RE:RE:RE:RE:RE:RE:The reason why this might be a value trap....Here is my opinion, MOST of these reits are in fact value traps, many are simply bought for the monthly income which is great if that's what you are after, but beyond that they offer little to nothing in capital gain, pick out a handful and look at 10 year charts, they are all flatlined or close to it, and they are all also undervalued all thru that 10 years, there are definitely exceptions but the biggest problem here as well as a number of other reits is the yeild pales in comparison to others, MR.UN has returned to within a buck or so of pre flu but yeilds 7% ish, other stuff like PRV.UN has returned to previous levels almost but dividend much closer to pre flu and is actually pro active right now, the list goes on and you can tell which income stocks are back to normal yeilds just by their charts. The problem here is why buy this? Yeah the price is cheap but if you are buying it for income which is what these are primarily designed for why bother? Put your money elsewhere, hell the CPX, FN, RCI, utilities, telecom etc are all paying this yeild and have far more future growth potential, we dont know how long these morons are going to play this game? They are doing a sh1t job. Where are the insider buys? What does that say about confidence when they arent buying half price shares? This dividend needs to double for starters, that's the only catalyst here imo. This got to 7.30 and they slashed the dividend in half again. And now here we are. Cheers
slst wrote:
All valid points. Healthy discussion. Ultimately, they are still generating good cash flow. Annualized at over $1.00 per share. So only slightly less than pre covid.
They just dont seem to promote the stock, beyond those boring reports.
Market usually takes all that into account. I am stil hoping this is NOT a value trap, rather it IS deep value that is not fully appreciated. If I am wrong...Ouch...as I do have a meangful position.
If they even double their distribution to 4cents, thats an 8% yeild. Remember this basket of Canadian properties paid 8 cents per month for a decade or so. Even with Sears and Target leaving. Hopefully its not a slow grind back up, and we get a nice pop from the Shorts.