Inovalis Real Estate Investment Trust T.INO.UN

If I owned this stock ....

[hawk35]

I'm not sure what I would do.  INO is already in breach of their debt covenants.  Loss of a major tenant next year will trigger all of their covenants.  If the recession comes, the banks will act to protect themselves.  Banks will demand the dividend be suspended and they will increase the interest rate they charge  This is what banks do.  Once upon a time, this was a good stock to own.  Not any more.

[flamingogold]

I heard the same with SRV and BBD. Risk is elevated but so is the reward  This is not a SPAC or startup tech. The industry, and on top Europe, is in turmoil. Recessions end. Wars end. Then comes prosperity. Banks know this.  

[Shirtlessnomore]

There are only a couple things you can do with a stock, hold it or sell it, so it's not really that difficult to figure out what you would do if you owned it, it sounds as if you dont so why worry about it, I'm on the fence whether to add to my modest position or just hold what I have but what i have I'm not selling, no guts no glory, see easy! Cheers.

[tailgator]

I added more yesterday, the market tends to overreact and I believe we are near the bottom, I would guess we jump back in the $4.00 range soon. At this price the divi is over 12%.

[tailgator]

Easy money

[Lyburnum]

Whoever bought under $3,50 earlier this month is raking it in. This was easily the single most under-priced security on the TSX: in european real-estate nevertheless. Go figure. I don`t want to call it arbritage, because nothing is without risk, but this is still stupidly undervalued right now. Simply off the risk-to-reward chart. I called 4.00 $ and I still think we`re heading back to 5.00 $ soon

[flamingogold]

I started a small position in the high $4's and bought in tranches as it dipped. It got very oversold, my lowest buy was on Nov. 8 for $3.41. I am now solidly in the green.

[flamingogold]

I hope to repeat with HOT.UN. Still trading at 2020 covid prices. A steal.

[flamingogold]

And my most recent buy was CSH.UN. Also trading at covid lows and paying you to wait.

[Lyburnum]

being in breach of a debt covenant happens all the time. a literal nothing-burger... for now. 

[Shirtlessnomore]

I would agree, I'm going to watch carefully again today and maybe pull the trigger on a few more. Cheers

[stockrook86]

These breaches of debt covenant, need to remember they are asset class mortgages that are none recourse. If a mortgage is in breach, the lenders don't have say over distributions coming from other properties. The Arcueil property was a signifcant chunk, about a third of the rent - but even if the slashed the distribution by a third it would be yielding 8% now. I'm not saying they are