TSX:APR.UN - Post by User
Post by
Dartmam32on Jun 15, 2019 5:02pm
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Post# 29829327
My Thoughts
My ThoughtsI was not expecting another financing at this time considering that the last big financing just came in October of last year. Apr has nearly doubled its market cap in less than a year. That is an amazing rate of growth. In October they raised money at $10.80 and now at $10.45. The financing price does not worry me. I am a long term investor and most bought deal financings are done at a discount since the brokerage houses have to resell these shares to their clients. I use these financing to purchase more cheap shares. Don`t expect the stock to fall like it did after the last financing down to the 8.50 level. That was an unusual situation with the markets dropping in December as everyone expected rate hikes. The opposite is happening now with rates expected to drop. After these type of deals are announced there is a lot of initial selling because the brokers can get back in and recieve 5 to 8 percent back depending on the finders fee. So in Apr`s case the brokers would get the shares at 10.45 and get back 5, 6, 7 or 8 cents back. Soon after Apr will move up in price and that will make it easy for the brokers to place the shares with their clients.
I feel that the management of apr is doing a great job in how they are growing the company. They are buying some top quality real estate. Over the next few years they will have a steady pipeline of properties that will continue to have yearly rent increases. As apr`s free cash flow continues to grow they will be making enough money to start buying properties without having to do more financing. Thats were the real growth will kick in. So hang on. Go for the ride over the next few years and you will be rewarded with a nice safe investment that will give you dividends of more than 7% and potential for lots of growth. Don`t be scarred of the 30 or 40 cent price drop. That is just part of the game to get apr the 80 million dollars to buy the properties. Use this opportunity to make yourself and your family some money.