Investing Ideas
Mergers, Windfalls & Canadian Trusts | Action: Long, possible 49% jump in the very near term Some great news was released this morning which could send shares of Fortified Holdings (FFDH), our newest “stock on the move” much higher. We’re talking a double bagger in the making here, and a quick 49% in gains as it marches to a buck per share is very possible. | |
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| Mergers, Windfalls & Canadian Trusts |
| Thursday, 11 October 2007 | ||||||||
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And their U.S. investors get a WHOPPING PREMIUM of close to 40% over the pre-deal share price. This bears repeating—a premium of 40%. Now that’s something you can take to the bank! And the PrimeWest deal is just the opening salvo. It’s not too late to buy value trusts that are prime acquisition targets with huge cash premiums to investors. Global capital has billions to expend and cash-rich Canadian trusts are too tempting to pass up. Especially now, when these rock-solid businesses are as cheap as they’ve ever been. But first, you probably want to know how this solid gold investment egg landed on our plate…How the Canadian trust became the high-yield “bargain” that it is today with global capital suitors. To do that, I need to take you back to Halloween night, 2006.He Stuck Out His Tax Thumb and Now, Gives Investors a Plum! It was on Oct. 31, 2006, that Canadian finance minister, Jim Flaherty, told the world he wanted to tax SOME income trusts in 2011. Some U.S. investors gave their Canadian holdings the heave-ho BEFORE reading the fine print. It’s been a year since Mr. Flaherty’s big Halloween “boo” and income trusts are still churning out monthly dividend checks with 10%-21% yields. And, thanks to Mr. Flaherty’s foibles, prices on Canadian income trusts are rock-bottom for investors and GREAT acquisition targets! But not for long. The time to look at Canadian trusts is now.I do not want to rush you. But it will be a long, long time before you’ll be able to again buy these cash-rich businesses on the cheap. There’s just no way to lose. AND WHAT AN UPSIDE. Again, dividends 10%-21% and monthly checks. Here’s the Best News of All: Merger Mania
Happily for investors, here we go ‘round again! There’s a new player on Canada’s trust field and it's handing mighty windfall profits to astute investors. And that new player with cash spilling out of both fists is foreign capital. Many investors are waking up to find their cash cows up 30% or more in a day as foreign capital firms realize the true value of trusts. For instance: UE Waterheater is far from a household name in this country. But anyone who heeded Canadian Edge’s buy recommendation on this trust raked in a premium of over 50 percent when Australian conglomerate Alinta bought it for $22 a share in CASH—well above any price UE had ever traded for. There’s plenty more opportunity here since global capital still has $2 trillion up their sleeve, and right now, they’re circling over a dozen income trusts. While I cannot promise that every trust in the Canadian Edge portfolio will hand you a windfall, I know you can see the upside if you get in now. How Have Income Trusts Rewarded Investors? Just a Few Examples:
When you take advantage of my service, you get instant, online access to the best trust buys. I give you prices and yields in U.S. dollars. No guesswork about what you’re buying; it’s all in front of you. Plus, my online Subscriber’s Guide has everything you need to get you up and running. (And you can e-mail your questions to me—I WILL answer you.) Source Excerpted : Trader's Talk This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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