Buyers Rush IN on STRONG BUY REC. 4 out of 5 analysts covering Innvest are giving this REIT a STRONG BUY recommendation with the 5th a HOLD. Investors of every size shape and form are rushing in to capitalize on the ridiculously low stock price as 500,000 units traded hands today with the stock price close repeating yesterday's record high recovery price of $5.46 and today setting another new record recovery high trade evaluation of 5.55$. Investors are anxious to find solid, stable, and blue-chip-like investments paying off with regular monthly cash flow. Analysts see the change from a stapled reit to a pure taxable trust as only a small "blip" in the long-range profile of this stock with no material impact of any consequence likely to be felt by investors going forward. This trend has been consistent since the beginning of this new year and I expect to see it continue on as the stock price returns to pre-Flaherty edict levels concerning stapled reits.
I expect 4th Q 2011 and 1st Q 2012 results to be consistent with historical industry seasonal impacts related to the usual drop-off in travel during these periods. So don't fret over lower winter results. The hotel industry usually picks up in the late 2nd Q and has its best period in the 3rd Q and early 4th. I believe that current buyers understand the seasonality of this industry. I would hope to see an increase in the monthly dividend some time in the 3rd Q of 2013 once the new tax regime has had an opportunity to reflect operating results and once we are finally over the recession and the concomitant micro and macro impacts which we are all aware of. With 2015 approaching and the Pan Am Games in Toronto, watch for a flurry of construction work in the City and all around the GTA. This should draw workers into the area who will need accommodation during the construction and finishing phases of this project.