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

To: Scott Mc who wrote (3480)	6/17/2002 6:15:18 PM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

the issue details determine exercise price, date and other details, there are no set ratios. ------ You are correct that there are no set ratios for the rights conversion. But what is set by the nature of the rights is that as I have said the before, unitholders trust Value $X ,and the immediate after issue of rights unitholders trust value where $X = $Y + $Z is equal. $X = $X. The unitholder is no worse off or no better immediately after the issue. That will change however once the the two, the rights and units begin trading on their own and in their own ways. ------- What I do not know, is how does Sentry differ from any other closed end fund?? (besides holding trusts and issuing monthly distributions). Other closed end funds issue rights and or warrant from time to time and pay dividends. ------- Just a peice of advice concerning debate. It is usually not enough to just "SAY" closed end funds issue rights. One should provide an example of one such. So it can be verified by all. ------------- ------- On a bit of a side note is too the issue of "ECONOMIES OF SCALE" This was touched on a bit when you criticized my example where I said that P bought 1000 units first then bought again another 5000 units at the lows. Your silliness reply of giving an example yourself of him buying 500000000 units at the lows. A trust of trusts like SDT or EIT where net assets are in the hundreds of millions and where many unitholders DRIP is able to do just as I illustrated and even much more as in my example. Now compare that to some average joe trust investor. He can not possibley hope to do the same thing. Can he really hold himself a dozen to two dozen trusts in his own portfolio and take advantage of the lows when they present themselves (thereby enhancing his returns - lowering his cost base) to the same extent as can a trust of trusts with many unitholders DRIPPING their monthly distributions????? """"HARDLY""""". Hence another advantage/benefit to holding a trust of trusts. And another nail in the coffin of the myth that joe average can skip the extra fees ,do it on his own and make a superior return ------------ As far as doing a rights issue and then buying back shares, I didn't note different time frame, and I'm all for closed end funds buying back their shares when they trade under NAV, wish more would do it...