We have no additions to or subtractions from the How They Rate coverage universe this month.

Our evaluation of the coverage universe is ongoing, as we streamline our focus to companies with realistic opportunities to build wealth for investors for the long term, keeping in mind too that part of the rationale for building a coverage universe is to provide context and comparison.

Advice Changes

Dream Office REIT (TSX: D-U, OTC: DRETF)–From Buy < 39 to Hold. The CE Portfolio Conservative Holding continues to put up solid if unspectacular financial and operating results. The unit price remains range-bound, even as Canadian REIT peers post solid recoveries in the aftermath of the “taper tantrum” selloff.

It’s not necessarily a question of business quality here, and the distribution remains well covered by funds from operations. We are, however, reviewing our position from the perspective of opportunity cost: Can we do better from a capital-appreciation perspective with another REIT that’s equally capable of generating solid income?

Lightstream Resources Ltd (TSX: LTS, OTC: LSTMF)–From Buy < 8 to Hold. Just three months ago we named it a Best Buy, for which we were rewarded with a pretty sharp six-week rally. But things fell apart for this debt-burdened turnaround play once oil prices weakened in late June due to geopolitical tensions and a retreat from risky assets.

Management has also cut its 2014 production forecast due to underwhelming results from key assets.

Northland Power Inc (TSX: NPI, OTC: NPIFF)–From Hold to Buy < 16. Second-quarter revenue grew by 36.6 percent to CAD169.9 million, while adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) were up 62.6 percent to CAD81.5 million.

Free cash flow was up 42.7 percent to CAD31.4 million. Dividends as a percentage of free cash flow declined to 93.3 percent from 108.1 percent in the second quarter of 2013, as management’s forecast that free cash flow would cover dividends by mid-2014 was realized.

Rating Changes

Medical Facilities Corp (TSX: DR, OTC: MFCSF)–From 3 to 5. The operator of private surgical centers in South Dakota, Oklahoma and Arkansas hasn’t cut its dividend in the past five years. Its revenues, relatively immune to economic ups and downs, are supported by an expanding base due to extension of health care benefits via Obamacare.