Re: How we discover stocks [Canadian Income Trusts]
- From: "karl" <kona-karl@xxxxxxxxxxx>
- Date: Thu, 30 Mar 2006 22:48:11 -0500
"The Visitor" <ksjhdsdfssjhfk@xxxxxxxxxxxxxxxxxx> wrote in message
news:CsVWf.62091$fd.9803@xxxxxxxxxxxxxxxxxxxxx
TRK.UN post. I don't know too much about it really. I bought a fair
portion because I felt this price was "okay" but am prepared to get more
if it dips to the low 10's. And it may well next week. I don't believe I
paid the greatest price for it. Record date is tomorrow. Hmmm, perhaps I
jumped a wee bit too fast here.
TRK.UN looks interesting but it's a new offering. I like to a little
earnings history before buying. I also lamented never buying Lakeport but I
can't bring myself to jump in now.
If their distributions miss targets, the price will surely falter from my
entry point. But I'll ride it out for awhile and see. The other I was
looking at was TMA.UN-T.
I've got TMA.UN. I must say I'm happy with it. I bought it in December
after the Goodale bounce at $8.10/unit. So today closing at $10.35 and with
distributions it's been a nice ~30% return. Like all the ones that turned
out right I wish I'd bought more.
I really liked their low payout ratio. Of course a trucking firm needs that
reserve for capital expenditures. Those big rigs are expensive. They are
hedged on fuel costs and for a happy surprise they raised their distribution
recently. Not stellar but at a little more than 9% annual distribution it's
a decent income stream.
Another income trust that has done well for me is PZA.UN. It is a pool of
Pizza Pizza franchise royalty streams. the beauty of these types is if the
franchise is solid, and Pizza Pizza is, your distribution comes straight
from the royalty stream. It's almost like having a franchise without any
work. The annual yield is 8.16%.
This one I fluked into buying in the middle of the Goodale Gap in Nov at
$8.70, now at $10.17 for a ~20% gain including distribution which they also
raised in January.
An income trust raising distributions is always a good thing.
In that same space I'm also looking at Priszm QSR-UN. It also a pool of
franchises, in this case, Pizza Hut, KFC and such where your distribution
comes right off the top. It's yield is a higher 12.86% after a healthy
correction last year.
Still kicking the tires. With higher yields come higher risk. This could be
a steal at under $10/unit though.
.
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