Tricon Capital Group (TCN.TO)

RSI will tell you if it is over bought or oversold. It went up parabolically and these kinds of movements invariably pull back. It is back to the trend line which may signal it is at the end of the pullback.

11% of after-tax household income is now being used to service debt. This is the lowest it has been since 1983. This company is able to go in and buy single-family houses at around $100,000 without leverage and are able to get a yield of about 9%-10% and pass that back to shareholders through cash flow growth and dividend growth. Looking at US housing market in the next 2-3 years, this portfolio should see some pretty good capital appreciation and should push the NAV up to $9-$10. Dividend yield of 3.44%. EPS of $0.06.

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.

Quite active in the bay area of San Francisco. Have also been active in southern Florida and are looking to expand to the Carolinas and other areas in the US. A company that is doing one of the few arbitrages left in US real estate. They are able to buy US residential rental properties with no leverage and get a return on their capital in the high teens.

Have a fund that goes to the US to buy single-family homes which would participate in the US housing recovery. Also, have several funds outstanding that own commercial real estate in both Canada and the US. Just by closing some of these funds and getting the fee streams on, he expects their EBITDA to double over the next couple of years.

Own Canadian and US assets. Aggressively going into US residentials and buying tracts of housing that was in default. A very vibrant market in the South because if you have the funding, you are getting rental rates with a 9% yield unlevered. Likes management. Has more room to grow.

Exposure to the US rental market. Buys distressed homes, puts in a bit of capital and then rents it out for 13% gross yield. Likes it because it has great growth potential. Going from 700 now to 1000 homes by end of this year. 4% paid for you to wait. When housing prices pick up you will see a significant increase.