BUY

They are trying, from humble beginnings, to become a blue chip REIT. They want to maintain proper debt levels, proper governance, proper structure and proper payout. Disadvantage is that they are very small right now and in order to grow through acquisitions, they are somewhat stuck while they wait for the equity markets to recover. Until then, you’re getting a safe yield. Good management team. 8.6% yield.

BUY

This one holds only 4 assets in France and Germany. This is an opportunity to pick up some strong yield, while you are waiting for a European recovery. He sees more and more large investors, such as pension funds, going into Europe and buying up office buildings. Company is small and illiquid so it can be more volatile. Yield of 9% is sustainable. Average daily volume is only 14,000 so if buying, don’t put in a market order.

BUY

Currently this is a Corporation, but will become a REIT soon. They recently took over Keyreit, which was a REIT where he did not like management but was crazy about the assets. Has always liked Plazacorp because of their great development experience. This gives you development upside, nice dividend that will be increased when they become a REIT, plus they have continuously grown their dividend. Yield of 5%.

BUY ON WEAKNESS

All of its assets are in Germany and you have a juicy yield. Not all of their assets are of the quality that he likes to see but they have been culling this slowly. He was very pleased with their new acquisitions. He would look for a little bit of a pull back, so that you can get in cheaper. Yield of 8%.

COMMENT

Have been showing 7% organic growth, which is fantastic. Very well managed. They are in Calgary, Montréal, Toronto, Vancouver and Winnipeg. A long-term Hold at any time. 4.1% yield.

COMMENT

Great company. Were very early in buying single-family homes in the US and renting them out. That is not their core business, so when it is time to sell, they sell. Have also been buying up tracts of land in key spots in the US and doing housing development. Recently hired a well regarded CFO. Have a lot of institutional investors going along with them. 3.4% yield.

COMMENT

Gives you exposure to the apartment market. In an inflationary environment, they have the tendency to appreciate with that because they can adjust their rents quickly. There are others that he prefers such as Killam Properties (KMP-T) and Cap REIT (CAR.UN-T). 8.5% yield. (See Top Picks.)

COMMENT

This REIT pays more than it should. However, there is a comfort level for many investors in that it has a large weight by Smart Centers. The amount of overpayment is not enough that it will be changed but he prefers not to invest in this type of the vehicle. However, you get close to the retail market whose numbers are improving. 9.2% yield.

COMMENT

Believes they are the best operators in the seniors housing sector. Have great quality properties. If you feel the housing market in Canada is topping and going to roll over, seniors housing correlates to this. Cheap. 5.3% yield.

N/A

Markets. We are finally seeing a welcome shift from people focusing on a little bit more than fundamentals. This is most evident between specific stocks, say S&P 500 and the TSX 300 for example. Correlations are spreading out, which is an indication that investors are actually looking at stock by stock and company by company. We are by no means clear of any macro situation, especially in the coming months right now, which traditionally are pretty tough. September correction that everybody always expects may have happened a little bit earlier in August. Germany’s election gave some clarity. Obama wants to take a diplomatic approach for the rest of his term. Some of the numbers out of China and the euro zone are getting quite a bit better.

COMMENT

Takes existing well-known drugs and go to the FDA to ameliorate shortcomings with that particular drug. E.G. they take a good drug and find a way to eliminate some side effects. The real story here is a drug called Absorica, an acne drug, which has just taken off both sides of the border. Stock got hammered last Thursday because they were faced with another company’s application to do the same thing. With a name like this, you have to be very careful because of its reliance on one name. Valeant Pharmaceuticals (VRX-T) would be a much better choice.

COMMENT

Very involved in Western-based activities. One of their biggest and most successful areas is Britco (?), portable housing and camp setups for mining, etc. Has done very well. 65% payout ratio. Stock has been drifting downwards for the past 6-7 months, but this is an absolutely great entry point for the name. 7.7% yield.

BUY

Investing in technology ETFs. Should these be split into things such as semiconductors and software or consolidated into one equal weighted ETF such as 1stTr NASD 100 Tech? When you buy a NASDAQ ETF, you are not buying all technology. Also, if it is not equal weight, you are going to be buying a ton of Apple (AAPL-Q), etc. The equal weight one you mentioned would be the route he would go. He also likes iShares xUS Info Tech (AXIT-N), which is a great way to play technology globally without being shoved into all the big US technology names.

DON'T BUY

The problem with this whole space is that it is a 90% political situation right now. Very difficult to know what to do when prices are being set by various monopolies and regions. This needs to confirm a trend up before doing anything.

DON'T BUY

The whole bond space has been hurt substantially since May 22nd, when rates started creeping up. Prefers iShares Emerging Market Div (DVYE-N) but he got stopped out of this. He would take a look at getting back into this one. On the ZEF, he would want to know how much of it is corporate versus government, preferring to be a little bit more on the corporate side.