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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (4938)	9/3/1998 12:38:00 AM
From: Scott Mc	Respond to of 78618

Allen, these shares that trade as .IR are Installment receipts, which means that the shares have been partially paid and an additional amount must be paid. In this case while it trades at a substantial discount to the NAV, when you anti up another $4 (that is the standard payment, not sure in this specific case) you are not getting it at the 41% discount to the future NAV. That being said there are some decent Cdn CEF's trading at 30%+ discounts, and also some opportunity to buy these IR's when the payment comes due as some people will dump the shares instead of coughing up the next payment. Scott PS: Sorry to be so long winded, but there were a few strange cases where the installment was due(it is an OBLIGATION), however because of the drop in the share values the IR had a NEGATIVE value, and people were actually paying money to dump their shares(Boliden and Akita come to mind)

To: Allen Furlan who wrote (4938)	9/3/1998 6:46:00 AM
From: Demetre Deliyanakis	Respond to of 78618

I am not familiar with this bond fund. It seems to me that it is a Canadian Junk bond fund. I think Canadian bond yields will continue to climb(I.E. interest rates will rise). The Quebec government will call an election either this fall or next spring. The market IMHO has not priced in a victory by the ruling separatist party. Also, the Canadian Government will have refinance a large portion of its bonds this fall. I think the dollar will be weak this fall which will put upward pressure on rates. The spread on long term bond has traditionally been at least 1% higher than the U.S. rate. Earlier this summer, Canadian long term rates were below U.S. rates. I think we will see a more normal spread by winter.. I must caution you that I am not an expert in predicting Interest rates. Demetre