The company is still selling well below book value. And the company as a going concern is worth well above book value.Arrgh wrote: ↑May 19th, 2017 11:07 amThey 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.
- Last Updated:
- Apr 2nd, 2018 11:41 pm
Tags:
- SCORE
- peregrine01
- Jr. Member
- Nov 28, 2011
- 143 posts
- 57 upvotes
- SCARBOROUGH
- craftsman
- Deal Fanatic
- Jan 27, 2006
- 8253 posts
- 2669 upvotes
- Vancouver, BC
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.
- Mosaaa
- Newbie
- May 4, 2017
- 4 posts
HSBC not helping HCG. Sorry everyone!
HSBC not going to help Home Capital.
https://www.google.ca/amp/business.fina ... rescue/amp
Ouch!
What are people planning to do with their GIC's and other assets there? Just wondering who is cashing out?
HSBC not going to help Home Capital.
https://www.google.ca/amp/business.fina ... rescue/amp
Ouch!
What are people planning to do with their GIC's and other assets there? Just wondering who is cashing out?
- alanbrenton
- Deal Expert
-
- Apr 21, 2004
- 44464 posts
- 11350 upvotes
That was posted hours ago. Didn't know hsbc is located on bay street. 
- socialmindset
- Jr. Member
- Nov 30, 2015
- 165 posts
- 30 upvotes
- Toronto, ON
Shorts will be shorts...lolMosaaa wrote: ↑May 19th, 2017 4:29 pmHSBC not helping HCG. Sorry everyone!
HSBC not going to help Home Capital.
https://www.google.ca/amp/business.fina ... rescue/amp
Ouch!
What are people planning to do with their GIC's and other assets there? Just wondering who is cashing out?
- duwangren
- Newbie
- Aug 17, 2016
- 79 posts
- 5 upvotes
Mosaaa wrote: ↑May 19th, 2017 4:29 pmHSBC 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?
- HammerRFDer
- Sr. Member
- Jul 13, 2007
- 665 posts
- 217 upvotes
- Toronto
http://www.newswire.ca/news-releases/ho ... 13464.htmlcraftsman wrote: ↑May 19th, 2017 1:27 pmReports 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.
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.
- peregrine01
- Jr. Member
- Nov 28, 2011
- 143 posts
- 57 upvotes
- SCARBOROUGH
I don't think the day to day means much at all. But the depositor outflow has definitely slowed over the last week.HammerRFDer wrote: ↑May 19th, 2017 4:56 pmhttp://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.
- HammerRFDer
- Sr. Member
- Jul 13, 2007
- 665 posts
- 217 upvotes
- Toronto
Of course it's slowed. If HISA withdrawals continued at early May's rates, their deposits would be in the negatives!peregrine01 wrote: ↑May 19th, 2017 5:31 pmI don't think the day to day means much at all. But the depositor outflow has definitely slowed over the last week.
Are you sure you wish to carry out this operation? You betcha.
- socialmindset
- Jr. Member
- Nov 30, 2015
- 165 posts
- 30 upvotes
- Toronto, ON
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.HammerRFDer wrote: ↑May 19th, 2017 5:57 pmOf course it's slowed. If HISA withdrawals continued at early May's rates, their deposits would be in the negatives!
- craftsman
- Deal Fanatic
- Jan 27, 2006
- 8253 posts
- 2669 upvotes
- Vancouver, BC
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.HammerRFDer wrote: ↑May 19th, 2017 4:56 pmhttp://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.
- peregrine01
- Jr. Member
- Nov 28, 2011
- 143 posts
- 57 upvotes
- SCARBOROUGH
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.socialmindset wrote: ↑May 19th, 2017 6:17 pmThe 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 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.
- boyohboy
- Deal Addict
- Dec 6, 2006
- 3969 posts
- 800 upvotes
- Toronto
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.peregrine01 wrote: ↑May 19th, 2017 8:02 pmI 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.
- Sanyo
- Deal Fanatic
- Feb 9, 2009
- 5980 posts
- 3216 upvotes
If some bank comes in to buy some of the mortgages or even buys out HCG it would help with the confidence.
- burnt69
- Deal Addict
- Oct 6, 2015
- 1300 posts
- 684 upvotes
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.