Wednesday, 12 January 2011

$8 Target On Carfinco from GMP Analyst

Carfinco Income Fund (TSX:CFN.UN) Units issued: 23.9 million
Units fully diluted: 24 million
Current monthly distribution: $0.02
Q1/2010 special distribution: $0.04
Q2/2010 special distribution: $0.10
Q3/2010 special distribution: $0.10
Q4/2010 special distribution: $0.31

In the wake of news (click here) from Carfinco that it hired a U.S. investment firm to explore the possible sale of the income fund, GMP Securities analyst Steve Boland is calling for an $8 price as fair value for the company.

Quoted in a FP trading desk report, the analyst sees three different scenarios unfolding (click here).

It's interesting that Carfinco looked south of the border for an investment firm to beat the bushes on its behalf. It's a pretty clear indication of what the fund's Board of Trustees is thinking regarding the location of a possible buyer (click here).

Carfinco has until the end of this year to convert from an income trust to a corporation.