HCG is a leading alternative mortgage lender. A cheap stock, but one that suffered from a pretty big repuational hit a few years ago when it got caught up in a pretty massive mortgage scandal. It has since spent the past couple of years rebuilding that reputation and seems to be well on its way. It also suspended the dividend at that time but it has yet to re-instated it.
From a valuation perspective - looks strong. Trading at only 8 times forward earnings and a 26% discount to historical averages. I'd say its a value stock with decent upside. We prefer other alternative lenders liek EQB which have a much stronger history of execution, provide dividend growth and have higher growth prospects, but HCG is a decent option here.
Mat