Investing

Equitable Group Stock - The next one to sell?

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  • May 8th, 2017 6:58 pm
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Dec 23, 2003
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Equitable Group Stock - The next one to sell?

It seems that this is another company that may have Sub Prime issues down the line: http://www.fool.ca/2017/04/17/why-i-wou ... group-inc/

Is it worth selling now and taking a 1.5K loss?
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Aug 14, 2010
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A little late to the party eh
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Jul 11, 2015
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I dunno for sure, obviously u cant predict the future. But if ur already down, i would say hold it. Im basically in the same boat with first national.

The 5 big banks are already behind EQB though, and they pre aproved them for a $2 bill loan, i think. Also EQB increased their HISA rate, which is seeming to be drawing alot of interest(not meant to be a pun, but maybe?) so as long as they aren't in on the same scheme/scandal as HCG, it should be good. Seems like alot of people are buying EQB for the recent drop, with strong hopes the selloff, was a market over reaction.
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Apr 12, 2009
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I bought a small amount of Equitable stock last week when it was close to 45$.

With HT no longer accepting new mtgs from brokers and the announcement of the cheap line of credit that they(EB) secured I believe this should be positive for their business.

The mortgages needs to get funded somewhere. In the broker world EQ is the next up from HT.

As with HT their book is still performing very well with very low loses. Once the deposit leaking stops and people come back to their senses and need of higher returns EQ deposits should come back and EQ should increase their market share in the broker world.

Does anybody know the everage LTV of their book of loans? At origination max 75-80% in major centers and most are done at well below that. So even with market correction in my opinion the safety is there. Not even accounting for the large recent price increase in home values for GTA that are not accounted for in renewals and loans over 1 year.

That's how I came to my conclusion. If anybody can point to any flaws in my reasoning I would love to hear them.
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Dec 26, 2006
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Burnaby
I certainly wouldn't be exiting the position at this level if you already own EQ shares.

Both EQ and HCG arranged a $2 billion line of credit, but EQ managed to have a very reasonable term and the line is backed by ALL big 6 banks!

Who in Canada knows better than the big 6 in how a financial institution is managed? I have not remember in recent years that they all come together to back another business, that speaks volumes to me about the business at EQ.

Also keeping in mind that both EQ and HCB delinquency rates are BELOW the big 6 banks. If it were not for the OSC to cause a run to the banks EQ most likely would still have been humming along in the $60s trading range IMHO.
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Jul 11, 2015
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amd2500+ wrote: I certainly wouldn't be exiting the position at this level if you already own EQ shares.

Both EQ and HCG arranged a $2 billion line of credit, but EQ managed to have a very reasonable term and the line is backed by ALL big 6 banks!

Who in Canada knows better than the big 6 in how a financial institution is managed? I have not remember in recent years that they all come together to back another business, that speaks volumes to me about the business at EQ.

Also keeping in mind that both EQ and HCB delinquency rates are BELOW the big 6 banks. If it were not for the OSC to cause a run to the banks EQ most likely would still have been humming along in the $60s trading range IMHO.
Big 6 banks hey? Is it just me? or did they all of a sudden just add another bank to the list? i feel like they always said big 5 before. who is the next 6th? bank of canada? is this something we should be concerned about? I feel its odd they would just add a bank to the list all of a sudden
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jointedhornet wrote: Big 6 banks hey? Is it just me? or did they all of a sudden just add another bank to the list? i feel like they always said big 5 before. who is the next 6th? bank of canada? is this something we should be concerned about? I feel its odd they would just add a bank to the list all of a sudden
6th is National Bank.
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Sep 7, 2004
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rodbarc wrote: 6th is National Bank.
Not even sure how NA got grouped in with the Big 5. I guess while technically speaking they are the 6th largest, they are the 6th largest by a huge margin even from the smallest big 5 (CM) who is itself more than twice as small as RY.
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jointedhornet wrote: Big 6 banks hey? Is it just me? or did they all of a sudden just add another bank to the list? i feel like they always said big 5 before. who is the next 6th? bank of canada? is this something we should be concerned about? I feel its odd they would just add a bank to the list all of a sudden
It depends on the writer, but I've seen both used.
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And if it weren't for the sensibility of Paul Martin, we would be talking about the big 3.

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