Hudson's Bay Co. T.HBC

I'm going to hold on to my HBC shares

[talladega10]

Here are three of Canadas cheapest stocks. March 14, 2017 https://www.fool.ca/2017/03/14/investors-these-3-value-stocks-are-ridiculously-cheap/ Hudsons Bay Hudsons Bay Co. (TSX:HBC) is a mediocre retailer with a very attractive real estate arm attached. Lets talk a little about the retail part of the business first. HBC is struggling because its been posting somewhat lacklustre results. Same-store sales for the all-important holiday quarter were down 1.2%, mostly because of weakness from the companys outlet stores as well as its new European division. The decline was even worse if we factor in differences in exchange rates. The good news is, investors focused on the retail part of the business are driving shares down. As I type this, shares trade hands at less than $12 each. The real estate alone is worth $37 per share, at least according to a presentation at the 2016 annual meeting. Of course, the value of real estate means nothing without a way to extract the value of it off the balance sheet. HBC is working on two joint ventures that will do just that. One will consist of the companys Canadian properties, while the other will have American and European properties. The only question is when will these ventures become publicly traded, thereby unlocking value. When that happens, look for shares to head substantially higher. Morguard REIT Despite people saying Canadian housing could be in a bubble especially in Toronto there are some surprisingly cheap real estate investment trusts out there. Perhaps the cheapest is Morguard Real Estate Inv. (TSX:MRT.UN). Morguard has a current share price of $15.25, while the companys most recent reported book value was $25.66 per share. Thats a discount of more than 40%. Its the equivalent of paying 60 cents for each dollar of net assets. Most of the time a stock trading at such a discount has nonexistent earnings. Morguard is the exception. It delivered $1.87 per share in funds from operations in 2016, putting shares at just 8.2 times the equivalent of earnings. It easily earns enough to afford the 6.3% dividend. First National Financial First National Financial Corp. (TSX:FN) trades at just eight times trailing earnings, despite growing like a weed. The company, which is Canadas largest non-bank mortgage lender, has grown to the point where it has nearly $100 billion worth of mortgages on its books. Revenue grew 15% in 2016 with net income hitting $3.28 per share. Even if new mortgage rules take a bite out of new loan originations and with it, First Nationals top-line growth shares are still cheap enough that good things can happen to investors who get in at todays bargain prices. The company also pays a generous $0.14 per share monthly dividend good enough for a 6.3% yield. The bottom line Admittedly, all three of these companies have warts. HBC is struggling with lacklustre retail sales. Morguard has significant exposure to Alberta, which is struggling amid crude oils massive decline. And much of First Nationals mortgage volume comes from Toronto a market many declare is in a bubble. But you cant argue with these valuations. All three of these stocks are trading as though the worst-case scenario has already happened. Patient investors who load up on all three could one day be sitting on some significant capital gains.