Morguard Corp MRCBF

Risky as rates rise. Strong volume signals future panic

[mariorizzi]

Stock falling hard these last days on high volume. Somebody is liquidating. I can easily see this down below $100 as people start to panic about rising rates, and a slow recovery in office and retail.

It will be hard to refinance some of their underwater and empty malls. Right now this company is basically a zombie, and barely pays a dividend (which they might have to cut completely).

I had expected more from this company... I was wrong about its prospects.

Good luck

[slst]

You are missing the fact that they are already actively, refinancing/renewing debt at SUBSTANTIAL discounts to the prior 5 year's rates.  They have great properties. Real Estate is a long game....and these guys use bad times to spring to new highs.  They have done it before and I expect they will do it again. CEO is a mover and shaker. I am chasing one of their Subsidiaries MRT.un.

[pierrelebel]

mariorizzi wrote "...Somebody is liquidating...." That is correct.  Now, one should pay close attention to the actual trading.  Where is the selling coming from?  Typically RBC has been the seller for the last few weeks (presumably on behalf of a institutional client). Until yesterday their lowest selling price was $143.00 (heavy volume); today they lowered it to $142

[Northforce13]

Been watching the pull back too, felt a bit odd.  Checked vs some peers I'm familiar with, like CUF.UN and HR.UN... both peers have continued to rise a bit, while MRC hit a top and retreated.  If it had followed the peers I guess it should be +/- 160ish.   Feels like someone is selling, as alluded to in the other posts.   Haven't really dug into it deeply

[pierrelebel]

Northforce13 wrote: "...Feels like someone is selling..." Yes, one institution is selling its MRC holdings - through RBC. Based on the trading pattern of the last few weeks, the selling price has dropped from $143 to $142 and finally $141.  The number of shares sold by RBC recently far exceeds 100,000 and very few institutions hold that many MRC shares: Mackenzie 361,791 C.I. 227

[WEBuffettisbest]

Thanks for the info Peirre. I picked up some more today.

[Northforce13]

Very insightful comments @pierre...  tip of my hat to you.