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Gold/Mining/Energy : Home Capital Group (HCG.B-TSE)

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To: Gofer who wrote (2)	12/19/1998 11:43:00 PM
From: Clement	Read Replies (1) of 65

Gofer, I was thinking that no one was ever going to look into Home Capital or find this thread <g>. I like boring too -- usually means less risk -- tech stocks are a little too risky usually for me. I was a little worried myself about the possibility of a serious recession... but then that would sort of kill dfx as well, but I think hcg.b has less downside risk because their policy of first home mortgages and research/appraisals but it would curb their expansion. I think HCG could also lessen the blow since their market would grow in a recession -- they would just have to be a lot more careful about their lending practices. The recent additional Penfund debt financing (10M l-t financing) was definitely good news for them, I think if I remember correctly when I called them, that they have 140M available in borrowing room (I called 2-3 weeks ago) for additional mortgages. Another great thing about them is their ability to properly time their lendings and borrowings. As for coverage, as I understand it HSBC and Sprott still cover them but I can see what I can find out. There was an article in Canadian Business about HCG a month or two ago... I haven't seen anything really since. I'm not sure what CIBC and CT pay but it would be interesting to find out. I think I read somewhere that they might even do it for free because they might get the clients back later on when they don't need home capital (since they have higher base rates). I almost forgot, home capital intends on doing longer term loans (per CFO), of 2-3 years I think was the time frame (I can't find my notes at the moment), longer term loans have wider spreads. Currently most of their mortgages are for 1 year periods I think it was... Clement

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