Q: Could you please kindly comment on MEQ's latest Q1 report in addition to the following:
1. what might be a good price entry point if you think this might be suitable for a small position in a TFSA?
2. do you have concerns with the liquidity of the stock?
3. is there much insider ownership and have they been buying lately?
4. does this company have a habit of issuing stock?
5. does this company have a lot of debt?
1. what might be a good price entry point if you think this might be suitable for a small position in a TFSA?
2. do you have concerns with the liquidity of the stock?
3. is there much insider ownership and have they been buying lately?
4. does this company have a habit of issuing stock?
5. does this company have a lot of debt?
5i Research Answer:
We think $150 would be a good price which is where it was prior to its recent run. We would be comfortable owning it in a TFSA for real estate exposure. Liquidity is an issue. But, one could still easily buy 1,000 shares which would be likely more than most TFSA values these days. For a non-trader without a giant account, we would not see liquidity as a big issue. Insiders own 49% and have done very minor buying (net) in the last six months. Total share count has declined from 10.5M to 9.3M in the past decade. Debt is about $1.5B against $3B in assets. For a real estate company, we would not consider this 'a lot'.