May 9, 2017 5:30 am eastern

Monday saw the S&P about unchanged and Toronto up 0.4%.

CRH Medical was down 4.9% on Toronto.

Warren Buffett held Berkshire’s annual meeting on Saturday. There is a livestream archive of the meeting available and it is well worth listening to. ¬†

Home Capital was up 17% yesterday after suspending its dividend. It has lost now 90% of its “high” interest savings account deposits in the past couple of weeks. Presumably virtually no one is now placing GIC money with them and those deposits (which are the great majority of its deposit base) will be pulled out as they mature. It will be interesting if any of those GICs are on automatic rollover since people would not likely want it rolled over and would be angry is they miss their chance to pull the GIC money out for that reason).

With the depositors having abandoned Home Capital it seems very likely the company will be sold. In theory they could simply continue to operate and just pay of the maturing GICs as mortgages mature and get paid back (transferred to other institutions on renewal). But I think a sale is more likely. Memories are often short but I think the Home capital brand has been poisoned in the minds of too many people and so a name change is needed. Again, hard to know what price might be given for the shares in a takeover. Most likely the buyer will get a very good bargain. With a strong buyer and a name change the borrowers and deposits would quickly return.