Stockchase Opinions

Dennis Mitchell, CFA Homburg Invest Inc. HII.A-T COMMENT Aug 16, 2007

This is an interesting animal. They were the winning bidder for Alexis Nihon (AN.UN-T), which is commercial diversified in Quebec. They have since diversified into Europe as well and significant exposure to the Calgary market. For him, he wants to sit back and analyze further.
$5.250

Stock price when the opinion was issued

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DON'T BUY
What they owned in Canada is great but what they own in Europe is another matter. Have some concerns on the central and eastern European exposure. Not willing to take the risk.
BUY
Down because it is connected with real estate. Homes extremely high-class properties across Europe. Fabulous yield of 11.3% and can't see it being cut. Extraordinary competent management. Low profile and illiquid.
DON'T BUY
A commercial diversified name. Gives exposure to Alberta offices, assets in Montreal as well as Germany and some of the Baltic nations. He believes the dividend yield of 11% is fully covered by free cash flow. He has a hard time getting his head around the structure and didn't like some of the exposure they were getting out of the Baltic nations.
WEAK BUY
An entrepreneur with heavy debt and a heavy payout. Has done some interesting things in the US. Good portfolio in Europe. You'll get a very high yield on it at the moment so if you have some risk money it could be worthwhile.
BUY
Owns a lot of really good real estate in Calgary and Atlantic Canada but also a lot of assets in central and eastern Europe. Dividend of 11% should be safe. Payout ratio of 50%-60%.
PAST TOP PICK
(A Top Pick Aug 3/07. Down 33% excluding dividend.) The problem is both markets and the real estate. Wonderful yield at 13.5%. Long history of very strong dividend payments. Still a Hold.
HOLD
Has never been comfortable owning this name because of European assets in the Baltic. Good quality assets in Canada.
DON'T BUY
(Market Call Minute.) Changing their structure again. Look at them carefully when they merge their stocks.
HOLD
Doing some kind of restructuring where they will be bringing the A and B shares together. This one you Watch for a bit. Has aggressive debt.
COMMENT
Not p to date on this one but the founder is a very entrepreneurial guy. Definitely Caveat Emptor. You’ll have to take some risk levels.