MENU

Introducing Storage Vault Canada Inc.

I’m always looking for the next great opportunity. The next under-covered gem to look at is Storage Vault Canada Inc. (TSXV:SVI). Although it’s listed on the venture exchange, the company has a market capitalization no less than $650 million.

In the business of self-storage, anyone who has ever needed to use a storage facility understands what a hassle it is to show up with a truck and unpack it into the small locker as tightly as possible.

Storage Vault Canada delivers a huge container right into your driveway that you can fill at your leisure with the belongings you want to store. Once completed, you simply contact the company, and the container is picked up from your driveway and put into storage.

While this offering is a godsend to some, investors purchasing shares of the company have the opportunity to invest in an outfit with consistent, reoccurring revenues and expenses. With any luck, the demand for self-storage will continue to increase, and with the increased demand will come an increase in rates.

Translation: investors will be rewarded.

Investors looking at this company as an opportunity need to ask themselves: “What am I giving (paying) and what am I getting?”

In this case, investors will receive a defensive company with a beta of 0.80 and an excellent track record of profitable growth. Currently, the dividend is no better than a penny per year, translating to an annual yield of less than 1%. It would seem the company is still growing at a significant rate and retaining all earnings in order to do so. Dividend investors may not like this name.

While the storage business often offers the opportunity to purchase securities that trade very close to tangible book value and a juicy dividend as icing on the cake, Storage Vault Canada seems to do none of these things.

Currently, shares of the company trade at four times tangible book value and do not offer an above-average dividend yield. Investors are clearly paying for potential with the hope the company will be able to deliver growth in earnings and dividends over the long term.

While this company has seen a clear rise in the share price over the past year, the truth is, investors need to consider this stock in comparison to the others available in the open market. Storage Vault Canada makes it to the top of my watch list. That’s about it.

1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway

The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.

For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.

While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.

Fool contributor Ryan Goldsman has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.