What I’m Thinking About

Since our recent newsletter, more about investing has become clear.  In many ways we have no chance.  It is reported that for $100,000 US or $60,000 US a month on a 3-year contract, you get the President’s tweets just before the public does.  There is some debate about the amount of time the big guys have.  But let’s just say it’s a few seconds.  If you pay you get the tweet content before the public so you can buy or sell some equities.  The general public can’t buy these, just Hedge funds and the insiders.

If a bot is created to trade on that news, with Iran for example, news that means oil will go up or down is priceless to a hedge fund.  They can go long on the news if it will make the markets increase the price of oil or short a drop if peace is about to happen.  The public reacting to that news, creates the incredible hedge fund gains.  Or you could invest in companies that make military equipment or short those as well.  Many other companies could be impacted based on that news.  Markets will fluctuate no based on fundamentals but by advanced warning tweets.

The other day I tried to talk someone I respect to stop betting on options because of the impossibility of predicting markets.  He didn’t listen long enough to consider my points.  As a twenty year old I used to invest in put and call options.  It was a daily rush as I watched the fluctuations of the market.  Wins were discussed, losses rarely.  Overall I lost money as do most people who think they can predict things.

Now with this information on the preferential tweets for the money firms, we know that the game is fixed.  We are the suckers and don’t know it.  The risk is now taken out of the options game but only if you have that early warning.  We have no chance.

So what can we do?

Get serious about investing.  Protecting your hard-earned dollars.  Make sure that what is tweeted has no impact on your investments-or minimally at best.

This news means that for the next 3 years I need to be especially careful with how I invest.  I must introduce a new “Tweet Stink Test” To check if a company is vulnerable to pre-public disclosures from insiders.  That will be a challenge.

I know that when I provide an opinion for free, people are less likely to even register it long enough to understand or possibly research it some more.  That’s why, while I’ll keep writing the free version, on September 1, I will be launching The AskHank.money Review for serious investors.  There is more information at the end of this month’s letter.  In summary, I will provide my list of each month’s five best compounder companies, a deep dive into a company I’m considering, valuation observations, what I’m buying, holding or selling, annual report notes, what changed my mind, one thing I’m watching and Before You Decide.  Eventually, as I receive questions from readers, I will answer one or two as well.

So think about this, and see the offer at the end of this letter. As a founding member you can receive the Review for $99/year and renew at that fee for as long as you want.  Just $99 for you, while after September 2, $249/year.  The free version will continue to be delivered monthly.  The 40-day money back guarantee also means that if it’s not for you, just email me within 40 days and I’ll give you a full refund no questions asked.

 One Company Worth Watching

I took a look at Main Street Equity using our AskHank.money tool.  It’s a company, not a REIT, that invests in property in secondary markets.  It failed my Hank Stink Test.

Here’s why.

You could argue that everything is disclosed, but let’s dig a little deeper.  Why would the CEO collect commissions on real estate sales as an agent when the company buys or sells property?  Why would someone on the Board’s legal firm do their legal work?  They are either dumb and don’t see the optics problem or are arrogant and don’t care.  Both are walk-aways for me.

The details are in the Appendix, but here is the thing.  If you take even $1 personally from a public company for this type of non-arms-length arrangement, you fail my test.  Nothing illegal at all about it.  But it tells me a great deal about the culture of that company.

I know the company is highly supported by Bay Street and other experts.  I have no use for it.  Do you?

 An Observation

The media this morning was talking about the pre-tweet business and how it is no big deal, just more of the same where money managers get information that we joe’s don’t get.  Let’s just agree.

That tells us again how we have no chance if we are playing the game as suggested by investment “experts”.  But they need us to be sheep, for them to make money on their insider bets.  If we don’t play, they don’t win.  You can choose to, of course; I just don’t.

With tariffs, the war goes on.  Canada continues to think they can negotiate with someone who states that Canada has nothing that the US needs or wants.  Period.  End of story.  So let’s move on, tariff the oil, potash and power back and call it a day.  Yes we will suffer for a while in Canada, but maybe that is a good thing.  We are getting soft and lazy.  We need to tighten our belts in more ways than one.

 From the Annual Reports

You can see in my brief discussion of Main Street Equity I’m picky with the “at arms length” stuff.  That’s because I see it as an indicator of possible deeper problems.  I know most would disagree, but that’s how I operate.  Let that sit for a minute.  If someone steals even a few bucks from you, does that mean anything else?  Would you still trust them with your hard-earned investment dollars?

 This Week’s Reading

I’ve been watching the ocean a lot, the bees and wildflowers. Its actually working my brain. I’m festering many investment ideas.  I continue to read various quarterly reports of my companies as they come out, but during the nice weather I usually read less.  I’m writing a lot, but that is a different story.

 One Question to Consider

What is Your Enough?  I’ve talked about this before, but this is coming up more and more these days.  Maybe because I’ve been talking and writing about it, but I see it increasingly.  Your enough is the amount of investment income you need (generally thought of as income that comes in whether you show up for work or not) that lets you live the lifestyle you want, take care of all of your obligations and responsibilities, and have some left over to invest.

It’s the first question you need to ask yourself.  I only did it about 45 years ago, because an insurance salesman asked me how much I thought I needed to live or my family needed if something bad happened to me.  It was more of a take care of question, not a " You're Enough” one.  But still it got me thinking.  $3,000 a month was my answer.

Now, before you think that’s not much in the 1980s, $3,000 a month is like about $10,000 a month in buying power today.  Thanks, inflation.  So, I went through my working life thinking that $3,000 was enough, and it was.  Now, as a 70-year-old retired investor, it’s pretty much the same.  It’s $3,000 in 1980 money, or $10,000 a month today.  Now my monthly investment cash flow is greater than that; it doesn’t matter.  My number was reached some 15 years ago, even though I wasn’t consciously thinking about it.

With rental properties and other investments, I hit that number.  So, what is your Enough number, and what are you going to do when you hit it?

Remember it’s not one universal number.  Yours will be different from mine, just important to know.

Have an amazing month and see you in September with more ideas of how I see things, plus the exciting launch of The AskHank.money Review.  I’m nobody’s sucker, and you shouldn’t be either.

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Preliminary Topics in September Launch edition of The AskHank.money Review

Why this could be the death of AI engines.  Yes, I really did this.

My top 5 compounder stock ideas, some not in the Tech Industry.

Interest Rates should be rising; do I buy this ETF?

Launch of the Hank Tweet Stink Test, Insulating the Portfolio

And much more to come.  See you September 2.

Appendix

ASK HANK™ ONE-PAGE SUMMARY

Date: June 22, 2026

Company: Mainstreet Equity (MEQ)

Price: $168

Hank Score: 84/100

Revenue CAGR (3 yrs): 14.7%

NOI CAGR (3 yrs): 18.2%

FFO CAGR (3 yrs): 18.3%

FFO/Share CAGR: 18.3%

Property Value CAGR: 10.6%

Book Value Per Share: ~$194

P/B: 0.87x

FFO/Share: $10.31

Hank Cap Rate: 6.1%

Debt/Fair Value: 43%

Strengths:

- Below book value

- Strong FFO growth

- Excellent capital allocation

- Limited dilution

- Large apartment portfolio

Risks:

- Western Canada concentration

- Vacancy increases

- Immigration slowdown

- Related-party transactions require monitoring

Bottom Line:

Mainstreet remains a high-quality apartment compounder. The shares appear reasonably attractive at $168 and trade below estimated book value, though they are not at a deep-discount bargain level.

RELATED-PARTY / NON-ARM'S-LENGTH REVIEW

Mainstreet Equity Corp. (MEQ)

CEO: Navjeet (Bob) Dhillon

1. CEO BROKERAGE COMMISSIONS

Description:

The CEO is a licensed real estate broker and receives commissions at commercial rates on certain property transactions conducted by Mainstreet.

Important:

The audited filings state that, except in limited circumstances, these commissions are paid by the third-party seller rather than by Mainstreet itself.

The Board of Directors reduces the CEO's cash bonus by the amount of commissions received.

Commission History:

2023: $356,027

2024: $864,086

2025: $48,280

Assessment:

- Fully disclosed

- Compensation offset mechanism in place

- Potential conflict exists because CEO benefits from acquisitions

- No evidence of abuse identified

Hank Classification:

NEEDS MONITORING

--------------------------------------------------

2. WBA LAW LLP

Description:

Mainstreet paid legal and professional fees to WBA Law LLP.

Relationship:

A director and officer of Mainstreet is a Senior Associate at WBA Law LLP.

Legal Fees Paid:

2023: $457,831

2024: $414,791

2025: $686,193

Outstanding Balances:

2023: $Nil

2024: $Nil

2025: $Nil

Management Disclosure:

Management states that the fees approximate fair market value that would have been paid to an unrelated third-party law firm.

Assessment:

- Fully disclosed

- No outstanding receivables or unusual balances

- Amounts are modest relative to company size

- Creates appearance risk but no evidence of overcharging

Hank Classification:

NEEDS MONITORING

--------------------------------------------------

STINK TEST REVIEW

Specifically searched for:

- Insider-owned property management companies

- Insider-owned construction companies

- Landscaping contracts to insiders

- HVAC contracts to insiders

- Roofing contracts to insiders

- Paving contracts to insiders

- Consulting contracts to family members

- Related-party loans

- Insider mortgages

- Aircraft usage

- Executive personal expense reimbursements

- Undisclosed vendor arrangements

Result:

NONE IDENTIFIED IN THE AUDITED FILINGS REVIEWED.

--------------------------------------------------

HANK GOVERNANCE CONCLUSION

Current Stink Rating:

NEEDS MONITORING

Reason:

The disclosed non-arm's-length arrangements are:

- Transparent

- Longstanding

- Small relative to company size

- Explained in the audited filings

No evidence was identified of:

- Self-dealing

- Asset transfers

- Insider financing

- Related-party construction contracts

- Related-party property management contracts

Items to monitor going forward:

1. CEO brokerage commissions increasing materially.

2. WBA Law LLP fees increasing materially.

3. Appearance of insider-owned service providers.

4. Any new consulting agreements involving directors or family members.

5. Board independence as the company continues to be founder-led.

Current Governance Assessment:

Watch Carefully but No Material Governance Red Flags Identified.