Mainstreet Equity Corp (MEQ.TO)

(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.

(Top Pick Apr 25/12, Up 30.12%)

(A Top Pick Feb 14/12. Up 52.22%.) Doesn’t own this one because it is just too small. Primarily apartments in Western Canada. Good management.

(Top Pick Jan 18/12, Up 44.44%)

(A Top Pick Nov 16/11. Up 65.47%.) Apartments. Great management. Still cheap relative to NAV.

Thinks there is a possibility of a dividend, but it will be relatively small. Very similar to Boardwalk (BEI.UN-T). They own apartments in Western Canada. CEO has really focused on developing properties so they tend to take a lot of the cash flow they generate, plow it back into the company and unlock a lot of value. NAV is north of $35 so feels there could be some potential upside.

(A Past Pick Aug 10/11. Up 88.81%.) Still likes. 2 story apartment buildings in Western Canada. Fantastic operation. Vacancy rates in the West are getting tighter so subsidies are getting lower. Trades at a discount to NAV and there is probably $4-$5 left out of this but will probably take 6 months to do it. No yield.

(Market Call Minute.) Wish that he could own, but too small for him. Buy at $31 or better.