SIFCO Industries Inc T.SIF.UN

RE: Distribution Increase

[Delphi008]

With the next distribution increase, which should happen in the early fall, the annual rate will be over $1.20 which brings it back to what it was when this company went public in 2001. However, in that period of time, the company has had two splits, each 2 for 1. Therefore, for those who bought at issue price of $10 in 2001 (and I know many!), their annual yield on their investment will be 48%. Oh hell, call it 50% for a much better sounding figure. How's that for a steady stream of income. Even Jim Flaherty couldn't put a dint in that! Oh sure, he knocked the unit price down to $11.75 but, it's clawing its way back up and at current levels those original IPO investors still have a 6 bagger! This company has had many detractors over the years on this board and amongst professional analysts and portfolio managers and they all just didn't get it and badly missed the boat. So what about the future? It will be more of the same old boring stuff. Continuous growth in customers throughout Canada and the US, distribution increases every three months for as far into the future as you care to look and capital appreciation. Today you buy it at a yield of 7.5%. A year from now that yield will be 9% and a year after that 10%. My biggest concern is the company may not be around much longer. With the kind of growth they are experiencing, especially in the US, I'd be shocked it they are not already on numerous private equity radar screens. I keep hearing that Rebecca McDonald's health isn't great and that she would like to slow down. The next 6 - 12 months could be interesting....!