RE:FC continues to lag
jelijo612 wrote:
What's up with these guys? The market booms, they fall back
What are you baseing your expectations on?
FC - 14.83 - Yeild 6.31% - Average 5 year Yeild 7.4% - Price is actually rather over bought
TF - 9.43 - Yeild 7.31% - Average 5 year Yeild 7.3% - Right on the Average price
MKP - 17.23 - Yeild 7.89% - Average 5 year Yeild 8.5% - Over bought on Average
BRE - 17.50 - Yeild 7.71% - Average 5 year Yeild 8.8% - Over bought on Average
AI - 14.17 - Yeild 6.35% - Average 5 year Yeild 7.4% - Over bought on Average
*not including special divs
Every company in this niche sector has recovered and has run well up past thier historical averages, Either the dividends need to grow into the current prices or prices will fall from here. Currently FC is actually the most overbought in the sector and deserves a pull back. FC and AI are known to give specials quite regularly so they will usually trade at a premium to others and their yields including expected specials is closer to 7%.
MKP is the best priced in the sector, but as an owner I would say avoid for atleast a few months because they are completing a rights offering with current share holders so the number are gonna bounce around, if your interested, the shares may dip into the low $16s in a few weeks as the offering price is $15.65 and will pass middle of next month, the offering is about 5% dilutive, so it's going to throw the fundamental numbers of the company off on the upcoming report until the fall earnings.
Personally I wouldn't buy anything in the sector unless I get 8% payout for my risk of funding 2nd tier mortgages. In Canada this is a pretty safe sector, but with the government altering mortgage rules and prices at insane levels in several of the largest markets, I want a reward for the risk that a dark time may come. (That said I don't expect it)