Some stocks mimic the volatility of the market quite closely, while others demonstrate muted, exagerrated or uncorrelated price movements. Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). However, Warren Buffett said ‘volatility is far from synonymous with risk’ in his 2014 letter to investors. So, while useful, beta is not the only metric to consider. To use beta as an investor, you must first understand that the overall market has a beta of one. A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=" View our latest analysis for Killam Apartment Real Estate Investment Trust ” data-reactid=”30″> View our latest analysis for Killam Apartment Real Estate Investment Trust
What we can learn from KMP.UN’s beta value
Given that it has a beta of 0.87, we can surmise that the Killam Apartment Real Estate Investment Trust share price has not been strongly impacted by broader market volatility (over the last 5 years). This means that — if history is a guide — buying the stock would reduce the impact of overall market volatility in many portfolios (depending on the beta of the portfolio, of course). Many would argue that beta is useful in position sizing, but fundamental metrics such as revenue and earnings are more important overall. You can see Killam Apartment Real Estate Investment Trust’s revenue and earnings in the image below.
How does KMP.UN’s size impact its beta?
Killam Apartment Real Estate Investment Trust is a small company, but not tiny and little known. It has a market capitalisation of CA$1.8b, which means it would be on the radar of intstitutional investors. Small companies often have a high beta value, but they can be heavily influenced by company-specific events. This might explain why this stock has a low beta.
What this means for you:
One potential advantage of owning low beta stocks like Killam Apartment Real Estate Investment Trust is that your overall portfolio won’t be too sensitive to overall market movements. However, this can be a blessing or a curse, depending on what’s happening in the broader market. In order to fully understand whether KMP.UN is a good investment for you, we also need to consider important company-specific fundamentals such as Killam Apartment Real Estate Investment Trust’s financial health and performance track record. I urge you to continue your research by taking a look at the following:
- Financial Health: Are KMP.UN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Past Track Record: Has KMP.UN been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of KMP.UN’s historicals for more clarity.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.” data-reactid=”53″>If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
Frontenac Mortgage Investment Corporation Completes its Transition as a Corporate Issuer – Canada NewsWire
SHARBOT LAKE, ON, May 31, 2020 Frontenac Mortgage Investment Corporation (“FMIC“) announced today that it had obtained a receipt for its initial long form prospectus on Form 41-101F1, dated May 26, 2020 (the “Corporate Prospectus“) relating to the continuous monthly offering of its common shares. The receipt for the Corporate Prospectus constitutes the completion of FMIC’s transition (the “Transition“) from being an investment fund, as it had been since its initial investment fund prospectus in 2005, to being a corporate issuer. The Transition, including the reasons for it, is described in the Corporate Prospectus and has been disclosed in FMIC’s prospectuses since 2014. In connection with the Transition FMIC’s investment fund prospectus dated January 21, 2019, as amended, was allowed to lapse. FMIC will continue to offer its common shares on a continuous monthly basis at $30.00 per share under the Corporate Prospectus in essentially the same manner as it has historically offered its common shares under its previous investment fund prospectuses.
FMIC is a non–bank lender that operates as a ‘mortgage investment corporation’ as such term is defined under the Income Tax Act (Canada). FMIC’s primary investment objective is the preservation of shareholders’ equity while providing shareholders with a stable stream of dividends from the interest income generated by FMIC’s mortgage portfolio of short–term residential first mortgages in the province of Ontario. FMIC’s common shares may be purchased pursuant to the Corporate Prospectus through registered portfolio managers and investment dealers. The common shares of FMIC carry annual redemption rights and are not listed on an exchange. Further information is available on FMIC’s website at www.robinsonsgroup.com/frontenac.
SOURCE Frontenac Mortgage Investment Corporation
For further information: Frontenac Mortgage Investment Corporation, Matthew Robinson, Chief Executive Officer, 1-877-279-2116, [email protected]
EDITORIAL: Inuit investment in mining needed – Nunavut News
The Hope Bay gold mine in Nunavut was recently acquired by Chinese gold mining company Shandong Gold Mining.
As Canada’s resource industry is rocked by the fallout from Covid-19, the foreign mining firm has scooped up Hope Bay from TMAC Resources for what is likely a good price, despite suspicious timing, creating what Tom Hoefer, executive director NWT and Nunavut Chamber of Mines, has called “good news for everyone.”
Not everyone is happy though as the purchase has generated a national debate around Arctic sovereignty and Canada’s dealings with China.
Geo-politics authors, federal MPs and a former CSIS director have been weighing in on the issue and recently so has Rylund Johnson, a Yellowknife MLA in the NWT’s legislative assembly.
“China has no interest in seeing our rare earth metals developed or any mine compete with their own if it comes to that … If Canada had real economic development corporations and gave the North’s Indigenous development corporations meaningful capital, then we could actually own some of our own resources as a country,” stated Johnson online in response to the article “Chinese ownership of Nunavut’s resources stokes unease,” in the May 25 Nunavut News.
Johnson, we believe, has hit the nail on the head.
What mining in the North in general lacks is proper Inuit investment.
Mining represents a huge opportunity for Inuit to have a stake in the development happening on their land. If the federal government had read the tea leaves and positioned itself to support Inuit-owned development corporations, there could have been an alternative to selling to the opportunistic Chinese-government-backed SD Gold.
Like it or not, Canada is a resource nation but it currently seems entirely unable or unwilling to properly position itself to manage these resources.
As it was clear with the Wet’suwet’en disaster in British Columbia, colonial governments are not effectively dealing with Indigenous governments. While there was a clear communication failure on the federal government’s end, there is also a persisting lack of clarity on resource development throughout the country.
National unity is at an all time low and it is not hard to see that resource development is at the heart of the issue.
From pipelines being blocked in B.C. to separatist flirtations in Alberta over oil to the lack of exploration in the territories, Canada and its politicians seem unable to strike a balance between environmental responsibility and developing a national economy.
This fog of confusion has completely shaken investor confidence in Canada and now the mining community can’t help but be relieved that at least someone is willing to invest in Canada’s North, even if it is from a company controlled by an authoritarian communist dictatorship.
There is risk on both ends of this deal: the risk of a deal not happening at all and all those jobs for Northerners going belly-up and the risk of a bad global actor getting its hooks into Canada’s resources and Arctic sovereignty.
It seems the North wasn’t left with much choice.
France Plans Investment Fund for Aerospace Sector, Le Maire Says – BNNBloomberg.ca
France will announce a stimulus plan for the French aerospace industry in the next week to 10 days as the country’s economy deals with the fallout of the coronavirus pandemic, Finance Minister Bruno Le Maire said in an interview on broadcaster France 3 on Sunday.
Measures will include the creation of an investment fund to help small and medium-sized companies in the sector, with Le Maire saying he wants France’s four large aerospace companies, Thales SA, Safran SA , Airbus SE and Dassault Aviation SA, “to be present” in the fund.
France’s aerospace plan would follow an 8 billion-euro ($8.9 billion) stimulus package for the country’s struggling car industry announced on Tuesday, which includes 5 billion euros in state-backed loans for Renault. The aerospace industry is France’s biggest exporter, with foreign sales valued at 64.2 billion euros in 2019, according to customs statistics.
Le Maire said Renault’s survival is in play. He said the carmaker needs to become more competitive and have a long-term strategy that includes electric vehicles.
Aid for the tourism, hotel and restaurant industry will be maintained until at least the end of June, according to Le Maire. He said France could still have “a magnificent French tourism season.”
Le Maire said he’s not interested in the job of prime minister, and would prefer to continue his “mission” at the Economy and Finance Ministry of overhauling France’s economy.
©2020 Bloomberg L.P.
Asia cautious as U.S. riots weigh on S&P futures – Reuters
Ex-Bloc Quebecois leader, longtime Quebec politician Michel Gauthier dead at 70 – battlefordsNOW
Canada approaches 91K coronavirus cases; sharp rise in daily deaths due to glitch – Globalnews.ca
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