Michael Simpson, CFA
Teranet Income Fund
TF.UN-T
PAST TOP PICK
Sep 19, 2008
(A Top Pick Nov 8/07. Up 17%.) Electronic land registry business and have a monopoly until 2017. Huge growth opportunity in health records where they have just started to scratch the surface. Trying to be acquired by Borealis.
(A Top Pick Dec 15/06. Up 15.3%.) A defensive play. Slower growth, but very stable. Has a monopoly on the property licensing in Ontario. Distribution is very safe.
(A Top Pick Nov 17/06. Note change.) When it converts over to a corporate structure, it will be able to maintain its level of distribution. A fabulous target for private equity.
Involved in Ontario land registration. Some concerns about slower real estate transactions but there are still a lot of transactions as mortgages renew. Diversifying into health care. Have a monopoly until 2017. 70% payout ratio.
Market is concerned about declines in transactions in Ontario but also register mortgage renewals, re-financings, etc. Developing a database management system for the Ontario hospital system. Distribution is safe and is a possible takeover target.
Quality company. Leveraged to Ontario real estate and will be impacted by a slowdown in this market. Borealis made an offer of $11, which has been reduced to $10.25 and will expire on Monday. Thinks the deal will go through.