Home Capital Group Analysis & Outlook

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Hi guys,

I happen to own this stock and am unsure what research lead me to purchase it. I dont see it as part of your recommendations. I’m up approx 8% as we speak and am looking for some guidance for Hold, Sell or Buy? Thanks in advance and just want to say that I am very impressed and appreciative of the service you provide.

Jacob

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Asked on November 18, 2020 6:34 am
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Private answer

Interesting. Home Capital Group is one we've never looked at here. It's never appeared in our Top 20 either. So it seems like you've maybe got it from somewhere else.

The company reported earnings a week or so ago and did very, very well. This is a company that Warren Buffett essentially had to bail out a few years ago with a big purchase and a line of credit.

This stock is heavily dependent on a solid housing market. Low interest rates should bode well for them and if housing purchases keep up, it will benefit.

But, it's also one that would face some significant volatility if the housing market were to slow down. So, you really need to keep a close eye on this one.

In this environment (low interest rates, solid housing market) it would be a hold for me. But as I said, pay very close attention to it.

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Posted by Dan Kent
Answered on November 18, 2020 10:06 am