Very, very interesting BEP.UN & BEPC actionI just got back from a week of camping and hiking in the Rockies so my brain is still working a little slower than normal. (actually probably a lot slower)
I had planned on eventually selling all my wife & my BEP.UN 2410 units and buying the equivalent BEPC shares. Of course, I wanted to wait until after the July 27 record date for the special distribution. For whatever twisted reason, I planned to buy the BEPC shares first and then sell the BEP.UN units. As it turns out, BEPC cannot be traded on the regular TSX until Thurs.
Anyway, it dawned on me earlier this morning that with the huge arbitrage between the current BEP.UN and BEPC prices, it actually made sense to sell the BEP.UN units now. By the time I went to put our sells in (on RRSP, RRIF, and TFSA accounts), BEP.UN was in free fall so I missed out on a price close to $70 and settled for an average of $67.65.
From what I understand, I will still get my special distribution BEPC shares as I was a holder yesterday. On Thurs, I plan on buying 2200 shares of BEPC and think (hope?) the price will be around under $57 (cuurently $54.75). If this is the case, my juggle should result in a profit of around $23k.
Anyone that has BEP.UN shares in a registered account may want to think about doing this juggle. Of course, make sure you do your own calcs.
Ciao
Sarge