Posted by & filed under Company Analysis, Growth & Valuation, Personal Finance.

Description: As Home Capital Group Inc. was having its worst week ever, at least one person in the investment world was smiling. Marc Cohodes, a short seller who has been described as a “scourge of Wall Street” has for more than three years bet on the implosion of the Toronto-based alternative mortgage lender.

Source: FinancialPost.com – video report

Date: April 28, 2017

Link: http://business.financialpost.com/news/fp-street/home-capital-bleeds-another-291-million-in-withdrawals-in-just-one-day

Questions for discussion:

  • Explain the reasons for the collapse in stock value.
  • Who do you believe is at fault?
  • What was the critical indication to Marc Cohodes to short the stock?
  • Do you think this stock can recover?

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