Stockchase Opinions

Jeffrey F. Olin TransGlobe Apartment REIT TGA.UN-T BUY Dec 21, 2011

Apartments. Have gone through some transition in the last year by internalizing management. Management is competent. Thinks the distribution is sustainable.
$11.480

Stock price when the opinion was issued

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(A Top Pick Feb 4/11. Up 17.53%.) Apartments. Low multiple of 15. Have had some bad publicity about infrastructure stuff. Reasonably high yield.
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National apartment landlord trading at around $12 and is worth about $12.50-$13. Good management. If you are comfortable with an 8% all in total return you can find here, but he would wait for a little bit of a pullback.
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Most of their apartments are in trouble Ontario with some in Alberta. Payout ratio is about 95%. 6.25% yield.
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(Market Call Minute.) Have a lot of renovation stuff to do.
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Going private and whether you should sell at what the stated price is, he hasn’t had a chance to study it.
COMMENT
There is a bid to buy the shares at $14.25. Fair value was estimated at $13.25-$15.25. Thinks it unlikely that a higher bid will be made.
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