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Home Capital Group (HCG-T)
NEW AI Investor Insights
107 watching
TSE:HCG
44.26
0.00
(0.00%) 1d
Financials
Technical Analysis
Sep 1, 2023, 8:00 pm
0
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COMMENT
Deal with Smith Financial. High quality. Very profitable, offers mortgages at higher rates than banks. ROE is very high. Reasonable valuation, could reach the $50s, possibly room for another bidder. Smith has picked up a good asset at an attractive price.
investment companies / funds
$42.690
Unknown
DON'T BUY
If you want to own a lender, please own Canadian bank stocks instead. HCG and others don't have the same access to capital, so they can get caught in a liquidity squeeze. Borrowers pay a higher rate of interest. If housing market has a hiccup, HCG would be more exposed than the banks.
investment companies / funds
COMMENT
A very good company in the alternative mortgage space. Big question is, how will all these companies hold up as interest rates run up (how far and how fast?). HCG offers shorter loans, so there's some margin of safety.
investment companies / funds
HOLD
Long-term history tells him the current price, though at 5-year price to book high, could be a lot higher. FMV potential is well over 100% above current stock price. Don't sell. Big issue is when will they start paying a dividend, instead of just buying back stock?
investment companies / funds
STRONG BUY
A few years ago, it was one of his beloved stocks until it got slammed by comments from the U.S. and OSC. It has since rebounded. Its fair market value is 154% higher than the current price. If it can break out from the current $45 price, this will enjoy a nice upside. They are also buying back a lot of shares, which he thinks is stupid; raise the dividend instead.
investment companies / funds
DON'T BUY
Not keen. If you have a sizable portfolio, you probably already have a nice house, so better to diversify your equity portfolio out of what HCG does. Warren Buffett exited.
investment companies / funds
DON'T BUY
Used to own, but bad things happened and he got out. Economy is lousy, but not as lousy as people thought. Terrific recovery. Still concerns about small businesses. More comfortable investing in the Canadian banks.
investment companies / funds
BUY
What is interesting about them is that they came through mortgage hell in 2008 with barely a ripple. It has also emerged from COVID-19 issues with barely a ripple. It is very cheap compared to its long term book value of $45. The fair market value is huge and the balance sheet is fine. He wishes they would institute a dividend that would give investors more comfortable that everything is fine. He thinks deferred mortgage payments will not be an issue for them. In a recovery, it will do very well.
investment companies / funds
DON'T BUY
Management did a great job turning this company around. They probably have a few more risks to deal with at this point. He likes what they are doing. He is not buying it because he does not think you have to go this far down the risk curve right now.
investment companies / funds
DON'T BUY
It became a show-me stock after its scandal, going sideways, running up only recently then has gone sideways, slightly breaking down now. He wouldn't buy it now, but would rather buy a lifeco. This will underperform in a market slowdown.
investment companies / funds
WEAK BUY
He recommended years ago when it was around $4. The stock hasn't yet recovered back to its book value. This stock used to trade at a low at its book value before. He believes in the company though he would like to see a dividend.
investment companies / funds
PAST TOP PICK
(A Top Pick Oct 01/19, Up 41%) He recommended it when it was basing and, as he predicted, it popped. Now, it's peaking, so he expects a 10% pullback, so wait.
investment companies / funds
BUY ON WEAKNESS
They operate where banks don’t tread. A legitimate business. They got caught in a squeeze with poor transfers in, but now they are doing well. As long as the housing market and economy goes well, it will continue to do well. The low interest rate has helped the company.
investment companies / funds
DON'T BUY
Confidence in the market is such a big thing for these alternative or sub-prime lenders. Hard time buying it at these levels. It can be a beast of a company, and will probably get back to that in time.
investment companies / funds
PARTIAL SELL
Recently he took profits, because his cost base was a third of its current price. It's had a tremendous run. The company has come back from its problems a few years ago, thanks to new managers who will continue to do well. He would buy more later. You can take some profits now.
investment companies / funds
Home Capital Group(HCG-T) Rating
Ranking : 1 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 0
Home Capital Group(HCG-T) Frequently Asked Questions
What is Home Capital Group stock symbol?
Home Capital Group is a Canadian stock, trading under the symbol HCG-T on the Toronto Stock Exchange (HCG-CT). It is usually referred to as TSX:HCG or HCG-T
Is Home Capital Group a buy or a sell?
In the last year, there was no coverage of Home Capital Group published on Stockchase.
Is Home Capital Group a good investment or a top pick?
Home Capital Group was recommended as a Top Pick by on . Read the latest stock experts ratings for Home Capital Group.
Why is Home Capital Group stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Home Capital Group worth watching?
0 stock analysts on Stockchase covered Home Capital Group In the last year. It is a trending stock that is worth watching.
What is Home Capital Group stock price?
On 2023-09-01, Home Capital Group (HCG-T) stock closed at a price of $44.26.
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