Canadian Income Trusts and New-Issue Risk

Is it a good time to bargain hunt for Canadian income trusts? According to one school of thought, Ottawa’s planned 2011 removal of income trusts’ tax advantages has unduly rattled investors and spurred unwarranted selling.

That’s the kind of assumption that makes sense, but it’s unlikely… Read More

Capital Gains Taxes – Takeovers With a Twist

Two of our long-time recommendations —

Transalta Corp. $37 (Toronto symbol TA; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 199.0 million; Market cap: $7.4 billion; SI Rating: Average)

and

Fording Canadian Coal Trust $90 (Toronto symbol FDG.UN; Aggressive Growth Portfolio, Resources sector; Units outstanding: 150.0… Read More

What to Do With Fording

FORDING CANADIAN COAL TRUST $89.55 (Toronto symbol FDG.UN; SI Rating: Average) has agreed to a takeover offer from Teck Cominco for the 80.1% of Fording that it doesn’t already own.

Fording unitholders will receive $82.00 in cash and 0.245 of a Teck class B subordinate voting… Read More

Large-cap Funds With a Canadian Focus

TRIMARK CANADIAN FUND $18.44 (CWA Rating: Aggressive) (AIM Funds Management Inc., 5140 Yonge Street, Suite 900, Toronto, Ontario M2N 6X7. 1-800-631- 7008; Website: www.aimfunds.ca. Buy or sell through brokers.) uses a bottom-up stock-picking style (using fundamentals such as earnings, cash flow and low debt) that… Read More

Two Trust Buys for Income & Growth

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $28.28 (Toronto symbol BA.UN: SI Rating: Above average) is the main provider of telephone services in Atlantic Canada. It also serves rural parts of Ontario and Quebec.

In the three months ended March 31, 2008, Bell Aliant’s earnings fell 25.9%,… Read More