A quick update on two purchases in my portfolio from last week.
- First purchase: I initiated a new position in FirstService Corp (FSV.TO) @ CAD $122.00. I have had my eye on FSV for about a year and finally pulled the trigger on a starter position. FSV is real estate operating company (REOC) company with operations in US & Canada (95/5 split). This company flies under the radar for different reasons, but is an excellent capital allocator; has a long runway of organic and acquisitive growth; dominant competitive position; market leader in a fragmented market; owner-operator management team, dividend grower (just a 0.65% starting yield though) … and the list goes on. The IR chartdeck has detailed info & can be found here.
- Second purchase: I added to my position in Equinox Gold (EQX.TO) @ CAD $7.88. I originally bought Equinox in May 2018. The company is chaired by the legendary Ross Beaty, who is a serial entrepreneur and has built some of the largest silver mining companies in world. His first company was the same name and Beaty has mentioned that he wants to bookend his career with two companies called Equinox, so this could possibly be his last endeavor. Equinox is a mid-tier gold producer (about 200-230K oz/yr), but has big ambitions to become a major producer (mostly via acquisitions). To date, Equinox has executed perfectly since my first purchase including: raising investments from Mubadala (the Abu Dhabi investment vehicle for UAE), consolidating shares 5:1, cross-listing on NYSE; graduating from TSX-V to TSX (effective today Nov 25, 2019). Management has communicated that next step is to get included in index funds (such as GDXJ and/or other funds) following the cross-listing and graduation to TSX, which should open up the company for more institutional funds to flow. Most companies struggle to execute on all these promises, but EQX has delivered and I continue to be bullish on this name.
What are your thoughts on these purchases. Share a comment below.
Full Disclosure: Long FSV, EQX. Our full list of holdings is available here.
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