Telus to convert to a Trust:
Telus has just announced it will reorganize in to an income trust structure to become the second largest trust in the country. The shares rocketed higher on the news as investors jumped in. It is expected that Telus as an income trust will increase the distribution form the current $1.10 per share dividend to approximately $4.00 per unit. This quadrupling in income to the unit holders is mainly due to the changes in tax implications when moving from a Corporate to a Trust structure.
I would not be jumping into Telus at this time due to the surge in price, I would be waiting to see if the new income trust can in fact generate enough cash on a consistent basis to payout the anticipated distributions. There will be a huge investment of capital required to remain competitive in the telecommunications business over the long term. I am not convinced that a telephone company has the required consistent cash flow needed to be a viable income trust.
Hewlett Packard is under increasing pressure due to the continuing investigation into how investigators hired by the company were able to get information on unlisted private phone numbers of reporters and HP board members as part of an internal investigation into media leaks of board meeting information.
Rival Dell is also under pressure due to an ongoing investigation by the SEC into the details of the option back dating program at Dell. Dell today announced it will be delaying the release of earnings reports until the details are clarified.
I would stay away from both of these companies as the down side risk is very high due to the increased possibility of more negative news coming out in the near future.
September 11th is now a day that everyone in North America views as a day that changed the world. The live coverage at the time was absolutely mind numbing the picture of the first tower falling was something I will never forget. The confusion about how it could happen, who was responsible, was there more to come kept everyone on edge for days even weeks after.
I am a bit surprised that the feeling that we had all shared a common experience has not remained alive after only five years. The world has not become more stable more understanding it has instead become more uncertain more violent more divided than it has been in decades or so it seems.
I do not think we have learned anything from this shared experience it seems that in many ways it is just business as usual. There has not been a continuation of the courtesy and helpfulness that was the general reaction to September 11th at the time. I think all of that has been lost in the race to retribution and the notion that if we just eliminate a few of the terrorist leaders we can all be safe.
I think we in North America have missed a golden opportunity to learn from this event and change the way we as individuals deal with each other, with respect and courtesy, which over the longer term would have a huge impact on how we deal with other nations and that would make the world a safer place.
For more information go to www.campbellreport.com
I would not be jumping into Telus at this time due to the surge in price, I would be waiting to see if the new income trust can in fact generate enough cash on a consistent basis to payout the anticipated distributions. There will be a huge investment of capital required to remain competitive in the telecommunications business over the long term. I am not convinced that a telephone company has the required consistent cash flow needed to be a viable income trust.
Hewlett Packard is under increasing pressure due to the continuing investigation into how investigators hired by the company were able to get information on unlisted private phone numbers of reporters and HP board members as part of an internal investigation into media leaks of board meeting information.
Rival Dell is also under pressure due to an ongoing investigation by the SEC into the details of the option back dating program at Dell. Dell today announced it will be delaying the release of earnings reports until the details are clarified.
I would stay away from both of these companies as the down side risk is very high due to the increased possibility of more negative news coming out in the near future.
September 11th is now a day that everyone in North America views as a day that changed the world. The live coverage at the time was absolutely mind numbing the picture of the first tower falling was something I will never forget. The confusion about how it could happen, who was responsible, was there more to come kept everyone on edge for days even weeks after.
I am a bit surprised that the feeling that we had all shared a common experience has not remained alive after only five years. The world has not become more stable more understanding it has instead become more uncertain more violent more divided than it has been in decades or so it seems.
I do not think we have learned anything from this shared experience it seems that in many ways it is just business as usual. There has not been a continuation of the courtesy and helpfulness that was the general reaction to September 11th at the time. I think all of that has been lost in the race to retribution and the notion that if we just eliminate a few of the terrorist leaders we can all be safe.
I think we in North America have missed a golden opportunity to learn from this event and change the way we as individuals deal with each other, with respect and courtesy, which over the longer term would have a huge impact on how we deal with other nations and that would make the world a safer place.
For more information go to www.campbellreport.com
posted by Grant | 4:34 PM
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