Xceed Mortgage Corp (XMC)
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Posted: Tuesday Apr 4 8:06:08PM 2006
There was some good coverage in the National Post today. Head line Xceeding expectations in mortgages. Postive article and future outlook. Thanks for this one Gee.
Posted: Thursday Mar 9 9:56:59PM 2006
Xceed Mortgage Corp. $10.10 (XMC:TSX) is one of a new breed of rapidly growing alternative residential mortgage lenders in Canada.
On March 9, 2006, Xceed Mortgage Announces Fiscal 2006 Record First-Quarter Net Income, Up 56.3%; First-Quarter Mortgage Fundings Up 26%
Basic and fully diluted earnings per share totaled $0.17 in the 2006 first quarter versus $0.11 a year earlier.
Mortgage fundings in the first quarter were $175.4 million, a gain of 26% from $139.2 million in the same period in 2005.
Posted: Tuesday Feb 21 6:44:35PM 2006
xmc and mkp are very different. mkp is a mortgage lender to low risk borrowers. this makes mkp a direct competor to the banks. mkp is in a similiar business to that of maple trust that will be taken out by bns. the tradional mortage business is very competive and the banks have seen their margins squeezed. one way to increase profits is by getting bigger and thereby gaining synergies (bns can use its existing infrastructure to process maple trust!s mortage portfolio and jobs will be cut.) mkp is also for the same reason a desirable takeover target but it wil not be an easy target as only about 25%of the besiness is public. for a takeover to occur the private controle ownership would have to agree. in the mean time the business and resulting dividend will continue to grow and you will be rewarded while you wait for good things to happen. xmc is desirable to the banks for another reason. it is en a higher risk but much less competive business . it is a very profitable business because of the lessor competion which allows lenders to charge much higher interest rates. futhermore because it is in an under served market the business of xmc is growing much faster then that of mkp. the possibility that zmc is an iminent takeout target is currently propelling it!s stock price. still holding xmc is more dangerous then holding mkp as if the houseing mar4ket were to falter sub prime lenders would see a rapid increase in mortage defaults that would put a damper on the stock price. having said all that i like and hold both stocks.
Posted: Tuesday Feb 21 10:32:24AM 2006
MKP trades at a lower multiple and pays higher yield to stay for the ride...financials can only get better in this environment! Good stuff everyone!
Posted: Tuesday Feb 21 10:13:18AM 2006
I think there are some others who my feel the same way, that a merger might take place. As activity and price seem to be increasing on this one steady. Thanks for the tip geezer. Not only does the stock price seem to be going up they also have been increasing their dividend.
Posted: Thursday Feb 16 6:26:44PM 2006
the big banks and lifco!s are awash with surplus capital.bank mergers will not come about soon. therefore the only way to grow in canada will be by making stradgetic aquistions.cibc has profited from it!s takeover of firstline mortgages some years ago. bns hopes to acheive similiar results from it!s aquistion of maple trust.keep in mind that the lending business is highly competive and potential takeover targets are few in number and fast declining with the two resent announced taktovers of vfc and maple trust.i concur that xmc has to be considered as a highly desirable target.i hold a considerable position in both vfc and xmc.i also like mkp which was mentioned on an earlier thread on this site.mkp will pay a handsome dividend until it!s taken out.
Posted: Thursday Feb 16 9:30:01AM 2006
You have to wonder if Xceed Mortgage, Carfinco, Home Capital, etc. will start garnering more attention and price appreciation in anticipation of further "takeovers/consolidation".