A couple of things to keep in mind when you look at products like the CSB and GIC’s. These are designed as retail products for small investors. The way that these products are created is by shaving the yield from an underlying asset reducing your return.
At this point there is no indicator signalling a rise in the price of the units . Why own what is essentially an equity if it doesn’t seem to have an upside?
Without a reason to hold in anticipation of a richer payout of distributions or appreciation of the price of the units I think that its time to look for an exit.
Tough times no doubt and given the seasonal nature of the business with sales strength in the May to August period I think you would have to be cautious at the best of times.
Hi Lou,
Do you have any comment on Enervest Diversified Income Fund? I bought it in 2001 and it has performed well for me in terms of distributions, but it has cut its distribution, its share price has fallen, and management has changed. I’m wondering if it’s worth holding onto it to see if it comes [...]
The Investment Reporter as well as the BUY and SELL advisory gave this a buy rating when the unit price was trading at $5.67 (This is much after the div. was reduced in May)Since then it has fallen to $5.15 and has been staying around $5.20.
There was some unusual trading today when it hit $5.28 [...]
Hi Lou,
What’s your thoughts going forward with Penn West (PWT.UN) …they’ve dropped their dividend for the month of April. Could that be an indication for trouble ahead?
Colleen
Hi Colleen,
Penn West Energy Trust ( PWT.UN TSX) did reduce their cash distribution in April to $0.15 per unit and they have maintained that level for the month of May [...]
