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Most Anticipated Earnings: NTR-T, ONEX-T and more Canadian Companies Reporting Earnings this Week (Feb 17-21)Weekly 52-Week Low (or 52-Week High): BAM-T, IAG-T, ONC-T, CCB-X and More 52-Week Highs and Lows (Feb 05-11)Most Anticipated Earnings: IAG-T, BDT-T and more Canadian Companies Reporting Earnings this Week (Nov 04-08)This summary was created by AI, based on 2 opinions in the last 12 months.
MCAN Mortgage Corp (MKP-T) is recognized as a leading entity in real estate finance, particularly noted for its sensitivity to interest rate fluctuations. Experts suggest that if interest rates rise, as observed in 2022, the company's performance could falter significantly; however, a decrease in rates could lead to better outcomes. There is an ongoing belief that the Bank of Canada may still have some room to maneuver with interest rates, which could present additional upside for the stock. Despite this potential, the stock has already rebounded to levels seen in 2021, leading to concerns about the risk/reward scenario at current prices. Analysts recommend a more attractive entry point around $16-17, positioning the stock as neutral to underweight at this time. Additionally, with a price-to-earnings ratio of 7x and a substantial dividend yield of 10%, the stock demonstrates solid profitability, although the current valuation may not be appealing for new investments.
Basically paying out all of its income as dividend, so you are not going to get growth, just dividend. Thinks the dividend is relatively safe as long as the Canadian housing market holds up. If you like growth in the sector, he likes Equity Financial (EQI-T). Their lending book growth was something like 178% last quarter.
Has a small short position as part of a basket that is against his biggest Long Equity Financial Holdings (EQI-T) (?) in that sector. He is short this because it is one of the few publicly traded mortgage companies originators that has some pretty significant Western Canadian exposure, which will act as a bit of a headwind. Trading at close to 2X BV, whereas the company that he likes better is trading below its BV. 7.8% dividend yield is safe as long as the real estate market in Canada holds up and interest rates stay low. At some point we are going to see residential real estate in Canada roll over, and certainly in areas that are going to be hit by the decline in energy.
Mortgage Investment Corporation (or a MIC) and to qualify, they have to pay out all their profits each year so they don’t retain any of their profits. You don’t get any growth in retained earnings. 7.9% yield is all you get. Really like buying a high-yield bond. He is shooting for more than 8% for his clients..
Shorting Canadian housing with Home Capital Group (HCG-T,) and Genworth MI Canada (MIC-T). Is a little bit early but he has seen the housing bubble build and believes it has now peaked and is now on the downside. If right and Canadian housing prices fall 20%-30% over the next 2 years, then these companies are not going to just be at risk of earnings but also at risk of solvency.
MCAN Mortgage Corp is a Canadian stock, trading under the symbol MKP-T on the Toronto Stock Exchange (MKP-CT). It is usually referred to as TSX:MKP or MKP-T
In the last year, 2 stock analysts published opinions about MKP-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for MCAN Mortgage Corp.
MCAN Mortgage Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for MCAN Mortgage Corp.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered MCAN Mortgage Corp In the last year. It is a trending stock that is worth watching.
On 2025-04-17, MCAN Mortgage Corp (MKP-T) stock closed at a price of $18.32.
Lending in real estate finance. Very interest-rate sensitive. If you think interest rates are going to rise, as in 2022, then it will underperform significantly. Will do better if rates fall. Thinks the BOC has a bit more to go on that, so there could be a bit more upside.
But the stock's already rallied back to highs of 2021, so risk/return not that attractive. Risk/return looks more interesting around $16-17. He'd call it neutral to underweight at this point.