments.
Q: According to Webbroker, it has an operating margin of 61%, ROE 16%, payout ratio of 9.8% and no debt. It looks like a quality company that's down about 28% on panic. If it's as good as it's stats appear to be it's on sale. What do you think of it's quality and prospects? Thanks.....
Q: Does the $2 billion LOC that HCG is hoping to secure today completely negate the run on deposits? It looks like the deposits were roughly $1.4 billion. Are these the only deposits taken by HCG or are there other subsidiaries that are also about to get the same treatment?
Thanks, Peter
Thanks, Peter
Q: Do you think HCG's "problems" could spread to FN?
Q: What would you do if you were invested in this stock?
Q: I don't own HCG, so I think I'm objective. Don't you think this is a big black eye for the Canadian market? Why doesn't the regulator step up and make clear that the violations committed by management does not mean the company is not viable? Or do they know this, after what, a year and a half of investigating? Instead it allows a publicity-seeking chicken farmer to spread innuendo and essentially create a run on the bank? Just a complete screw up by all involved, IMO.
Thanks,
Alex
Thanks,
Alex
Q: What about an investment in equitable at this juncture given it is being tainted by home capital? Would they not benefit from Home Capital's demise? Thx
Q: I'm looking at it down 45% today. Buying opportunity? Thanks.