Investment Q&A

Q: Reportedly ENB wants to raise as much as US$7 bil for general corporate purposes including reducing debt & financing capital spending,but it does not expect to spend the funds on any specific project.What is going on?The market certainly dislike as it took a sharp drop today

Q: I am up >60% for savaria and was wondering if it is a good idea to take partial profits?

Or is there an optimum time to take partial profits?

Thank you,
Andrew

Q: Hi 5i, as a long in HCG ~3% of retirement account, been doing some land title searches online and google'ing this morning. My comment count on Seeking Alhpa is now a grand total of one (1). I posted the response below to the comment section. Additionally, some links at the end showing what kind of secretive and nefarious characters William Walker and Robert Wilkins are (this is completely tongue in cheek).

"sorry if someone made a similar post I haven't read to the bottom of the comments.....
There is an assertion above that one could do a historical search of the database and hypothesis that it would turn up more dirt, but hasn't been done. Anyone can subscribe to teranet for ~$1500 a year and search this database online traveling. I live in Toronto, Ontario, Canada. Additionally, you can pay per search online basically the same rate as doing this in person. Most real estate lawyers, and commercial and residential brokerages already have these subscriptions in one form or another. I just did a bunch of searches to satisfy myself as I'm long HCG ~3% of my retirement portfolio. So if any shareholders or short positions want they can do now, or ask a friend that has access. Also in the comment section someone makes a note about the difference between a sale transaction and a mortgage transaction appearing in this searches. Both mortgages registered on title on a property and purchase and sale transactions are searchable. Also, for more info on Wilkins and Walker, can search by the names they go by day to day, Bob & Bill respectively. Here are some links for those interested:
http://www.hamiltonnews.com/news-story/5427075-meet-the-nominees/
http://www.thespec.com/news-story/4281815-heritage-themed-boutique-hotel-coming-to-ancaster-s-wilson-street/
https://www.hamiltonchamber.ca/hamilton-chamber-of-commerce-ancaster-division-announces-nominees-of-2013-ancaster-community-awards/
http://www.lferguson.com/around-ancaster/"

Q: if hcg lost 30 to 40 percent on the equity of a house and put that into context of the vancouver housing market,with some of their clients inability to pay their loans i could see their being a valid concern. why not wait it out grab some shares at tax loss season in 2017 or later

Q: Peter and team,

Home Capital has responded to the short report (at least it appears they have) and the market appears to like the response. What are your thoughts on the release? Does it go far enough to make you feel "warm and fuzzy," in response to the allegations of the short report?

Thanks,

Marc

PS. Congratulations on the enormity of you success... its helping my savings grow and my wife feel more comfortable in our financial future :)

Q: The ceo was still on paid leave while the investigation is going on. Now that he has resigned, does that mean he is not getting paid anymore? Basically, he still owns lots of stock?

Q: Any particular HCG is getting clobbered today?

Is this becoming another CXR? I have learned (the hard way) that if shorts are in, it's better to get out. I'm down 42%. Is there anything that will actually make the stock recover?

Thanks

Q: I read the short report on Seeking Alpha. While some of it is the usual junk these guys spew out, they did seem to find a nugget with the loans transferred to the related party (if that's actually what happened).
Could you give some potential reasons why such transfers would occur?

Thanks.

Q: Why the big drop today? Is their story still intact?
Thank you for an excellent service.

Q: With a ~7% drop today and a 3.5% dividend .... and looking to be close to oversold, would you buy HCG today - or wait to see if there is some bad news we have not heard about?

Thanks.

Q: A fact that should help strengthen your confidence in HomeCapital management. Look at the LinkedIn profile of a new board member: Brenda Eprile. She has 12 years at the Ontario Securities Commission as Executive Director. Then, 11 years at PriceWaterHouse (partner). Certainly, she is a top choice for the board of a company involved in non-prime lending. I would also add that someone with a profile like this is careful with career moves, wouldn't want to end her career being associated with a fraudulent financial. She must have done some homework before joining.
https://www.linkedin.com/in/brenda-eprile-fcpa-icd-d-a9221b30

Q: What are your thoughts on the bear report? Seems to me they are making some compelling arguments. The loan loss provisions are extremely low when you would think they would be higher considering sub prime clients. Also, the deposits are 80% GICs... if there was something that spooked them they could see capital drying up. Let me know your thoughts on those two comments. Thanks

Q: It seems that every time Home Capital starts to move up a little there's another short attack to push it back down. I know you rate it quite highly, but is there really a future upside? I've held it for 2 or 3 years now, and am getting tired of waiting.

Is it better to replace it with another name? I already own FSZ, BNS and TD in financials. Thanks

Q: Tnc has pulled back each of the past two days on decent volumes. Do you know why?

Dennis

Q: Do you think Parkland with eventually be reclassified to consumer staples similar to couche-tard if they keep purchasing convenience stores? Would they have to divest their distribution business in order for this to happen?

Thanks,
Jason

Q: Time to purchase?

Q: Hi there, further to my earlier question - I saw on Market Call Tonight and that report was from the same short sellers that discussed CXR. Considering where CXR is today, should we be concerned about the future share price of HCG?

Thanks!

Q: Home Capital was once a 5%+ weighting in the Balanced Equity portfolio; now it is under 2%. Are you more inclined to add to the position here or cut and run, particularly since the P/F now has 23 positions and your stated preference is for 20? Also referencing the seeking alpha report is this a case of where there's smoke, there's fire?

Q: You mentioned in a previous answer that AVO would not get a premium valuation for a very long time. I was wondering if you can elaborate more on this? Is this because of the lowering of prices and also the dept increase?

From what I gather they are trying to increase their market share (which I think is currently 2%).

Thank You,
Andrew

Q: HCG getting clobbered again. Can't see any reason. Can you?

Sheldon