Mainstreet Equity Corp (MEQ.TO)

(Top Pick Nov 7/13, Up 25.10%) It is a well run company. They have rental assets in Calgary and Edmonton. They are rental residential properties. Lots of room for them to recapitalize at the right levels. There is no dividend, but they feel they can reinvest the cash flow at better returns.

(Top Pick Feb 11/14, Up 9.93%) Very little vacancy. Apartment buildings out west where there is net migration there, there are no rent controls and there are low vacancies. A lot of assets in Edmonton. Trades at a significant discount to its NAV.

(A Top Pick Nov 7/13. Up 26.76%.) Have some great assets in the Edmonton/Calgary area. These are rental properties, so there is lots of room to increase rents as it is a high growth area of the country. It will continue to see good growth and good increase in rents.

(Top Pick Oct 3/13, Up 36.79%) No dividend. There is a huge development in Edmonton that will really help them. He continues to like them. Their cost of funds has really gone down.

(Top Pick July 02/13, Up 15.84%) Two and 3 story apartment buildings in Western Canada. They don’t pay out anything, but just keep buying new properties. They do an incredible job.

This is a real estate company, not a REIT, and does not pay a dividend like REITs do. Management feels it is best to keep on reinvesting, as opposed to paying it out to shareholders. Had a nice little run in the last little while, and will continue to do well. Management buys its assets cheaply and re-develops them.

Great company. It franchises rental properties in Calgary and Edmonton. Did a great job of buying really cheap assets, renovating them and are now able to increase rents. There will be some refunding costs that will help the company out as they will be able to refund at lower levels. They own a lot of properties where he can see a lot of rent increases over the next little while. Also, made some asset purchases around the new stadium in Edmonton. Very cost effective company.

Has a terrific dynamic. Doesn’t pay a dividend so this has been treading water for about the last 6 months. Trading at a significant discount to its NAV of about 0.8 times and on a net asset value it should be trading at about $42-$43. In the great growth area of Edmonton, Calgary and Surrey BC. In a pocket where net migration is coming in where the rental market is so tight right now.

In Alberta and BC. Specialize in owning two-story apartments. They refurbish and re-rent them out. Not in competition with pension plans and large institutions, which are not interested in this stuff. Management is incredibly strong. Cash flow really drops to the end unit holder, the shareholder and this adds a lot of value. Trades at a discount to NAV. Rental market is incredibly tight where they are going. Does not pay a yield.

Not a REIT, so it doesn’t pay a dividend. Own apartment buildings, mostly in Western Canada in really strong growth areas. Doing some refinancing, which is going to help bring down the interest they are paying on their debt. Have a really great formula, where they buy apartments, renovate them and then rent them out. Rental increases are also coming through. Expect big growth is coming because they have a lot of apartments coming online over the next little while. That will add to their rental income.

A real estate company that owns apartment buildings in Western Canada. They buy apartment buildings at a discounted price and refurbish them. Have a low cost structure. Good management. Trades at a 15% discount to NAV. Doing some refinancing at a much lower interest rate. There is lots of room to increase rents. Doesn’t pay a yield but you are going to see an increase in price appreciation in the next little while. Feels it is worth around $40.

Trading at a discount to its NAV by about 25%. This company owns apartment buildings in Calgary, Edmonton, Saskatoon and in BC. They buy underperforming assets and redevelop them. Incredibly well run company. It doesn’t pay a dividend so will probably always trade at a discount to other REITs.

(Market Call Minute.) They are going to benefit from the intensification going out to Alberta. Likes this one.

Very positive on this and thinks it is worth much more. You are not getting any yield, but this is an apartment company that is mostly Western Canadian. They buy distressed apartments, re-tenant them, fix them up and then are be able to release them. During that time they are able to refinance them at better levels and take all of their equity out. Good for a 2-3-year hold. Very cheap and it could see $36-$38 in 12 months.

(Top Pick Jun 28/12, Up 21.77%) Was not affected by the floods. Thinks it trades very cheap. Smaller apartment buildings out west. Two story walk-ups. 7% of population out there was displaced and MEQ has space available for them. Trades at a discount to NAV. They get CMHC financing.