RE:RE:RE:RE:RE:RE:RE:RE:TD's Upgrading to ACTION LIST BUY from Buy; Q2/21 Results WDMBell wrote: What is the difference between MEQ and BEI? Personally I feel BEI has more going for it than MEQ, however MEQ has risen far past pre-pandemic levels as have all other aparment REITs. Given this BEI is either way undervalued or MEQ is far over valued.
MEQ is trading at about 20x FFO of 2021. Fully valued but could run to $120 based on expected performance.
BEI is undervalued because of its concentrated exposure to Alberta. While the unicorn farming crowd are afraid of Alberta, I'd say it's the reason to buy BEI. Energy sector recovery underway. Oil will be $80+ as long as world doesn't tank into deep recession. Alberta is the supplier of clean and ethical energy for US and Canada, soon to be shipping to LNG to Asia.
I'd take BEI over MEQ as a value seeker.
People afraid of commodity exposure will go with the diversified big names rather than BEI. Said it a few months ago, the portfolio managers will pile back into BEI when they realize that oil and gas are in short supply and Alberta's economy is long into a 5yr+ recovery.
See ya'll at $60