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Strategies & Market Trends : Technical analysis for shorts & longs

SPY 688.98

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Jan 22 4:00 PM EST

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To: Cogito Ergo Sum who wrote (47664)	4/2/2012 6:01:59 PM
From: Johnny Canuck	Read Replies (3) of 69956

I am guessing CPG.TO is alright as long as they have access to cheap financial as you are essentially paying for future cashflow. Once access to cheap money dries up they they have to revert to more traditional models where the dividends need to be a percentage of actual EPS. The real estate MLP in the US like NLY have a similar model. Borrow money on the debt market at a cheap rate, invest in in somehting that cashflows at a higher rate and repeat. It works as long as you have access to cheap cash as no one questions your ability to re-finance. Once liquid dries up or cash become more expensive then look out.

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