Crius Energy Trust Tr Unit CRIUF

RE:RE:RE:RE:Bit of interest building this morning?

[deisman03]

This trust is very similar to an ETF. They do have to pay out a specified amount of their available cash. The thing is, they can cut the distributions to pay down debt or to make acquisitions. Another way they can cut distributions is to float new units or sell off their reserve units thereby dilluting the distributable amount of cash. 

JE did that about five years ago and it tanked the trust's price to where it is today. 

There are all sorts of ways to cut the distributions. Sometimes unit holders want the price of the units to rise and make their demands well known at AGMs, or creditors come after them and they have to float reserve units to pay them. 

I don't see any reason for them to cut the distribution. I can see a scenario where the unit price is purposely manipulated to keep it low, so that it can be taken over for the cash flow or to sell off in a manner that it's no longer profitable for unit holders such as ourselves. 

They need to be very careful right now and so do we. 

The high distribution level is taken as a negative signal by many traders. The algorithmic trades definitely take it into account. 

GLTA the good folks here