RE: RE: RE: RE: RE: My opinion 1. interest rate is going to stay low at least in 2013, considering bad macro, low growth etc. This is good for defensive stocks, but for REITs recent cooling of canadian housing market is going to negate the positive effect of low interest rate. HLP.un is mostly US and there is housing boom going on in US, but that doesn't seem to be helping HLP.un share price.
2. Senior housing sector underperformed compared to canadian REIT industry which is going sideways right now. HLP,.un underperformed both.
3. HLP.un is recent IPO. Management seems to have close relationship with Mainstreet Asset Management like Petrobank and Petrobakken. External management, internal management is preferred in REITs.
4. management is always key to success. See what new management do to IIP.un's share price.
5. Company listing in TSX and not NY can be perceived as a red flag because almost all assets are in US. like someone else said, did they not meet requirement to list in US and therefore sought TSX?
6. REITs usually issue stocks around 52 week high and that brings down share price significantly to moving averages. But you're suppose to issue high and buyback low. If you're gonna dilute shareholder, at least get as much money as possible to pay down debt and fund growth. HLP.un is the only REIT i saw that is diluting shares at a far too low price. Why didn't they issue around $11.70 a while back?
7. There is thin analyst coverage and they are strong buy with around $12 price target. Much like Clearwater seafood, see what happened to their share price recently.
You are buying a high yielding US REIT that is underperforming its peers and industry in canada. Valuation is attractive but stock price is more volatile than other REITs. The recent run from $10.35 to $11 seems to be a short covering, not convicted buying on heavy volume.
Wong1, what was your point writing that last post? You seemed to be overly bullish on HLP.un and now you seem like you are being bearish on HLP.un. Please make up your mind what is your sentiment on HLP.un?