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

To: Scott Mc who wrote (3728)	7/24/2002 5:45:55 PM
From: bill	Read Replies (1) \| Respond to of 11633

I've a simpler question than the RC one. SPF.UN has dropped a fair bit. It is now paying 14+ cents a month. I was thinking of adding more. Good idea? Bad idea? My trust units have been being beaten up the last few days. The dividends keep coming in, though. An opportunity or a foolhardy move in the face of a declining stock mkt.?

To: Scott Mc who wrote (3728)	7/24/2002 9:06:24 PM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

Its simpler than that, they want as much tax as possible, and its (in this case) heads they win, tales you lose.... ------- Good point. And most probably quite correct at that --- As far as margin, yes I use margin however my outstanding loans are over $100K less than they were 2 months ago, so I think I still have a little room to work with. Scott ------ In regards to the use of margin and leverage. I for one use a much better take on the matter. I use an investment line of credit from the bank. And a margin trading account. The line of credit has not the same kind of call on it as a margin account alone. With my line of credit I just have to show quarterly performance reports. That gives me a 3 month window as against the margin alone which when called you have to come up with the cash at that moment. No exceptions. Or they will sell what you have at a loss. Again with no exceptions. In my own case I allways have a bit of leverage in use. As the income I receive each month much more than covers this portion. I have never used the full amount but have it there as a cushion. Just to be safe. In regards to the costs of doing so. I only am charged for the portion that I use at any given time. Typically when using leverage your costs are not what you pay for the trust units but the interest you end up paying for using the banks money. Which if you do it right and with a method behind it can be far less. -------------------------