May 8, 2017 11:0 am eastern

I am traveling this week and was unable to post for a couple of days. Apologies. I am also behind on updates and plan to be active with updates soon. Meanwhile I am looking to slowly add to some positions such as Stantec and Canadian Western Bank and AutoCanada.

With the Canadian dollar down to about a one year low I am transferring some cash back from U.S. dollars to Canadian using the Norbert gambit and the DLR units as described previously. Search DLR and DLR.un and on this site and the previous comments can be found.

Home Capital has suspended its dividend. It remains a risky bet. I would not risk serious amounts on it but there is nothing wrong with placing a small (and small depends on your individual circumstances) bet here. The regulators will make sure depositors always get their money back (although possibly with a delay) but I don’t think regulators have any responsibility tp protect share owners or debt investors. Still, they would certainly rather not see losses to debt holders or a wipe out of equity since that would impair confidence in other companies. Most likely Home Capital will be bought out but it’s hard to say at what price. Depends how many buyers are interested.