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HCG.T - Home capital Group

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  • May 26th, 2017 4:35 pm
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Newbie
Nov 28, 2011
58 posts
31 upvotes
SCARBOROUGH
Arrgh wrote:
May 19th, 2017 11:07 am
They just added another good credible director. Bank of Canada also gave a shot of confidence to the Canadian banks, and housing market except for some pockets of concerns.

Many signs are pointing to HCG further stablizing. Think I might wait just a little longer, to profit.
The company is still selling well below book value. And the company as a going concern is worth well above book value.
Deal Expert
User avatar
Apr 21, 2004
37006 posts
7457 upvotes
That was posted hours ago. Didn't know hsbc is located on bay street. :)
Newbie
Aug 17, 2016
43 posts
4 upvotes
Mosaaa wrote:
May 19th, 2017 4:29 pm
HSBC not helping HCG. Sorry everyone!

HSBC not going to help Home Capital.
https://www.google.ca/amp/business.fina ... rescue/amp

Ouch!

I do not understand this news. Why HCG case has something to do with the HSBC? HSBC is not even one of the big 6.
What are people planning to do with their GIC's and other assets there? Just wondering who is cashing out?
Sr. Member
Jul 13, 2007
511 posts
110 upvotes
Toronto
craftsman wrote:
May 19th, 2017 1:27 pm
Reports are that HISA deposits are now GROWING in HCG - http://www.businessinsider.com/r-canada ... ise-2017-5. If this trend continues (even in the short terms - ie next few days or a week), we could see a short squeeze happening as one of the major road blocks gets chipped away.
http://www.newswire.ca/news-releases/ho ... 13464.html
Wednesday: HISA up by $3.4m, GICs down by $15m.
Thursday: HISA down by $4m, GICs down another $8m.

Depositor liquidity is still trending downward, and the mix is shifting toward less secure HISAs instead of predictable GICs.
Are you sure you wish to carry out this operation? You betcha.
Newbie
Nov 28, 2011
58 posts
31 upvotes
SCARBOROUGH
HammerRFDer wrote:
May 19th, 2017 4:56 pm
http://www.newswire.ca/news-releases/ho ... 13464.html
Wednesday: HISA up by $3.4m, GICs down by $15m.
Thursday: HISA down by $4m, GICs down another $8m.

Depositor liquidity is still trending downward, and the mix is shifting toward less secure HISAs instead of predictable GICs.
I don't think the day to day means much at all. But the depositor outflow has definitely slowed over the last week.
Sr. Member
Jul 13, 2007
511 posts
110 upvotes
Toronto
peregrine01 wrote:
May 19th, 2017 5:31 pm
I don't think the day to day means much at all. But the depositor outflow has definitely slowed over the last week.
Of course it's slowed. If HISA withdrawals continued at early May's rates, their deposits would be in the negatives!
Are you sure you wish to carry out this operation? You betcha.
Jr. Member
Nov 30, 2015
120 posts
23 upvotes
Toronto, ON
HammerRFDer wrote:
May 19th, 2017 5:57 pm
Of course it's slowed. If HISA withdrawals continued at early May's rates, their deposits would be in the negatives!
The GIC balances are the main concern here. Slowing of HISA withdrawals or some increased deposits would indicate that the run on HCG has slowed which in turn bodes well for the GIC balances which will allow them to continue as a going concern. I don't think we will know for sure until after the OSC hearing in June as that will either intensify the withdrawals or stop them cold.
Deal Fanatic
Jan 27, 2006
5800 posts
1345 upvotes
Vancouver, BC
HammerRFDer wrote:
May 19th, 2017 4:56 pm
http://www.newswire.ca/news-releases/ho ... 13464.html
Wednesday: HISA up by $3.4m, GICs down by $15m.
Thursday: HISA down by $4m, GICs down another $8m.

Depositor liquidity is still trending downward, and the mix is shifting toward less secure HISAs instead of predictable GICs.
The fact that some new money is flowing into HCG (regardless if it's GIC or HISA) shows a certain amount of faith in the depositors that the money is safe. I expect that we will see HISA in this positive/negative pattern for a few more days (maybe even a week). The GICs aren't too much of a surprise as I'm sure there are those who are holding GICs left instructions with the agent/broker to get their money out as soon as possible when the story first broke so we are now seeing the execution of those instructions... in addition, the level of new money going into GICs may be lower as it takes more faith to lock in for a year than having it readily available in a HISA.
Newbie
Nov 28, 2011
58 posts
31 upvotes
SCARBOROUGH
socialmindset wrote:
May 19th, 2017 6:17 pm
The GIC balances are the main concern here. Slowing of HISA withdrawals or some increased deposits would indicate that the run on HCG has slowed which in turn bodes well for the GIC balances which will allow them to continue as a going concern. I don't think we will know for sure until after the OSC hearing in June as that will either intensify the withdrawals or stop them cold.
I think that the damage by and large has been done. The statement of allegations are mostly against the former officers who have since left the company.

I also think that there's strong pressure for the OSC to settle this after all the havoc that they've caused. I can't imagine that OSFI is happy with what they've done. I don't think the Ministry of Finance is happy about this either.
Deal Addict
Dec 6, 2006
3446 posts
543 upvotes
Toronto
peregrine01 wrote:
May 19th, 2017 8:02 pm
I think that the damage by and large has been done. The statement of allegations are mostly against the former officers who have since left the company.

I also think that there's strong pressure for the OSC to settle this after all the havoc that they've caused. I can't imagine that OSFI is happy with what they've done. I don't think the Ministry of Finance is happy about this either.
Aside from the OSC hearing on HCG... there should be a hearing on OSC for they did. Was that simply a power-trip or a plan for someone to benefit from that action.
Deal Addict
Feb 9, 2009
3416 posts
1038 upvotes
If some bank comes in to buy some of the mortgages or even buys out HCG it would help with the confidence.
Member
Oct 6, 2015
325 posts
132 upvotes
Sanyo wrote:
May 20th, 2017 6:15 pm
If some bank comes in to buy some of the mortgages or even buys out HCG it would help with the confidence.
Depends upon the sort of discount involved. If HCG sells mortgages and they're discounted heavily (for example), their accountants could require them to write down the rest of the book. Impairing market confidence.

In fact, the whole matter of pledging twice the mortgages "required" to HOOPP to secure a very high interest rate loan may be enough for the auditor firm of HCG to force them into systemic write-downs across the entire book. Meaning that the claimed "book value" probably is nonsense.
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