Opinions
Andy Nasr
Tricon Capital Group
TCN-T
BUY
Dec 18, 2012
Stock price when the opinion was issued
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes what they have done to set up the company well. Potential remains good. Likes the management and markets are starting to notice TCN. It is up 50% in the past year. Well positioned in the US market and their asset portfolio looks good. First pick in the Canadian real estate sector. Unlock Premium - Try 5i Free
The market has punished it too much. It is in the residential rental sector in the U.S., especially in the sun belt. The rentals are affordable and appeal especially to the 35 to 44 year old demographic who want to rent good homes rather than buy. The share price is at a 40% discount to the total value of all its homes. Good opportunities should emerge.
NAV is about $6.50-$6.75. Raised money and invested in single-family US homes. Passing the yield on through to investors. You are really playing an economic recovery in the US. As employment improves and housing affordability improves, house prices will go up and the company will benefit. What they are doing is interesting but at some point in time they will get crowded out. Likes the business model.