Friday, 21 January 2011

Carfinco On BNN

Carfinco Income Fund (TSX:CFN.UN)
Units issued: 24.5 million
Units fully diluted: 24.6 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

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Jason Donville, President of Toronto based Donville Kent Asset Management has become a regular on BNN's Market Call and as has become the norm, he was asked about Carfinco.

In last night's (January 20th) appearance he was asked about the recent announcement that a U.S. based investment firm has been hired to look for a possible buyer of the highly successful income trust.
He was clear that his investment is based on the strong fundamentals and company performance and that's why he holds the units and not because it may be bought out in the future. He is expecting 2011 to be another strong year for Carfinco.

He did say that if the unit price were to shoot up to $8-8.50 he might be prepared to part with his investment. Mr. Donville started buying in the $1 range and was still buying in the $5+ range. The units are trading just under $7 as of this writing.

It was mentioned that an analyst at Industrial Alliance (Fred Westra) believes that the Fund could be taken out at $9-10 per share. Mr. Donville said he would be thrilled if that was the case but he's in no rush.

The full interview can be viewed by clicking here, go to Market Call Tonight Part Two at about 3:20.