TCN-T   2013-01-31 TOP PICK Andy Nasr

11% of after-tax household income is now being used to service debt. This is the lowest it has been since 1983. This company is able to go in and buy single-family houses at around $100,000 without leverage and are able to get a yield of about 9%-10% and pass that back to shareholders through cash flow growth and dividend growth. Looking at US housing market in the next 2-3 years, this portfolio should see some pretty good capital appreciation and should push the NAV up to $9-$10. Dividend yield of 3.44%. EPS of $0.06.

 

Price:
$7.000
Subject:
CANADIAN DIVIDEND & REITS
Bias:
OPTIMISTIC
Owned:
Yes