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

To: Ron Everest who wrote (4179)	9/12/2002 8:34:14 PM
From: bill	Read Replies (2) \| Respond to of 11633

I wasn't disagreeing with Lorne. I'm new trust unit and need to get the process straight. In the past I bought mostly spec stocks. My usual strategy with spec stocks has been to buy one lot, then divide in two. Half I keep for the longer term (WSP, ABZ, for example)and half I trade. If the trading goes well, I recover the money at risk in the long term hold. Say, I bought 10,000 WSP at 1.50. If my trading can give me a 1.50 profit, then I'm totally protected on the downside--which is important with spec stocks. If it goes to 5.00, as WSP did, then I've got the 7,500 from the trading and the 3.50 x 5 from holding. If the stock tanks the worst I can do is break even. Doesn't always work, of course. So, I guess I'm a middle of the roader, willing to take a chance but wanting to also hedge my bets. The idea of dividend stripping is new to me. Given the costs of trading, even on line, I would have thought it difficult to make much of a profit unless one is buying large amounts of stock. With the price of ARC, GLH and SPF, I'm not in the position to buy ten or twenty thousand shares. That's why I asked about the minimum amount of shares that would make this tactic successful

To: Ron Everest who wrote (4179)	9/12/2002 8:39:23 PM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

My thinking is to get in just before ex div, recover the dividend, a probable capital gain ------- Keynote here is a probable capital gain. Not a certain capital gain , not a definite capital gain, not an absolute capital gain. And heaven forbide what if it is a capital loss. Which is as equally quite probable. ------- and get out asap after the ex div date. This has been working successfully for some time. If perchance one gets caught, the simple stragegy is to hold and yield the 7%. ------- So here you acknowledge that someone can and does """GET CAUGHT"""" from time to time. So to hold and yield 7% with a capital loss of X% means what?????????????. And holding for a trader is a bad word and it does not show superior success (returns) as is stated. Tying up money for a trader for any length of time means he has less to do for other things. Those other things may include getting even more a gain in the next trade because the previous trade was a loss and you need to "cover" that IF YOU CAN ---- These are issues which you do not address. Nor do you provide any real world trust trading data. Though it is nice to see you at least acknowledge things like "probable" and "if you get caught". ------- And as a further note to "getting caught" suppose as in the case for Lorne recently ,you "get caught", are tapped out, fully margined and the market continues to drop hard for several more days or weeks. Your tapped out out your getting margin calls and your broker makes you sell some of your holdings at a loss. What then? SUDDENLY A BAD SITUATION HAS GOTTEN A WHOLE LOT WORSE!!!!!!!!!!!!!!!!!!!!! (How does a 7% yield ,or any yield ,help you there?) YOUR SCREWED ----------------