MCAN Mortgage Corp T.MKP

Really Don't Get It

[cynic7206]

This stock seems to be completely under the radar.   Analyst don't follow it, etc.  I figure that the stock is not attractive in terms of equity appreciation.   But, the dividend history has been solid and I don't see any obvious weaknesses.  When they announced the special dividend the stock really didn't move much for a day or so.  I bought a few more at $18.17 - with a regular dividend of $.36 and a special dividend of $.97 at the end of March, it is like buying it for $16.84 and getting an 8.5% dividend thereafter on that cost base.

I don't see a lot of risk with company.  I am missing something?

[JayBanks]

They are considered a second tier mortgage lender and lend to people/companies that have below high end credit or higher leverage than the big banks are willing to lend to, most equate that to higher risk and because of that higher risk profile they are able to charge higher rates. To be fair this company does belong in a mid risk category and in a turbulent housing market this stock will

[cynic7206]

JayBanks, Thank you.  That was one of the most useful posts that I have ever seen on the Boards.  My investments relatively conservative accept by some mining stocks that I regret buying.  The challenge that I see now is that most stocks are so high that the probability is pretty high that they will be at the same value a year from now or lower.   I am investing for

[JayBanks]

I too bounce around with mining stocks, mostly as shorter term trades as a very small risky area where I see opportunities, but I have 2 long term plays. This is a good sector for high stable yeilds, but good growth is an issue. MKP - what I would call the best, it's very shareholder freindly which has caused investment/return growth outside of what the market does, usually close to the

[cynic7206]

JayBanks, Thanks for the sector assessment - it is very helpful.  I agree that the Mcan looks to be about the best in the Canadian sector.  I have NRZ and AGNC in the US - they pay very well also (9-10% dividends) but there is exchange risk.    I think the entire sector will likely get caught in a bit of yield squeeze but they should be OK.     The majority of

[JayBanks]

Your very welcome, it's good to know how companies manuver within the sector to try and decide which are the best for the individual, just because I'm not interested in something doesn't mean it won't work for someone else. I made a post on FN's board to see if I can get info from some people over there as doing that mini round up put it in my head to do a deeper dive as it

[cynic7206]

JayBanks, In general most bullboard are actually that - not too much useful information. Re: MAL, I used to work there.  I wouldn't recommend them.  Their 4 Qtr should be awful.  Their price should be falling but they have a share buyback program.   In the longer run they should be do well but I not sure when that we will be.  I got a few hundred shares but I

[JayBanks]

I'm very interested in your views on a few of these companies and my thoughts on these plays, I dunno if I'm out to lunch sometimes on my viewpoints/understandings. Sorry other readers, we discussed the useful info on MKP, we are working on other things now, but you can drop in on it. lol   MAL board here is pretty useless from what a I've gone through, I seen this a a very

[cynic7206]

JayBanks, Re: MAL - I left the company several years ago.  I did very well with the stock.  The problem they have right now is that their results will take a few quarters to improve.  Given their results they should have cut their dividend.   If you willing to hold on to the stock for 2 or 3 years you should do well.  I just think they will drop after the Q4 results