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Noranda Income Fund Unit T.NIF.UN


Primary Symbol: NNDIF

Noranda Income Fund is a Canadian based income trust. The fund owns the electrolytic zinc processing facility and ancillary assets located in Salaberry-de-Valleyfield, Quebec. It produces refined zinc metal and by-products from sourced zinc concentrates. The fund's long-term objective is to maximize unitholder value and provide monthly distributions to unitholders.


OTCPK:NNDIF - Post by User

Bullboard Posts
Post by Bigbird999on Dec 06, 2014 8:35pm
314 Views
Post# 23203468

What is the objective

What is the objective
Quoted from the top of the page:
"Its primary objective is to provide stable, monthly distributions."  At the end of November, after the recent crash, the board declared the "stable monthly dividend".  They will do the same at the end of December and every month for the foreseeable future.  There is no justification, or any indication that the regular monthly distribution will not continue for at least the next 30 months.

A few days back somebody posted that it seemed that about 25% of the units were responsible for all of the trading activity. 75% of the priority units have been held for a long time and/or acquired at ~$5.  No doubt, there are a few shareholders that have panicked and sold their $5 stock at $2 because they were afraid it would go to $1, but the vast majority have not sold.   Add to this year end tax loss selling  and a  bunch of day traders and fear mongers looking to make a quick profit and you have the same 25% of the shares being traded back and forth.  Meanwhile, the dividend seekers are sitting on their 75% of the shares collecting dividends and waiting.  A lot of folks , including me are accumulating at the current price to take advantage of the current 23% dividend rate.

If you bought this stock for the stated objective, today's price doesn't really matter.  Just keep collecting the monthly dividend and wait.  Down the road, this stock will be worth a more (and I believe, a LOT MORE) than the current $2.24 and in the meantime you will collect those "stable monthly distributions"

BB

Bullboard Posts