This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional.
This stock has great value as the book value is high and the Graham price is greater than the actual price. The Graham price is from Benjamin Graham and is the price you should be paying for a value-type stock investment. The cash flow is also good and it is supporting a not bad increase in the dividend payment.
However, it seems to have no growth-type qualities. It is not only the revenue growth, which is low, but also the Return on Equity (ROE) value. In 2007, the ROE was 2.3%. The last 4 year average is .8%. For Canadians, the average annual rate of return is low. It is much better in US$. This has to do with the relative value of Canadian and US currency over the last few years.
This company was only separated from Magna International in 2003, so it is hard to get a fix on how well it will do. Also, there is a reorganization proposal that is supposed to release some of the value stored in this stock to the current policyholders. This might be a good idea.
For the moment, I am going to continue to hold this stock and review my position on it after the meeting to be held near the end July.
See my spreadsheet at http://www.spbrunner.com/stocks/mim.htm. See my website at http://www.spbrunner.com/stocks.html.
This is a real estate company that currently leases, manages and develops a predominantly industrial rental portfolio. Almost all of its income-producing properties are leased to Magna and its subsidiaries. It also holds 53% equity and 95% voting interest in Magna Entertainment Corp (MEC.A). Its site is at www.midevelopments.com.
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