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Gold/Mining/Energy : Oil Sands and Related Stocks -- Ignore unavailable to you. Want to Upgrade?

To: kurtwalter2 who wrote (13319)11/1/2006 1:45:02 AM
From: len_chan  Respond to of 25575
 
So what will happen to COS.UN tomorrow?

IMHO, something like this was inevitable. Companies were starting to convert left and right. After Telus and Bell Canada made their announcements, well, something had to change. A larger dividend tax credit would have been nice, but I guess that wouldn't prevent the disappearance of corporate income taxes.

So, my prediction for tomorrow? Well, when companies announced conversions into income trusts, they tended to get a bump of 10-15%. With the Halloween announcement, I would imagine that the "proper" decrease would be something similar -- maybe a few points lower since there is a four year grace period.

But what will really happen tomorrow? Well, I know I'll be sniffing around if any existing trust drops significantly more than 10%.

LC



To: kurtwalter2 who wrote (13319)11/1/2006 8:30:21 AM
From: Wyätt Gwyön  Respond to of 25575
 
It can hardly be held for its yield, which is hardly higher than a bond

i think its yield can probably double over the coming year, and has upside from there depending on what the price of crude does. since COS has very long-term assets, it will be priced to yield much lower than trusts with short RLIs.


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