Equitable Group

EQB-T

Analysis and Opinions about EQB-T

Signal
Opinion
Expert
COMMENT
COMMENT
May 1, 2017

Very similar to Home Capital (HCG-T) in how they run things. The issue a lot of these companies face is that they are borrowing money at a retail level, which has hurt them a fair bit. Everybody worries about the mortgages, but those are probably fine. The problem is, they have to be funded and the funding is the bad part. If somebody doesn’t trust you when you are funding things, it becomes very difficult. That is exactly what happened in the US in 2008. (CEO just stated that there was no material decline in deposits, and they have just lined up a $2 billion standby credit facility, just in case.)

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Very similar to Home Capital (HCG-T) in how they run things. The issue a lot of these companies face is that they are borrowing money at a retail level, which has hurt them a fair bit. Everybody worries about the mortgages, but those are probably fine. The problem is, they have to be funded and the funding is the bad part. If somebody doesn’t trust you when you are funding things, it becomes very difficult. That is exactly what happened in the US in 2008. (CEO just stated that there was no material decline in deposits, and they have just lined up a $2 billion standby credit facility, just in case.)

Paul Harris, CFA
Price
$47.350
Owned
Unknown
COMMENT
COMMENT
April 28, 2017

Assuming that the contagion is not so devastating, and assuming that they can still raise capital at a reasonable cost, he thinks this company will pull through. A year from now, many of these companies will regain their losses.

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Equitable Group (EQB-T)
April 28, 2017

Assuming that the contagion is not so devastating, and assuming that they can still raise capital at a reasonable cost, he thinks this company will pull through. A year from now, many of these companies will regain their losses.

Michael Sprung
Price
$37.580
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
July 7, 2016

(A Top Pick July 2/15. Down 12.9%.) An alternative mortgage lender. A segment that people love to hate at the moment. There is concern that the housing market, particularly in Toronto and Vancouver, are going to explode and that mortgage lenders are going to be like the ones in the US, left for dead on the battlefield. A terrific opportunity to buy a quality company.

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(A Top Pick July 2/15. Down 12.9%.) An alternative mortgage lender. A segment that people love to hate at the moment. There is concern that the housing market, particularly in Toronto and Vancouver, are going to explode and that mortgage lenders are going to be like the ones in the US, left for dead on the battlefield. A terrific opportunity to buy a quality company.

David Baskin
Price
$53.650
Owned
Yes
TOP PICK
TOP PICK
July 5, 2016

Mortgages. They also have a fin Tech spin to them. The fin Tech bank can get deposits that others can’t. Trading at a very low multiple, at about 7X this year’s earnings and 6X next year’s earnings. Dividend yield of 1.53%.

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Mortgages. They also have a fin Tech spin to them. The fin Tech bank can get deposits that others can’t. Trading at a very low multiple, at about 7X this year’s earnings and 6X next year’s earnings. Dividend yield of 1.53%.

Lyle Stein
Price
$54.990
Owned
Yes
DON'T BUY
DON'T BUY
April 26, 2016

Had launched a bank, and got quite a bit of attention in January when they had a savings account that was paying 3%. It was remarkably successful, and probably more than they had anticipated. Since then it has scaled back to about 2.25%. If you are lending in mortgages and paying 3% on deposits, that is going to have a real squeeze on your net interest margin. On top of that, they did a fair amount of marketing and advertising in Q1, which may have an impact on their Q1 numbers. Also, have about an 8% exposure in Alberta.

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Equitable Group (EQB-T)
April 26, 2016

Had launched a bank, and got quite a bit of attention in January when they had a savings account that was paying 3%. It was remarkably successful, and probably more than they had anticipated. Since then it has scaled back to about 2.25%. If you are lending in mortgages and paying 3% on deposits, that is going to have a real squeeze on your net interest margin. On top of that, they did a fair amount of marketing and advertising in Q1, which may have an impact on their Q1 numbers. Also, have about an 8% exposure in Alberta.

Jerome Hass
Price
$58.840
Owned
No
TOP PICK
TOP PICK
October 27, 2015

This got tarnished with the Home Capital (HCG-T) brush. The big decline that occurred in the spring and summer was partly due to Home Capital. He has a lot more confidence in their due diligence that they do on their lenders and the systems they have set up. Trading at 1.2X BV and 1.5X earnings.

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Equitable Group (EQB-T)
October 27, 2015

This got tarnished with the Home Capital (HCG-T) brush. The big decline that occurred in the spring and summer was partly due to Home Capital. He has a lot more confidence in their due diligence that they do on their lenders and the systems they have set up. Trading at 1.2X BV and 1.5X earnings.

Don Lato
Price
$54.880
Owned
Yes
TOP PICK
TOP PICK
July 2, 2015

Mortgage lending to those without a T4 slip like contractors and the self-employed. It is a prudent lender. Loan losses are minimal as they have great credit judgment. 8 times earnings and pretty good growth rate. The dividend is half of the banks, however.

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Mortgage lending to those without a T4 slip like contractors and the self-employed. It is a prudent lender. Loan losses are minimal as they have great credit judgment. 8 times earnings and pretty good growth rate. The dividend is half of the banks, however.

David Baskin
Price
$62.500
Owned
Yes
DON'T BUY
DON'T BUY
December 30, 2014

Despite its size, this stock is quite illiquid and doesn’t trade very much. One of his concerns is that they have a lot more exposure to Western Canada then some of its peers. Has also had outperformance this year and its valuations are lofty relative to its peers.

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Equitable Group (EQB-T)
December 30, 2014

Despite its size, this stock is quite illiquid and doesn’t trade very much. One of his concerns is that they have a lot more exposure to Western Canada then some of its peers. Has also had outperformance this year and its valuations are lofty relative to its peers.

Jerome Hass
Price
$65.600
Owned
No
BUY
BUY
October 24, 2014

Good company. Screens very well right now. He has made his bets on Home Capital (HCG-T), which has a higher return on equity. In the context of everything he looks at, both of these would be a Buy.

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Equitable Group (EQB-T)
October 24, 2014

Good company. Screens very well right now. He has made his bets on Home Capital (HCG-T), which has a higher return on equity. In the context of everything he looks at, both of these would be a Buy.

Jason Donville
Price
$65.700
Owned
No
PAST TOP PICK
PAST TOP PICK
April 21, 2014

(A Top Short May 27/13. Down 66.77%.) A subprime mortgage lender. Has taken a couple of shots at this thinking that the housing market in Canada was going to roll, especially when he saw the interest rates rise last summer. Highly speculative and a risky stock to own.

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Equitable Group (EQB-T)
April 21, 2014

(A Top Short May 27/13. Down 66.77%.) A subprime mortgage lender. Has taken a couple of shots at this thinking that the housing market in Canada was going to roll, especially when he saw the interest rates rise last summer. Highly speculative and a risky stock to own.

James Hodgins
Price
$59.560
Owned
Yes
BUY
BUY
December 3, 2013

Very well run. He has taken some profits. Done an excellent job of turning around the company. Trading above tangible book (1.4 times). Could be a merger or takeover target. Have increased their dividend and returned earnings to shareholders. 1.5% dividend.

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Equitable Group (EQB-T)
December 3, 2013

Very well run. He has taken some profits. Done an excellent job of turning around the company. Trading above tangible book (1.4 times). Could be a merger or takeover target. Have increased their dividend and returned earnings to shareholders. 1.5% dividend.

PAST TOP PICK
PAST TOP PICK
September 20, 2013

(A Top Pick September 10/12. Up 48.27%.) Well run company. Similar to Home Capital (HCG-T), nonstandard mortgages. Trimmed his position because it became well over 10% of his portfolio. Expect it will go higher. Cheap.

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Equitable Group (EQB-T)
September 20, 2013

(A Top Pick September 10/12. Up 48.27%.) Well run company. Similar to Home Capital (HCG-T), nonstandard mortgages. Trimmed his position because it became well over 10% of his portfolio. Expect it will go higher. Cheap.

TOP PICK
TOP PICK
May 27, 2013

SHORT. Is running at about 20 times assets to equity and are very levered. It won’t take much to wipe out the equity as housing market slows.

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SHORT. Is running at about 20 times assets to equity and are very levered. It won’t take much to wipe out the equity as housing market slows.

James Hodgins
Price
$36.210
Owned
Yes
TOP PICK
TOP PICK
September 10, 2012

Non-bank financials are one of his two top sectors. Stock has done well but can do better. Just had an excellent quarter. Excellent management. Could be a merger / takeover candidate. 1.8% dividend and just increased.

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Equitable Group (EQB-T)
September 10, 2012

Non-bank financials are one of his two top sectors. Stock has done well but can do better. Just had an excellent quarter. Excellent management. Could be a merger / takeover candidate. 1.8% dividend and just increased.

PAST TOP PICK
PAST TOP PICK
June 22, 2012
(A Top Pick July 8/11. Down 13.95%.)
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(A Top Pick July 8/11. Down 13.95%.)
Showing 16 to 30 of 36 entries