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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: bill who wrote (1655)	10/22/2001 11:12:27 AM
From: stan_hughes	Respond to of 11633

bill - Welcome to the club - NCF, PWI, VKR, AY, etc., they've all done it to their unitholders of late, like eating their own young. Heck, NCF was trying to do it a third time in less than year a few weeks back. Now here's the part I really like - they also tip off their friends beforehand, who then double up short before the new issue announcement. That way, they can help support the unit price post-announcement by buying back in their short positions at the issue price while everyone waits for the deal to clear approvals and then close. Whatever units they can't or don't need to buy back, they simply are allotted from the new issue. Voila, their buddies are magically flat again, except with a buck or two extra per share in their pockets. Afterwards, everybody takes turns buying each other lunch for a few months until the next deal comes along. Now, some people would say that it seems kind of bizarre that entities whose raison d'etre is to generate cash should need to - hold onto your hats, now - keep raising cash selling new units. Could it be that they are paying out too much monthly in order to maintain the masquerade as high yielding enterprises? No, that couldn't be it, of course not. After all, 25% plus yields grow on trees, right? The TSE and OSC condone these abusive and oppressive trading practices, which goes a long way toward explaining why I have no respect for those bodies. I would suggest you just consider this rape and pillage exercise as giving back part of that high yield. And Bill, just before I go - you will no doubt soon be hearing from those "who believe" that it's a necessary evil and an okay thing for the trusts to issue new units using bought deals on terms favorable to insiders but prejudicial to your position. While you listen to their explanations, think about that feeling you currently have that you've just been robbed, and then tell me which is more real.