Saturday, December 16, 2006

Better news to come for income trusts?

Ottawa to allow trusts to double in size over next four years

That was the first good news I had seen about Canadian income trusts for a while. Then I recently saw these:

Trusts turn up the heat.

Okay, that's nothing special, but it shows the trusts are not ready to give up and they should not in my opinion especially because:

Dion would reconsider oil sands trust taxing.
The new liberal leader would reconsider the tax for at least the oil sands trust. There would be some environmental catch, but that's better than nothing.

I would not say that trusts have a bright future ahead of them, but just after the recent collapse, I've bought a few (like Advantage Energy, AVN-UN, at 12.18) that were a real rebate and will give me nice yields for the next four years. I'm not sure what's after that though. I hope the companies will do well under a regular coI have the feeling that the outlook might improve though if the political pressure remains strong enough. We will see :-)

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