RE: Inn.un "MAY" be hurt by new tax ruleI disagree about you not owning the security , BUT, I do agree fully with you about the basic rule of thumb: NEVER act on panic; news headlines; misinformation; incomplete information and lack of guidance from the issuer. This could turn out to be a blessing in disguise for Innvest. Flaherty as usual has acted in a draconian manner AFTER approving the stapled -reit structure. Remember, Innvest had to receive BOTH court/regulatory approval and approval from the Minister of Finance's Office in order to restructure. Their lawyers were given the go-ahead so there may be grounds for an appeal here.
Let the panic and fear wear off and allow the stock to regather itself and let us wait to hear from Management. We do have 1 year before these rules become law and then likely another change is enacted by Flaherty. The strange thing is that there are a number of Stapled-Reits operating now such as H and R who all believe that they are all unaffected by these new changes. There are energy stapled-reits also who have just stated that they too are unaffected, i.e. Parallel Energy Trust etc.
I checked insider trading and as usual, principals of the REIT were buying right up to last Friday so they were caught off guard also. Insiders for the most part continue to buy buy buy knowing full well the intrinsic and future value of Innvest. Their properties alone must have a net value of at least 5.00$/share in spite of them mostly mortgaged. The Canadian economic picture is steadily improving and the future looks good for Innvest in terms of making a comeback. Plus there are good acquisition opportunities available now.
So, I am waiting until I have all of the facts before I decide anything. In any event, I think that the impact on the distribution will not be that great if Innvest cannot restructure again to fit into the new box of rules. Keep a cool posture here and wait until the dust settles. If you don't need the dividend income, then this is a glorious buying opportunity, in my humble opinion and the 3million+ other shares bought up today have buyers behind them who also believe the same as I do. Fundamentally, nothing has changed and with the Toronto portfolio now profiting so much from so many major events, Innvest will be back to positive cash flow soon. The Pan Am Games are coming to Toronto in 2015 and Microsoft will hold its world international plenary session in Toronto in 2012. I single out Toronto because the Toronto area; the GTA and southern Ontario will all benefit and this region holds the lions share of Innvest's properties. A recent report indicated that of all cities in Canada, Toronto was now booming and leading all others in economic recovery and growth.
In the meantime, I expect to continue receiving a dividend every month for the next year at least and the yield is very very good at the current trading price (just over 9%)
Any comments by others?