Opinions
Paul Gardner, CFA
Timbercreek Financial
TF-T
TOP PICK
Mar 31, 2015
Stock price when the opinion was issued
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$300 million market cap. A very stable mezzanine financed building. They lend money for short-term real estate loans and are tight lending the money. If there is no loan to be done, there is no yield. If they do a loan, they just flow the income back to you. A very consistent business. Putting this into a TFS account is a wonderful vehicle. Yield of about 9%.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A decent company and the stock price is decently cheap. The dividend has not been changed since being lowered in 2016. Shares have not passed 2011 levels. An income investment. Unlock Premium - Try 5i Free
Pool of money that trades on the TSX and is lent out short-term to the real estate industry. They charge a premium on that. Like owning just the mortgage department of a bank. Payout of over 8% is fully taxable income, not a dividend. Avoid the tax by putting it in your RRSP. Risk/reward is good. One loan didn't go well, with the result that the company is left with a building to sell. Because of this, combined with market nerves about small things, trades at a discount to NAV of $8.40. He'll trade around the NAV. Stock doesn't grow, it just distributes income.
Last year was hard on this company with interest rates having moved way up so quickly. It is in the short term mortgage market business. Property prices are coming down. It still pays a 9% dividend and is trading at a 10% discount to its hard cash value. It is in their income portfolio.
(A Top Pick Feb 11/14. Down 7.12%.) This is a mortgage investment Corp. Has been hurt because they had prepayment issues last year. Has heard that insiders have been aggressive buyers of the stock. A good asset class to own. Yield of 9.33%.