UNPRICED ·Independent Equity Research
Deep-dive research on overlooked companies, special situations and market mispricings.
Workspace GroupLSE:WKPReal Estate
An asset-backed turnaround with a dividend attached. The dividend may fall before it grows, and the London portfolio beneath it is what makes the outcome asymmetric.
Workspace's dividend may be cut again. Beneath it sit London buildings priced near half of NTA, and a turnaround that has to earn its capital.
Expected Total Return
+73.7%
Expected Annualized Total Return
+11.7%
Horizon
5 years
Cogeco CommunicationsTSX:CCACommunication Services
The US cable business is genuinely deteriorating and the market is right to worry about it. The question is whether that worry has been extrapolated into a dividend it does not yet threaten.
Why nowAn unusually high starting yield on a dividend that costs about 30% of free cash flow, on a business whose consolidated quality is weaker than its dividend economics.
Yield at publication
6.72%
Base sustainable DPS growth
5.0–6.0%
Dividend CAGR FY2016–FY2026
9.7%
Stratus PropertiesOTC Pink Limited:STRSReal Estate
Shareholders approved the wind-down, took the first $5 a share, and then lost the quarterly reports. What is left is a Texas property portfolio with real price evidence behind it.
Expected Total Return
+51.5%
Expected Annualized Return
+24.2%
Estimated Duration
about 3 years