- First National Financial Corporation (FN)
- MCAN Mortgage Corporation (MKP)
- Timbercreek Financial Corp. (TF)
Thank-you
We continue to think FN is the best of the group, for its larger size, management, valuation, historical performance and prospects. Lower interest rates spur demand for mortgages, but there can be sentiment and valuation changes (negative) if investors fear a worse-than-average recession. That being said, FN and most of the others have handled past cycles well. Note it is a competitive, fairly low growth industry, so we would enter this sector for income only, and take any capital gains as a bonus. We would rank: FN, TF, MKP. We would be comfortable buying FN today for income.