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Does anyone have any comments or views on The Consumers' Waterheater Income Fund? Yield looks nice an >20%...would love to throw this into a TFSA.

If anybody has comments/views that would be great.

Tim
 

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Yuck. There is a reason this thing hit a 52-week low today. According to globeinvestor.com the payout ratio is an absurd 327%... can you say dividend cut. Debt/equity is staggering and interest coverage is periously low. Despite all that the P/E is still high at about 20. Get out your barge pole. That said if you have a strong will it may be a bargain.. as some numbers are, well not as horrid as those above.

Disclaimer: Check actual numbers... don't rely on sites like GI...
 

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Yep , what he said.

Also what are there plans for 2011 when they must convert to a corporation , what are the tax implications as well as dividend cuts , they will most likely be down to about 10% or less , still not terrible for a TFSA.

The dividend may be safe for this year so it may be a good choice for your TFSA , you can always add another $5000 worth of something else next year.

From a technical view it is well below both its 200 and 50 day moving averages showing signs of a continued decline , not a good time to buy as it may go much lower.

Personally I think this company will do OK when the economy picks up , it is probably a bargain at these prices but it may go lower yet and the conversion date is getting closer all the time.

I find it strange that a company pays out a 10 cent distribution on a $6 unit and still only pays out 10 cents when the unit price is $16 , it's good for the shareholders temporarily but is it sustainable.
 

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Most everything is related in some way... but not that I could tell. They rent waterheaters, woohoo. Lol. And apparently they aren't much good at business, but why would they be. Hey man I'm the best business person in the world what should I do? Get the drift?? ;)
 
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