Q: Hi, I know you like DIR ,I have invested in DIR. for an around 3 years in an rrsp and am down a little but has a good dividend.
Would like to switch out to something a little more growth oriented and was looking at MEQ.
First thing would you have any thoughts on whether this is a good switch.
Second would you have a any of your own suggestions to replace or reduce DIR.UN.
Thanks
Would like to switch out to something a little more growth oriented and was looking at MEQ.
First thing would you have any thoughts on whether this is a good switch.
Second would you have a any of your own suggestions to replace or reduce DIR.UN.
Thanks
5i Research Answer:
We still like DIR.UN, and it may be a good place to hide out in during the current market malaise. MEQ is decent, but there is essentially no income (yield 0.08%) and it too has real estate exposure. At 18X earnings, it is priced OK. Shares are up 4% in the past year. It has shown faster growth, but as a real estate company it is cyclical and we would not necessarily call it a 'growth' company. Its fortunes will depend on real estate prices and activity. Most in the sector would not be high growth. Still, if one wants to stay in real estate, is OK with no income, and wants a least some growth potential, we would be fine with MEQ. This is not to indicate that we dislike DIR right now, however.