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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have 2 bonds that I believe are issued by home capital group:
HOME TR DEP NT 3.4% 10DC18 book value- $18,000 market value $16,065 -11.39%
HOME TR DEP NT2.35%24MY17 book value- $18,000 market value $17,460 -3.11%
I was planing to hold until maturity.
Should I be worried if I hold until maturity?
Any thoughts or advice?



Read Answer Asked by William on May 05, 2017
Q: Can I ask your opinion on these stocks. I have holdings and debating whether to cut or hang in and see where they go.
HCG bought at $8
GM bought at $35
MVN bought at .14
BBD bought at $1.90

Thank you for your advice!! Enjoying the membership so far!!

Read Answer Asked by Brigid on May 05, 2017
Q: I have owned HCG since 2000.This is a stock I thought I may never sell, but due to circumstances I have considered selling especially after your advise to get out. At what price would you sell as the stock can go up or down 15% in a day? I do not think putting a market price would by wise. I was considering selling at $8.00 per share but the next day the shares were down to about $6.75. Today they are trading at $7.75.
Read Answer Asked by Robert on May 03, 2017
Q: David Taylor was interviewed in the Globe and Mail today. He feels there is value in HCG. His optimism rests on the book value of the company, which he estimates is between $15 and $28 a share. Do you feel this is a reasonable estimate of book value? If so could there be a significant opportunity for brave and patient investors?
Read Answer Asked by Robert on May 03, 2017
Q: April 29/17 ? asked by david:

Jerome Haas of Lightwater Partners has been shorting HCG successfully for several years
using public info. He points out below that the loan originations were robust concurrently with the loan book decreasing, amongst others.

http://www.bnn.ca/investing/video/home-capital-short-seller-warns-on-the-whole-sector%7E1109205
Read Answer Asked by Russ on May 01, 2017
Q: The authorities knew if they dd anything home capital would have issues. I thought it would skate through with a fine and a few firings. Why bring down the whole company? Check the mortgages determine the default rate and then decide what to do.Announce action everyone deserts Home Capital gics and the company swirls into the bowl. Hoop insider probably knows the default rate ponies up the money.Please explain.
Read Answer Asked by ian on May 01, 2017
Q: Very interesting article. I don't know if you have read it. The World According to a Free-Range Short Seller With Nothing to Lose.

https://www.bloomberg.com/news/features/2017-02-09/the-world-according-to-free-range-short-seller-mark-cohodes

Publish if you wish.
Read Answer Asked by Peter on May 01, 2017
Q: i have sometimes been critical of 5i, i have never owned home capital but have read everything about hcg, i suggest your subscribers read reflections of a fund manager by michael mccloskey on hcg, this was/is a great company brought down by circumstance a lot of which were beyond their control, 5i did nothing wrong in having this stock in its portfolio or recommending it to its members.dave
Read Answer Asked by david on April 29, 2017
Q: Hello Peter,
With regards to the question posed to you for HCG by one of your members, i can relate to the frustration and disappointment that your team did not see it coming. However, at the same time, as investors, we have to realize that you can only advise based on the data you have available. Past data can be used as input to determine Future company or sector trends, but cannot guarantee success as no one can predict the future. I think it is best to focus on how we can avoid such stocks in the future given great metrics in the past (HCG had high ROE, decent PE etc ) and all of a sudden we start hearing issues with the company. Can you please shed light on what investors can watch for to avoid such pitfalls? I am using your service, watch BNN, read newspapers and other letters along with placing stop losses to minimize downside. From what i have seen, it is best to stick to decent paying dividend stocks like BCE, SLF, Banks, etc Growth stocks just seem to have too much hidden which comes to surface later or they are targets for short sellers. Thanks for your valuable input.
Read Answer Asked by umedali on April 28, 2017
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