ONEREIT TRUST UNITS T.ONR.UN

RE: New to this board I would appreciate help

[nijinsky70]

Your questions, which are the very same questions that we all try to answer, would be decided when ONR and PSN become publicly traded.  If not on November 1 as expected, a couple of days later (as per the arrangement document).  

Based on the proforma F/S, the new ONR would have a book value of about $2.30.  Prior to PSN becoming a money maker, ONR was already trading around $4 to $5, so I would be very disappointed if we don't get at least $3 for new ONR in the open market.  After all nothing has changed.    

As to PSN, that is much harder to guess.  The average best blue chip TSX dividend paying companies (such as the banks), pay about 3.5% to 4%.  The REITs pay about 7% to 8%, or there about.  PSN with no history would likely be given a higher rate. 

Personally, I expect about 10% (just a guess again).  In that case, the SP of PSN should deem to be $10 to $11.  If PSN only trades at $9 (or 12%) I would be very concerned.  It's telling me that market does not have a lot of faith in PSN being a viable ongoing business.  More often than not the market is right about these kind of things.

Anyway, my back of the envelope calculation says one current ONR share should worth about $12.72 on initial split (new ONR $3 + PSN $11 x 0.8839 = $9.72 = $12.72).  

Of course this is just a wild guess.  I love to be proven wrong by the market, especially wrong on the low side.  LOL.