Investment Q&A

Q: Home Capital was once a 5%+ weighting in the Balanced Equity portfolio; now it is under 2%. Are you more inclined to add to the position here or cut and run, particularly since the P/F now has 23 positions and your stated preference is for 20? Also referencing the seeking alpha report is this a case of where there's smoke, there's fire?

Q: HCG getting clobbered again. Can't see any reason. Can you?

Sheldon

Q: A recent purchase at $30. Down 5% in 2 days. Is this stock a keeper?

Q: is this a good long term buy

Q: ESL and HCG seem to be laggards this year. Are they worth holding or would you suggest changes in BE portfolio going forward?

Q: HCG investors may be interested in this Financial Post article, dated Jul. 28.
http://business.financialpost.com/investing/market-moves/home-capital-group-inc-shares-fall-the-most-since-facing-mortgage-fraud-fallout-in-2015?__lsa=c53a-f671

Q: What I see from the last several quarters is a company that will not grow as fast as it did in previous years. Nevertheless, with revenue and originations up, moderate EPS should eventually appear. The company has a very low P/E, low payout ratio, rising dividends and decreasing share count. Is this morning's sell-off not a buying oportunity?
Are investors simply too fearful of the name to even look at the numbers and see some value? Or perhaps I am missing something here?


Regards
John

Q: Your opinion please on recent results and market reaction. Thanks John

Q: I am reviewing my HCG holding and need help with a few metrics. The LTD, while it has come down is still at $41/share ($2.9b/70m). Is this a level of debt that one should be concerned about? Also expected earnings growth of 7%($4.11-4.70) does not seem great over the next 2 years. Finally despite the recent share buy-back, total shares appear to have grown 69 to 70 million. I have taken these numbers from RBC Direct.
Your comments as usual are appreciated.
Mike

Q: I bought HCG during it's "glory" days, in Oct. 2014, at $51.10. Currently, I've been patiently waiting for the good days to return for the stock price. I have a 40% capital loss. It seems you like the company and the stock. Since it's in my TFSA, I can either wait for a recovery, or take a loss and deploy what's left of my capital elsewhere. What do you see for the stock in the next 1-2 years?

Q: I recently purchased shares of Magna on the idea that the sector is simply oversold and given a 5 year time horizon is as close to a sure thing as there is in the markets. When I look at the US markets in particular there are a lot of still beaten down sectors. Automotives is one of them. In Canada I am having greater trouble finding these kinds of bargains, while in the US there are chemicals companies, consumer discretionary companies, oil refiners and even banking which are very cheap and all of which could make some very nice moves akin to the one made in the materials sector these last few months. Do you see any of these unloved sectors here in Canada and/or which of them either here or in the U.S. would you currently favour. Thank-you as always for your answer.

Q: Good morning 5iTeam -
I've read an article which Marc Cohodes said he's shorting HCG as there are huge irregularities $1.9B worth in their mortgage biz. Oaken is pumping their higher % rates in all ad spaces. To quote the good doctor from Marathon Man --- "Is it safe."

Q: You mention that HCG may be a good play post Brexit. I note that they had two substantially reduced dividend payments in 2014. Are you aware what the reason for that might have been? Just wondering if there is anything on their horizon that might cause that to happen again?
Thanks

Q: Except for Peter, all of the analysts commenting on about HCG on BNN in the last few months are negative on this stock. What are they missing?
Tanks

Q: I do not have any exposure to financials. I am conservative and looking more for growth. Considering equal weights of HCG and EFN. Would these make a good pairing? Thank you .

Q: How would you rank these 3 for growth for a younger investor over the next few years if you had to choose only one?

Q: according to td webbroker the INK insider report shows the CEO Martin Reid selling over 42% of his holdings on May 26th. Should investors be concerned??

Q: Peter and Team,

How exposed is Home Capital to the Vancouver and Toronto markets. Would a reversal of house price gains in those cities materially affect the stock?

thanks,

Marc

Q: Wanted to add something to Bryan's question about Concordia, relating to Cohodes.

1- Cohodes shorted OpenText during the financial crisis. The stock instead went up and shortly after, he was forced to close his hedge fund. OTC is up 410% since his short.
2- Cohodes is known for liking "a fight". He likes shorting because of the confrontation aspect.
3- Cohodes often has little facts, but succeeds at making retail investors second-guess themselves, at instilling doubt.
4- If you watch his appearances on BNN, you're likely helping his cause, because BNN will see a higher viewership and bring him back on.
5- Best to not comment about Cohodes' points of view, on any social media (stocktwits, stockhouse, twitter). That only makes him more popular.

Q: is this a decent financial with upside or is it dead money.what other small financial would be a better choice long term.i also own home capital already