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Saturday, November 10, 2007

SDT.UN and EIT.UN Trying to Support Unit Price With Buy Backs on the Open Market

The managers of SDT.UN and EIT.UN were actively in the market last week trying to support their unit prices.

Its hard to believe how far the unit prices have fallen and the discount to Net Asset Values are widening. Its no question that they are experiencing panic selling.

I have not sold the positions I still have at this point because sooner or later the unit prices will get closer to their net asset value. Furthermore, these stock buy backs will automatically increase the Net Asset Values of the remaining units.

Its like shooting fish in a barrell for the managers right now. They can raise their Net Asset values just by purchasing units. They will look like geniuses.

As the unit prices approach 95% of Net asset value I will begin to unload my remaining units.

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