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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: I sold not only HomeCapital but EQB, because Cohodes, our nemesis, is now shorting it as well. Now I'm left with First National. As much as I'd like to think I'm a long-term investor, my gut tells me once retail investors read about the news on alternative lenders this weekend, the stock sell-off will accelerate. Some insiders are also selling, even the CEO of HomeCapital who sold a massive amount of shares at 34.50 right after that buyback announcement? Another insider sold over 400k at 27.50 less than two weeks ago? For me, the last nail in the coffin was Sherry Cooper's interview yesterday on BNN (Dominion Lending). Most surprising, the CEO of First National came on Bloomberg basically saying: "It's bad for us and banks will take 20% of our market". Question: Would you sell First National and replace it with Surge Energy, which is back in an uptrend? Thanks.
Read Answer Asked by Matt on October 07, 2016
Q: Peter,
For derivative exposure re. wells Fargo, it has almost none as a percent of total exposure.
for the others:
JPM aound 7%
City around 9%
Goldman around 13%
Morgan Stanley around 28%
So on that metric only, Wells is a pretty good bet, notwithstanding the abomination of what they just did and their complete ignorance of respect of customers (50 shades of gray) and of respect of employees!!
Read Answer Asked by claude on October 03, 2016
Q: A follow up question to one earlier today. You say that you would expect a bid of between $18 and $22 for the announced privatization. CBL is only trading at around $16.50 suggesting the market either expects a lower bid (which shareholders would probably not accept) or that there is considerable uncertainty that the privatization bid doesn't happen.
Either way the market does not see this announced potential privatization as credible?? Do you agree and does the company have a history of looking at this without being serious? Thanks
Read Answer Asked by Gary on October 01, 2016