TSX:EIT.P.A - Post by User
Post by
felix10on Jan 04, 2007 2:38pm
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Post# 11956657
daddydigdog
daddydigdogI am a long time holder of eit.un, but would certainly advise caution about buying more these days. The big question for me is how secure are the distributions? Many of their holdings in the energy sector are expected to cut distributions in the next year, which will leave enervest with less to pass along to unitholders. As well, much of enervest's distributions have come from capital gains, and I suspect they haven't had much in the way of gains since Oct. 31.
As well, we are approaching the time of year when eit.un usually does a rights offering which I think would not be looked at favourably by unitholders this year.
Yes, I still think at the current price, you are buying an undervalued asset, but people buying this for the secure income could be in for a disappointment. I hope not. Just my opinion.