MCAN Mortgage Corp (MKP.TO)

A momentum play, near all time high. Not his kind of company though.

Well run company. Bought a lot of mortgage portfolios last year and did very well, but will not quite as well this year. They are like an income trust in that they have to pay out 100% of their profits. Won’t get a huge growth in the company. Usually have a top-up dividend in the 4th quarter. Solid company.

A good solid buy. They bought distressed portfolios. Had 6 or 7 profitable quarters that were exaggeratedly good. It’s at a good level now.

Mortgages. This is in a unique category in the Canadian tax code and have to dividend out 100% of their profits but are not taxed as income trust. Their status does not change in 2011. 8.2% dividend yield, which will probably be topped up at the end of the year.