Home Capital Group (HCG.TO)

Warren Buffet saw value in this company that offers non-conventional financing. Longer term they will likely need to add a dividend. The topping of the residential market may mean the upside in this company could be limited. He would suggest holding some of this, although there are others with less risk and lower volatility. Yield 0%.

The glory days are probably gone. They have done a lot to repair the balance sheet and improve liquidity. Banks are becoming more competitive in this business.

Is an alternative mortgage lender. She prefers the large cap banks for the mortgage market. Housing sales have slowed. The stock may be cheap on an earnings basis. However, the banks are more diversified and not just a housing market concern.

(A Top Pick Oct 5/17, Up 10%) It is a Top Pick today. He expects the resumption of a dividend. It should move back to a historical valuation, which would be a nice return.

He is sticking with this name. It is really cheap. He expects Warren Buffet will expect a nice dividend from this company and it could afford to pay a nice one.

Worst is behind it, with funding in place. She’s never invested in this sector. New mortgage rules as of Jan 1 have affected this sector more than Canadian banks. Best of growth in the Canadian housing market is behind it. Mortgage volume is slowing and they have to be careful of their mortgage sources.

They had troubles last year with mortgages issues. Their last quarter was pretty decent. They prefer in the alternative lending space Timbercreek Financial Corp (TF-T).

(A Top Pick Jul 21/17, Up 3.15%) He re-entered it after the pullback. It is a bet on the interest rates not doing anything too bad.

He would not buy this stock, preferring to hold more dominate players in the financial space. Being 9 years in an economic expansion, this company is still in a “show me” phase. The real estate market may be making a bearish turn.

He says Warren Buffet came to the rescue last year. Central Bank tightening is causing risk for this company going forward, especially this late in the real estate cycle. He would avoid this one.

He sees a long term down trend may still be in effect. He thinks this space should be avoided and wonders if there is a better place for your capital?

He thinks this stock is going to come back, but the market wants to see continued deposits. The issue of fraud was clearly not good, but shareholders can take comfort that this was not creating artificial revenue. There were no bad mortgages. He would buy it at this point.

They had the meltdown and recovered somewhat when Warren Buffett invested but it has been consolidating, forming a triangle pattern. Until it breaks out to the upside, he would not buy it.

They were caught up in an unfortunate situation. He likes the concept operating in areas outside of the banks. They accepted too much risk. It takes time for the wounds to heal. It is going to take a while to get capital appreciation. Relatively safe investment with no excitement for now.

The worst is over for them. You are starting to see an analyst upgrade (from TD). They paid their dues and suffered a lot because of their issues from last year. It fared worse than they should have. There were a few bad apples but it is still a well run business. EQB-T was his preference last year.