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Bullboard - Stock Discussion Forum MCAN Mortgage Corp T.MKP

Alternate Symbol(s):  MAMTF

MCAN Mortgage Corporation is a Canada-based loan company and mortgage investment corporation. Its objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including residential mortgages, residential construction, non-residential construction and commercial loans, as well as other types of securities, loans, and real estate investments.... see more

TSX:MKP - Post Discussion

MCAN Mortgage Corp > Good and Bad News
View:
Post by JayBanks on Feb 07, 2022 5:48am

Good and Bad News

So which would you like first?


Lets start Bad:

MKP has lost status as a marginable security effective end of this month. I don't know why this has happened, might be something to do with Volume, Market Cap or anouther metric, we have seen a drop in volume and price since the last release of this list (altho the rights offer was after the November 4th announcement so that should have added to the Market Cap), I don't remember when it was added previously but I don't think it was that long ago. Really this only effects people holding it in a taxable margin account and those who use margin which I'm sure isn't that many. Unfortunately I was making a plan of adding a chunk for the margin and payout in my taxable margin account as I currently hold in my TFSA, I still may and just accept it as a payout machine. But due to this news we may see some higher than average volume late in the month which will coincide with earnings.

The Good news:

Management somewhat hinted a few months ago at dividend increase and maybe a special payout in the near future, well with the quarterly coming end of the month, we are in a window for news reports related to that which would more than out weigh the negative effects talked about above. I expect a solid earnings announcement, but I'm not gonna get ahead of myself and say that I'm expecting both or either of these things. We are still 3 cents below a previous payout level. If a special is announced it would be interesting to see if it's cash or more shares again.

Just thought I'd throw out a couple things that may create some increased volume over the next few weeks.

Comment by GoldenArm on Feb 09, 2022 1:08pm
I would have said that the PE multiple on this stock is the bad news. With cheap money available and rents going up in price this is a seriously undervalued stock. If they do increase dividend that may put some life in the stock. The volume of shares traded is low and that isn't because of anything else other than it is a Canadian stock and that people are VERY RELUCTANT to sell their shares. ...more  
Comment by JayBanks on Feb 10, 2022 9:07pm
  Considering the 5 year average dividend yeild is 8.3% and we are currently trading in the 7.6% area, we are more towards the idea of overvalued in my opinion (if an increase is announced that idea would be altered). I was getting interested in making a purchase in mid 17s which I still thought was a bit much on the pre-earnings pricing, but I was looking forward as management has been ...more  
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