Decided a few months ago to strip down to freebies and swim trunks and go away to the beach. Since then I lurk the income trusts looking for one that gets beaten down for whatever reasons and pick up a few until they recover. They pay 10-20% per year in monthly distributions as I wait, a hard deal to ignore. Some have had good gains from lows acquired due to bought share or convertible deals, institution exits or mergers. SHN.un is an extreme example as on July 24th in about half an hour courtesy on an institutional dump it went from $13 to $10 and then recovered and popped up to $14. It gives a 15% distribution per year. The latest is AE.un which just announced a merger with Ketch Energy and hinted they would do a share offer shortly. It promptly dropped near 20% to give a 17% distribution even though the merger is accumulative so the distribution should increase. Many are buying Ketch because it will yield 1.15 AE.un and an exploreco. Me, I'm content to average in on AE.un and collect the dividend until the merger goes through in October.
SUF.t,...learned my lesson last time. Not wanting to be squished over again. Even sold the freebies when she fell from $8 through $7. The BEE, black equalization campaign message has not been moderated over the last few years as far as I can tell,..it anything it is more demanding. The long term design seems clear,...new mines must go near majority black, and sooner or later existing ones too. Unions are getting stronger and are winning their demands. Costs are increasing and if the $U.S. does drop in relation to the rand, revenues will drop.
Then there is the double dip, given that it appears we have advanced our buying through several quarters past the present one, and the big boost that low interest rates gave us is running out of energy as there is little left to buy and debt is getting higher than average. Pull the pin on the booming housing market and keep losing jobs and voila,...double dip with record bankruptcies,...Dow and TSE 5000 here we come. Now that everyone has a new car, what will happen to PGM demand for the next year or two?
Still holding DMW.t and watching for news from Sierra Leone. Reports from friends living there claim roving armed gangs loot in the streets of Freetown at night, but the countryside is calm. The peacekeepers are pulling out. Many still have arms, but remain at present in small disorganized groups. The government seems stable for the moment, and mining companies are negotiating their way back onto their claims.
The great war in Central Africa also seems to be cooling down with peace talks going on between the main antagonists. Should bode well for DMW's Angolan claims and the supply company. |
