As we head into the spring and summer months, we typically get a major slowdown in market activity. Volume dips as many people ignore the markets and come back in September.
It’s hard to say if this will be the case considering we’re amid a 7-month correction in the NASDAQ and the S&P 500. The TSX is treading water, relatively flat over this period. But make no mistake about it, the material and oil sectors are propping it up. Many Canadian stocks are undergoing a correction in price.
However, the end goal should be the same: to buy strong companies and hold them for the long term. Don’t let short-term market noise impact your investment decisions.
With that said, let’s dive into the e-mail. First, we will go over our new Bull List addition and some big changes to the platform. After that, we’ll dive into a new core position that I (Dan) bought this week. And finally, we’ve added the ability to access some new downloadable files! Let’s get started.
We’ve decided to add Automotive Properties REIT (TSE:APR.UN) to the Dividend Bull List
Before we get into Automotive Properties, we’d like to announce that we’ve moved back to a PDF style of report. For those who were around in the early stages of Stocktrades Premium members, you’ll likely remember that our reports used to be PDFs.
Many members were raising issues about our reports being difficult to digest on mobile, along with the information being not as organized as it could be.
These new PDF formats contain less, while saying more. And they should be easier to view on whichever screen size you prefer. We’ve also included a very popular request highlighting our degree of risk within each Bull List stock.
We will now have Defensive, Moderate, and High Risk ratings on all of our Bull List highlights, so members can get a better idea if a company fits within their risk tolerance. We won’t explain much more with the reports. It will be easier for you to just take a look.
As always, any feedback you have about the reports, or even potential improvements, feel free to relay them to us. There will be a transition period as we move the reports over. Some will still be in the legacy browser format, and some in the PDF format. But, over the coming months as the Bull List stocks report earnings, we will be transitioning every single report here at Premium to a PDF.
In terms of Automotive properties REIT, here is our thesis (which by the way, is a brand new section on the front end of the new reports):
Automotive Properties will continue to drive market-beating growth in a highly fragmented industry. Its position as the only automobile property consolidator in the country, and its ability to get first dibs on the purchase of any properties from Dilawri group automatically gives it a market advantage. The company’s triple net leases, where the tenant is required to perform all maintenance, plus its 11+ year average lease length will keep expenses low and produce reliable cashflow.
If the company can keep its pace of mid single-digit growth and trade at the same valuation, this would represent double-digit annual upside over the next half decade while providing a strong 5.5%~ distribution. Current hesitancy with investments in the automobile sector is providing an attractive entry point for this small-cap growth REIT. Although it is a higher risk REIT play, this option can still be appealing to both total return and income investors.
You can find this thesis and much more inside of our brand new reports. Just click the link below to read it.
Click here to read our report on Automotive Properties REIT
Of note, I (Dan) plan to buy this REIT after our 1 week waiting period following a highlight has passed. If you’re new to Stocktrades Premium, both Mat and I wait a minimum of 7 days before purchasing a highlighted stock. This is our way of avoiding any sort of conflict with our research.
I took a position in Foundational Stock Granite REIT
After some consolidation in the mid-to-low $90 range, I (Dan) felt now was the time to add a stock I’ve always wanted to own in Granite REIT. I will be using Granite and Automotive Properties to build out the real estate exposure of my portfolio, and with the addition of Granite, I now own 15 of our 21 Foundational Stocks at Premium.
I’ve held some cash over the last 3-4 months and this is a full position (around 3.5%) in Granite. I plan to use the remainder of my cash position to purchase a 2%~ allocation in Automotive Properties REIT.
Downloadable files on our website and Discord
We’ve given members the ability to download single page datasheets on our Foundational Stocks, all of our model portfolios, and all of our stock screeners. In particular, members have stated they have been utilizing our screeners a lot more since they became downloadable as an excel file.
The Foundational Stocks and model portfolio sheets will be updated at the beginning of every month, while the screeners will be updated every week as per usual.
You can find these downloads either in the downloads section of the Discord, or on the main dashboard once you log in.
