GREY:CRIUF - Post by User
Comment by
deisman03on Aug 11, 2018 4:46pm
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Post# 28445263
RE:RE:RE:RE:encouraging signal ????
RE:RE:RE:RE:encouraging signal ???? It was overpriced according to the business models most analysts are familiar with.
Some, who have looked at this and similar companies/trusts, see the value here.
Most analysts are uncomfortable with yields over 4% from monthly/quarterly revenue generatin investments.
Just Energy was starting to look like it was turning around and has a 10% distribution, paid quarterly. That was one of the kisses of death for their share price on top of their high debt load and the distrust for their lying management.
JE's price has dropped 20% from its recent highs.
In one of the recent downgrades after the 2nd Qtr report the analysts cited the same hype they did when they started downgrading KWH.UN at $10.
If you take the payout ratio analysts are comfortable with, the price of this trust's units should be over $12.
There are regulations that this trust must conform to if it wants to retain its tax status that dictates how much of it's income has to be paid out. There doesn't seem to be any regulation stopping them from paying more, other than their own due diligence.
I used to be invested in a trust that was taken over that had a different payout monthly. Then quarterly. IT was oil and gas based and went away from the INCOME TRUST model.
GLTA the good folks here