Stockchase Opinions

Jason Donville HomeQ Corp. HEQ-T BUY Dec 06, 2010

Reverse mortgages. Very well run. Have a banking license now. Decent dividend.
$6.660

Stock price when the opinion was issued

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Reverse mortgages. One of the quiet, stable businesses that generates predictable cash flow. Doesn’t have a huge growth profile.
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(Market Call Minute.) Reverse mortgages. Has grown their business very well. The market just doesn't understand it.
TOP PICK
Largest originator of reverse mortgages in Canada. Sold off significantly because of concerns about their ability to source capital. Major risk would be if a bank and initiates their own business, but he can't see this happening.
BUY
Pretty much the only originator in reverse mortgages in Canada. 12.6% yield.
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The only reverse mortgage market player in Canada. Have more than enough cash coming in to cover distributions. Very healthy dividend yield of about 16%.
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(Market Call Minute.) Have a monopoly on reverse mortgages.
PAST TOP PICK
(A Top Pick June 12/08. Down 21.36%.) Management cut distributions because they thought it was the prudent. Converting to a scheduled 2 bank in Canada and will be able to diversify their funding source in terms of taking in deposits.