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

To: Scott Mc who wrote (3578)	6/26/2002 7:07:17 PM
From: bill	Read Replies (3) \| Respond to of 11633

When there is a puzzlement, the thing to do is ask the thread. i just got in, checked my account and every single trust unit was down except erf.un which was up 14 cents. Some of the others were down substantially. The question: WorldCom is going belly up but none of the trusts are buying or selling from WorldCom, none of the trusts own WorldCom, why are they tanking? The US Fed has just said that it is going to keep interest rates low so, again, why are the trusts down. If the US had raised interest rates in an attempt to shore up the US dollar (check the FOREX if you want to see what is happening tothe US dollar. We should have sold everything, mortgaged the house, indentured the wife and kids, and bought euros two weeks ago. It looks like the euro is going to parity with the US dollar, or, if the momentum keeps up, is going to a permium. It's been amazing to watch the trading. In any case, any thoughts on why the trusts took such a hit today?

To: Scott Mc who wrote (3578)	6/26/2002 10:13:15 PM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

I agree that you can make money trading rights, people do it, it is however Dilutive on the company whether you like it or not. ------ Lets take some numbers The rights offerring (Q1 2002) gross proceeds of $71 million Net asset for the trust of trusts (EIT.UN) dec 31 2001 ----- $197.8 million mar 31 2002 ----- $274.1 million jun 25 2002 ----- $280.5 million The rights offerring added 11.7 million trust units Units issued and outstanding dec 31 2001 ----- 28.9 million mar 31 2002 ----- 40.5 million Now with these numbers from their Q1 and 2001 Annual Reports. The question is """"" Is the average unitholder who took advantage of the rights better off or worse off because of it?"""""------- ------- To answer that we need the following further info Unit value on TSE dec 31 2001 --- $6.90 unit value on TSE jun 26 2002 --- $7.08 Distributions 6 X $0.07 = $0.42 I'll do my own number crunching of this in my next post a little later. What do you think?????????? ---------------------

To: Scott Mc who wrote (3578)	6/27/2002 2:47:33 AM
From: Peter W. Panchyshyn	Respond to of 11633

I agree that you can make money trading rights, people do it, it is however Dilutive on the company whether you like it or not. ----- Using the numbers taken from EIT.UN Q1 2002 and 2001 Annual report here is my number crunching in regards to the issue of dilution. And in particular if a unitholder who partakes in such is worse off or better for. Lets look to net asset value per trust unit (NAVPTU) dec 31 2001 ---- 197.8/28.9 = $6.84 (before rights) mar 31 2002 ---- 274.1/40.5 = $6.76 (after rights) jun 25 2002 ---- 280.5/40.5 = $6.92 (now) This shows that the rights issue had a $0.08/$6.84 negative impact on NAVPTU on mar 31. Adding in the monthly payouts made and the gains from trading of the rights easily erases this. And makes a net positive impact for unitholders. Going forward from mar 31 to now shows much better as there is no negative at all and only left with the gains from trading, the income, and the rise in the unit price. Now one can do the same sort of thing for each of the other several years past rights and warrants. And the same sort of thing can be shown to have occurred. ---- ------- Thats what the facts show. THE UNITHOLDER IS BETTER OFF FOR IT. ---------- FEEL FREE TO TAKE THE EVIDENCE APART.------

To: Scott Mc who wrote (3578)	6/27/2002 3:13:16 AM
From: Peter W. Panchyshyn	Respond to of 11633

I agree that you can make money trading rights, people do it, it is however Dilutive on the company whether you like it or not. ------- Using a bit of a different look at it from my last post Unitholder A has 1000 units of EIT prior to dec 31 2001. He is given 1000 rights by the trust. He converts the rights to units and now has 1000 + 250 units. Lets look to what he ends up with His original 1000 units have gone from $6.90 to $7.08 His 250 units gotten from rights have gone from $6.10 to $7.08 His distributions are 6 X $0.07 or $0.42 per unit He bought more rights (10000) for $0.10 and sold them for $0.20 gaining $1000. He has now 1250 units paying the same $0.07 per month. When before it was only 1000 paying $0.07 per month. Clearly he is much better off