First Asset Core Canadian Equity Income ETF Cdn Eq CINRF

RE: Be critical

[lamystique]

There are acceptable standards for companies that issue new shares. There are also laws about regarding that, and one of them is book value. A company may only issue shares based on some credible *par* value, and that is usually the book value, and as may be noted it should not be based on *market* value. The company is obligated to issue shares based on some real value, after the company is selling more shares at *par value* or breakup value, otherwise the shares would be overpriced or underpriced. The market value is different since the market value reflects future value. Secondly the value of this company is based not exactly on a lot of shares. Unique Broadband Systems has 88 million shares outstanding, a market value of $9.50 per share or $800 million. It is obvious that the book value of Unique Broadband Systems is extremely low in comparison to the market value. The book value of UBS is only $10 million. Is this the company you want to invest in? The company makes no profit, and one day shareholders may start dumping it. One has to look at the fundamentals of a company. CSY is a company that has very strong fundamentals. It has one drawback that is that it is not very diversivified, however it has a very large market share in a segment of a market without much competition. Because there are so few shares outstanding, and only 2.5 million held by the public, compared to any other company that I know of this is one of the best. If the revenue of this company reaches $60 million, then the per share portion is about $ 9.00, and if the profit margin is hefty this year, say around 10-30 % then the per share profit margin will result in a very large increase in the market value of the shares. I am surprised by the amount of shares trading, and as we progress into the spring the volume should become less as more short term traders have fewer opportunities to buy large amounts of shares.