Opinions by Dennis Mitchell, CFA | StockChase
817
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office

ON STOCKCHASE SINCE Nov 2006

Sentry Select Capital Corp
The Exchange Tower130 King Street West, Suite 2850Toronto, ONM5X 1A4
T: 416-861-8729 F: 416-364-1197 info@sentryselect.com
http://www.sentryselect.com/


Opinions by Dennis Mitchell, CFA


Signal Opinion Expert Chart

2013-08-02

N/A
A Comment -- General Comments From an Expert 

Economy. The economic paces that we are dealing with today means lower interest rates for a longer time. Most equities right now are discounting a 3%-3.5% 10 year bond yield, which makes a lot of companies compelling value at these levels. Expects the Fed might push back their tapering to Q4 and possibly to Q1 if we keep getting weak job numbers like we did today.

Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $0.020
Owned: _N/A

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2013-08-02

COMMENT
A Comment -- General Comments From an Expert 

US Mortgage REITs. Dividends are not safe. As interest rates rise, hopefully the spread that they can invest in grows and the cash flow hopefully grows. The offsetting impact is that as interest rates rise, the BV of the offsetting assets that they own collapses. That is what has happened with a number of these mortgage REITs. He sold his holdings.

Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $0.020
Owned: No

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2013-08-02

N/A
A Comment -- General Comments From an Expert 

Relationship between the yield of 10 year Canadian government bonds and current REIT prices? Relationship between REITs and 10 year bond yields is inverse. As the 10 year bond yield goes up, REIT prices generally come down. He thinks the sector as a whole is pricing in 3% 10 year bond yield. The fact that we are at 2.4%-2.5% means that the sector has probably overcorrected.

Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $0.020
Owned: _N/A

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2013-08-02

BUY
Pure Industrial Real Estatetrust Trust (AAR.UN-T)

Operating in the mid-90% in occupancy. It was 99% but they bought some assets that had some vacancies. They are being very successful in leasing of these vacancies. 7% yield.

property mngmnt/investment
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $4.420
Owned: Yes

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2013-08-02

HOLD
Amica Mature Lifestyles (ACC-T (Delisted)

Growth in this company is going to slow a little. A lot of their growth has been through acquiring facilities, developing facilities and acquiring larger stakes in facilities they already own. This is going to slow down a little but they will continue to grow. Good management. Trading at or just below NAV. Dividend is safe and you can expect modest growth going forward. If you are willing to accept a little volatility than you could step into this. 4.9% dividend yield is safe.

REAL ESTATE
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $8.650
Owned: Yes

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2013-08-02

WAIT
American Capital Agency (AGNC-Q)

The question is, where is BV going to trough and can you buy it at a discount to BV. Right now the BV is around $25.50 so if you can buy it at a discount to that price, you should do pretty well. As the 10 year bond continues to back up, the BV is going to continue to come under pressure and it is a question as to whether they can maintain the dividend. He would wait to see who the next fed governor in the US is going to be.

Financial Services
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $22.590
Owned: No

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2013-08-02

STRONG BUY
American Tower (AMT-N)

A global tower company. Has owned for quite some time and is very happy with it. A little disappointed on their global side. Unhedged and the US$ has strengthened while foreign currencies have weakened. However, a strong US$ is probably good for them right now as they are investing outside of the US and into these countries and able to buy assets at a discount. Stock has dropped because a report came out that undermined several of the founding tenants of this company. Most of the report was factually incorrect and blatantly inflammatory. You are getting a great return if you can buy in the low $70s. 1.5% dividend yield is going to grow at about 10%-12% a year.

Telecommunications
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $70.500
Owned: Yes

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2013-08-02

DON'T BUY
Atlantic Power Corp. (ATP-T)

A diversified power name, gas, heating oil, coal. The problem with this company is that the average duration of their purchase agreements are sub-10 years and he likes to see greater than 10 years. Leverage is high and the payout is high. They cut the distribution earlier this year. Have a number of plants that are going to be re-contracted later this year and if some of these are recontracting at considerably lower levels, there could be another distribution cut.

electrical utilities
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $4.340
Owned: No

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2013-08-02

COMMENT
Artis Real Estate Investment Trust (AX.UN-T)

A diversified REIT. Entered into the US. A couple of headwinds have impacted this company. Moved a material amount of their balance sheet into variable rate debt so as the 10 year backed up on both sides of the border, people have expressed concern about what that means for their cost of capital. Have also been very, very acquisitive so they issued a lot of equity in the last couple of years. Probably worth $18-$19. 7.5% yield.

property mngmnt/investment
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $14.270
Owned: Unknown

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2013-08-02

TOP PICK
Brookfield Infrastucture Partners (BIP.UN-T)

Global utility/infrastructure name. Have assets in North America, South America, Europe and Asia. Also, into rail, storage and an Australian terminal. He sees them taking assets out of low single digit ROE investments and putting them into mid-teen ROE assets. Has delivered a 20% compound annual return over the last 5 years and grown its distribution by over 7% a year for the last 3 years. 4.67% yield.

INDUSTRIAL PRODUCTS
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $38.150
Owned: Yes

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2013-08-02

COMMENT
Brookfield Office Properties (BPO-T (Dead))

(Market Call Minute.) Buy this if you are going to be patient. There are ongoing concerns about leasing in downtown Manhattan.

property mngmnt/investment
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $17.440
Owned: Yes

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2013-08-02

BUY
Boston Properties (BXP-N)

(Market Call Minute.) Top 5 REIT globally.

Developers (Real Estate)
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $103.970
Owned: Yes

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2013-08-02

BUY
Canadian Apartment Properties (CAR.UN-T)

Very good name. Multi-residential. Some of the issues that have crept up recently is diversification initiatives that management has implemented. Bought some US assets and entered into long-term management agreements and there is speculation that they bought some assets in Ireland. All in all, the portfolio is rock solid. Have made tremendous progress in the last 5 years by bringing the payout ratio down and improving the quality of the assets and diversifying the portfolio. Probably worth $26-$27.

investment companies/funds
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $20.990
Owned: Yes

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2013-08-02

COMMENT
Choice Properties REIT (CHP.UN-T)

Brand new IPO that was spun out of Loblaw’s to hold the majority of their real estate. Better quality real estate than he anticipated, the payout ratio was excellent and the leverage was very low. Experienced management which he likes. Didn’t like some of the aspects of the strategic alliance agreement between Loblaw’s and this company. It limited some of their ability to create value and growth one forward. Also, in a rising interest rate environment, they are only going to generate 1.5% growth 5 years out from now.

REAL ESTATE
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $10.250
Owned: No

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2013-08-02

BUY
Crombie Real Estate Investment Trust (CRR.UN-T)

Tied to Sobey’s (SBY-T) so when Sobey’s acquired Safeway (SWY-N) it was telegraphed that those assets would make their way into Crombie. Probably worth about $17. Prefers others. 6.6% yield.

property mngmnt/investment
Dennis Mitchell, CFA

Executive Vice-President & Chief Investment Office, Sentry Select Capital Corp

Price: $13.400
Owned: No

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