TSX:REI.UN - Post by User
Post by
mavion Nov 11, 2001 9:22pm
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Post# 4394144
Enervest offers its shares for RioCan
Enervest offers its shares for RioCanI received a notice that Enervest Diversified Income Trust is offering to exchange its shares for some RioCan shares.
Enervest is putting together a basket of about 50 company shares/units (trust units from real estate, energy etc.)and other income/dividend funds etc. One Enervest unit would reflect all the held units.
Looking at the basket, I think that while this may be an attractive unit to buy for conservative investors, it seems that RioCan gives a better bang for the buck at this time.
It is a matter of two considerations.
1)Which gives the greater yield? RioCan is at about 9.5%. I would guesstimate the basket at about 6-8% (any better estimates from other posters?)
2)Which has the better potential for further price appreciation? Most posters here feel $15-$17 is in reasonable sight. Further, if RioCan becomes a takeover object, then $18-$20 is more likely. As for the basket, because it is so diversified, I would guess that the price value will be pretty stable, with upside moving with the general market.