True North Apartment REIT (TN.UN.TO)

A big strategies for companies like this is to continue to grow through acquisition. Acquisition is on the premise of them having a cost of capital advantage over other apartment REITs. At the stock price of $3-$4, cost of capital is not great enough to give them outstanding advantage over other apartment REITs. Doesn’t think this will be stagnant forever and they will be up to make acquisitions. Very skilled team. Would prefer others.

Relatively new. Apartments. This management team has a record of making it work. His suggestion, though, is to go somewhere else because there will be a lot of issues. The market may be getting near the top and you have to go for quality.

(Market Call Minute.) Would be inclined to sell if it gets closer to $4.50. Diversified apartment play.

Thinks that this is a growth by acquisition story and that there will be more acquisitions in the next few months. As they do that accretively, the stock should move. 6.5% yield.

Almost every other REIT has gone quite a bit higher. This is only been in existence a couple of months. Montréal and Toronto apartments. 6.5% yield. He can see $5.

New REIT. Have a lot of their portfolio in Québec. Given what these people have done in the past, you are probably going to make money with them but, with the costs of the product it is going to take several quarters before the issue works out. Did a 1 for 8 reverse stock split, (This was not a split, but was actually part of the REIT conversion from Huan (?) Capital Corp.) which is normally considered the kiss of death. 6.6% dividend yield. (BNN quoted a yield of 12%. Both of these items were corrected on Market Call Tonight's Aug 9th program. Bill)