New-born Baby's Cans: Making Money in a Down Market

[New-born baby]

I read again the thick document that I received yesterday from Scottrade. We are "INELIGIBLE APF UNITHOLDER", who will not receive StarPOint PAYment units. However, it does state that these units will be delivered to the Depositary and Exchange Agent for sale (in my case, It's scottrade). They have to sale these units within 5 business days after receive them. We will get a check back.

I'm still a bit confused. If I'm a unitholder in Canada, what will I get for my 500 shares of AY? Will all my shares of AY be converted to STN, or I will still have my 500 shares plus some STN units? What role does Rockyview play here? IT's just too complicated.

You are not the only one confused. It seems that you will not get any Starpoint; you will get no divy; you will receive shares of a near worthless exploration company (Rockyview) and the shares of Starpoint that you would have received will be sold (along with millions of other shares that non-Canadians hold--thus ensuring that you will receive less for your stock). In short, time to get out.

[df21084]

I'm out

ALL AY.UN HOLDERS:

AY is being bought out by STARPOINT ENERGY (STN.UN).

STN.UN DOES NOT HAVE THE PROPER PAPERWORK TO ALLOW FOR US STOCKHOLDERS. AY SHARES ARE BEING DUMPED ON THE MARKET, AND YESTERDAY PINK SHEET HOLDERS TOOK A MASSIVE 30% HIT. MY ADVICE: CHECK IT OUT AND GET OUT.

Newborn,

I'm out, although I should receive 1 more distribution.

What's your recommendation on other CanRoys of late (PMT for instance)?

Thanks.

[New-born baby]

PMT by all means

Newborn,

I'm out, although I should receive 1 more distribution.

What's your recommendation on other CanRoys of late (PMT for instance)?

Thanks.

I love PMT and bought more this morning with the funds from AY. Great company, solid divy, payout is only 75%, natural gas is going up to run the electrical generators to keep the air conditioning rolling--looks good.

AE.UN is good, lower distribution.
NVG--a lot of debt, 15.8% payout, looks good going forward for a small play.
VKR.UN--good company at today's 6.80 price
BTE
NAE--both good companies.

[yaoyao]

The symbols are the same as if you were checking price via TSX.COM.

AY.UN
PMT.UN
NVG.UN
BTE.UN
AE.UN
VKR.UN
AVN.UN
SHN.UN
HTE.UN

Also, if you are a buy and hold Can investor, you'll need to set up an account in Canadian dollars. You see, if you buy AY.UN by just clicking a button, they will buy it for you in Canadian dollars. Of course, you funded your account in USD. Therefore, they loan you the CD and charge you interest. What you need to do is set up a currency account (within your account) in CD also.

Here's how to do it: Let's pretend that you have $50k USD, and you want to buy $20K CAD. Simply type in "CAD" on the page where you'd buy/sell stocks, and when the pop-up comes up asking you "Stock, option, CASH", select "Cash." Then you'll automatically have streaming quotes to buy/sell CAD vs USD to fund your account. So select "buy", type in how many CAD you want, and transmit. You are done.

New Born,

Thanks for you info. My fund is in place and I'm going to set up a currency account in CD. I just missed a little on a limit buy today.

I have a question for you. I'm taking a vacation in Canada in August, and would like to have a couple of thousand dollars of cash in CD. I've checked Bank of America. Its exchange rate is at 0.85 today (too high compared to 0.804 at xe.com). I dont know if I could withdraw CD from my IB account. Do you have experience with it?

Thanks.

Yaoyao

[dmk112]

NBB, are you involved in the CANS? Any new ones?

[TFred]

Greetings,

As far as new listing in US,CNE is relatively new,and Baytex is soon or already listed.
Many Cans are yielding 13+% right now,which is hard to ignore.

A friend Ive met online has accumulated enough units to produce 8K in monthly income from his trusts.He really is only concerned with distribution stream.PPS is only a problem if you need to sell right now.With IB you can trade on the TSX directly,much better pickings IMO.I'll be switching soon.

cordially Tom

[New-born baby]

Welcome to the Club!

Greetings,

As far as new listing in US,CNE is relatively new,and Baytex is soon or already listed.
Many Cans are yielding 13+% right now,which is hard to ignore.

A friend Ive met online has accumulated enough units to produce 8K in monthly income from his trusts.He really is only concerned with distribution stream.PPS is only a problem if you need to sell right now.With IB you can trade on the TSX directly,much better pickings IMO.I'll be switching soon.

cordially Tom

Yes, Tom, welcome to the club! You'll enjoy the IB services!

[Peter Hansen]

New Born hello There!

Padre...speaking of CANS any opinions on PGH and HTE.....HTE has a 13.43% yield....do you hold any of these?

[New-born baby]

Padre...speaking of CANS any opinions on PGH and HTE.....HTE has a 13.43% yield....do you hold any of these?

Pete,
They have a lot of growth left in them!
I do not hold either right now. I am waiting for a further pullback in the oil price and exchange rate. The CD/USD exchange rate is directly tied to the commodities market. As oil falls, so does the CD. Therefore I figure it is not the best time to enter these stocks. Still, if you are buying to hold, or if you have a IB account where your money is already in CD, then you are in great shape. I like these stocks to rise from here between now and the next ex-date.

[New-born baby]

Hte

Pete:
I forgot to mention that I have HTE.UN. You see, I did have VKR, but HTE took VKR over and I am just letting it run. Doing quite nicely for me, too.

[df21084]

A friend Ive met online has accumulated enough units to produce 8K in monthly income from his trusts.

Holy Toldeo! That's sweet - like crude. But is that income stream sustainable?

[New-born baby]

Sure

Holy Toldeo! That's sweet - like crude. But is that income stream sustainable?

Sure it is. You see, the Canadian govt has declared these trusts tax-free as long as they payout over 50% of INCOME (not earnings!) to unit holders. It is a nice way to go!

[df21084]

Newborn

Sure it is. You see, the Canadian govt has declared these trusts tax-free as long as they payout over 50% of INCOME (not earnings!) to unit holders. It is a nice way to go!

Doesn't the Canadian government take 15%? I know you can recover the 15% from the IRS if you have a taxable account, but what if it's in a retirement account?

And what CanRoys would you recommend with the latest oil-price retreat?

[New-born baby]

Doesn't the Canadian government take 15%? I know you can recover the 15% from the IRS if you have a taxable account, but what if it's in a retirement account?

And what CanRoys would you recommend with the latest oil-price retreat?

I probably do not make a good tax advisor, but I do know these facts:
1. The Canadian govt is granting the 15% back to US citizens who have it in an IRA. You have to contact them and they decide on a case by case basis.

2. There is a thing called a foreign tax credit.

3. Cans that I recommend today:
First, avoid the NG canroys until the NGas price settles down. PMT.UN for example.

I like COS.UN--$165 CD per share.
I like HTE.UN--about $33 CD per share.

Study it yourself here Newborn Baby's Canlist Click on the "distribution" link and check out how much they pay monthly.

[df21084]

Thanks NBB

I love this site!