Video Summary: Insiders buy into the Trump economy at ECN Capital

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Here is the video summary of the August 15th INK Morning report where insiders are continuing to buy ECN Capital ( ECN) shares despite it outperforming the S&P 500 by 28% over the past year.

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Script (check against delivery):

Over the past year, ECN Capital has been a profitable way to gain exposure to the Donald Trump’s US economy.

The company's three main areas of focus are originating and managing for partners unsecured prime consumer loans, loans to purchase manufactured homes, and advising on and structuring credit portfolios. So far that strategy is paying off with the stock up 28.2% over the past year, while the S&P 500 is flat.

Q2 earnings were an adjusted US$.07 per share versus US$0.05 the year before. Helping to drive the results was an 18% increase in total loan originations for the versus Q2 2018. Meanwhile, managed and advisory portfolios increased 14.2% year over year.  

CEO Steven Hudson says they continue to see great opportunity in each of their three operating businesses in the second half of 2019 and beyond. Given the optimism, it is encouraging to see continued insider buying.

It also good to see insider buying considering ECN’s shelf prospectus filing for up to C$2 million in securities yesterday. The filing covers not only the potential to issue Common Shares, but also other types of securities including Preferred Shares. Such a filing does not mean a financing is imminent and we note that last week the company announced its intention to renew its share buyback program. We have not seen any new share purchases yet, but we will be keeping our eyes open. 

Our report which is not a recommendation to buy or sell securities is available through INKResearch.com or the Canadian Insider Club.  Good luck friends and thanks for listening!

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