Tricon Capital Group (TCN.TO)

An asset manager in real estate, selling land to home builders. They also offer single-family rentals. They are strong in the U.S. sunbelt, and just made a good acquisition. Strong demographics. (Analysts' price target: $12.95)

This trades very cheap but he is concerned about interest rates. He likes the stock at this price but would hedge it by shorting similar companies that are less cheap.

They had own it a couple of years ago. Not currently. They did a good job buying undervalued houses in the southeastern US after the financial crisis. They took profits. He thinks it is too late in the cycle for this name.

Three segments: single-family rental homes; buy large plots of land, develop and sell them; develop and rent luxury apartment buildings. They're exposed to strong-growth areas like the Sunbelt states (FLA, TX, CA) which is growing faster than the rest of the U.S. Continues to trade at a discount to its NAV--the market isn't paying attention to their success. (Analysts' price target $13.18)

They have a real estate investment function but he owns it for their single family homes. It is homes in the southern US and they just refinanced their debt. They are in the sweet spot. They are where there is job growth and that is where rents go up. (Analysts’ target: $13.18).

They have had some strong numbers and he likes the accretive nature of recent acquisitions. It has a complex story and this may lead into why the multiples are not as good as others.

He has a short on this. Poor momentum, high stock volatility. It scores one of the worst on price momentum. There is not a compelling value argument. He needs to see cash flows come back to the sector.

The main business is buying housing the US and renting them out. With rentals tight in the US market, it has done very well. It is looking to expand into building luxury units in big markets like Toronto. He owns it and would buy more here.

(A Top Pick Jan 17/17. Up 13%.) Still thinks this is underperforming from where it should. Nothing has fundamentally changed. Thinks the upcoming quarter will be very good.

The balance sheet is superb. Book value is $3.40. They have an ability to grow the company. It is on his watch list. If it gets near the book value it could be quite attractive.

Sold this a couple of years ago. Had been looking for a way to get exposure to US housing through a Canadian domiciled company, and this company totally filled that bill. Prefers to own US financials now. The value of US homes is starting to creep up, and a lot of properties are fairly valued now. Feels the easy money has been made.

Doesn't follow this actively. Ranks 405 in his overall dividend strategy, which has 700 stocks in his database. The company has reasonable sales growth and earnings seem to be revised upwards. 2.3% dividend yield.

It is smaller than the typical company he owns. He follows it and has a lot of respect for the company and the management. He would not sell it. They are executing very nicely. It is working off the sharp move higher from the past.

Had owned this about 2 years ago. Was looking for something on the TSX that had US exposure that would participate when the US housing market recovered. This one did and he sold his holdings at $10. US fundamentals are fine. They have a lot of assets in Arizona, Florida and in the US south. He had problems with the valuation and as to where it could go further on. Not a fan, but the fundamentals are in their favour. He would rather buy something that was cheap and had some valuation protection. 2.3% yield.

A Canadian company that is operating quite heavily in the US in ownership of residential properties for rental purposes. A nice company. Aggressive management.