Teal Linde - BNN - TOP PICK COLLIERS (CIGI TSX)
Last purchased on Oct. 19 at $122.65
Rising rates have impacted stock, bond and real estate markets. One way to take advantage of the selloff is to buy assets that are expected to bounce back once interest rates decline. However, a better way is to buy such assets that are also able to take advantage of the market downturn to become more valuable upon a recovery than they otherwise would have been. Such assets are often companies pursuing counter-cyclical growth strategies.
Also, very little value is being ascribed to Colliers’ brokerage business on a sum-of-the-parts basis at current share price levels. The combination of a management team capitalizing on weak market conditions, a major part of their business being assigned minimal value, and management’s long term track record of creating shareholder value points to an attractive entry point for Colliers.