Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: David Alon who wrote (3749)	7/25/2002 5:25:06 PM
From: Peter W. Panchyshyn	Respond to of 11633

Ron, I agree with that scenerio,but remember that at this point your yield is only 7%.One has to measure the risk/reward ratio. I am looking to do that with a higher yield, eg CSS.UN. ------ Ron's numbers of a 12% yield ($0.07 X 12 / $7) is for non leveraged. That 7% he speaks of is after the cost of leverage use. And as he states it would be more if you took into account the interest rate write off and the taxable portion of the trusts income. Ron did a pretty good job at delivering the risks/rewards. You're correct you have to measure the risk/reward as well as your own personal preferences and circumstances. You look to doing that with a higher yield (CSS.UN) and thats fine for you. Now one of the risks maybe to look at the volatility of the trust units themselves. How they have traded. One idea might be to compare the variation in trust unit prices for EIT against CSS. And in particular how they have just behaved over the last couple of days. How far did EIT fall and manage to recover? How far did CSS fall and manage to recover? Something like that info maybe important and may help one decide which he will go with. Again given his preferences and circumstances. ---------------------