PAST TOP PICK
(A Top Pick Jan 12/21, Up 13%) A proxy for the reopening of the economy. You also get exposure to Apple. Still upside.
DON'T BUY
Best of them all in the senior living space. There are always issues either with property, regulation, demographics, over supply, or the pandemic. Drop may present a decent buying opportunity. Difficult to value, as it's a communal living space. He finds much easier investments elsewhere.
BUY ON WEAKNESS
The space is expensive. A great long-term and free cashflow story. Great position to steal market share as they've spent many millions on 5G. He'd buy at a better entry point.
SELL
If you own it, definitely sell. An offer of $18.17 USD is not bad, considering this asset class will be struggling. He doesn't think the offer will go higher. It's time to let go.
BUY
Can charge more for assets because of the SCC decision, so they'll be more highly regarded. It's fine.
COMMENT
Preferred shares. For preferreds, assuming they're resets, it's more about the state of the interest rate market. If we think rates are going up, preferreds will do better. You have to make a call that the BoC and the Fed will raise rates sooner rather than later. You know they won't raise rates for the next 9 months, but it could go as long as 2-3 years. Or rates could drop.
DON'T BUY
Got out because risk/return was not in his favour. His concern was over-distribution, quality of assets, liquidity issues because it's smaller. Still struggling to grow. Doesn't fit his themes right now. Yield is 7.1%.
TOP PICK
Inflation indexed bonds. Inflation will run hot for at least another 12-18 months. Fees are incredibly low, high liquidity. Benefits from inflation increases. Can't know what's going to happen long term, but you will benefit in the short term from this type of investment. Yield is 1.6%.
TOP PICK
A recovery story. Best in class, best assets. Theme of stay at home will wane. There's a more hybrid solution, and its stable of smaller tech and healthcare tenants will benefit. Trades at a 15% discount to NAV. Yield is 4.04%. (Analysts’ price target is $45.23)
TOP PICK
Digital and e-commerce transition. Cheap relative to its space and on an absolute basis. Having Shoppers as an asset is so powerful. Yield is 1.9%. (Analysts’ price target is $75.33)