LOSING MORE TRUSTS

TIL.UN

TIL’s results out last night and it was not very good. While cash earned for distribution is alright and it appears that distribution is safe for now, most of its earnings were from foreign exchange gains. Operating results were bad. It is facing tough competition, slow down of housing market, and continuing high input costs. Outlook appears gloomy. There were not too many positives in the fundamentals. If there’s any lessen I have learnt this year, it is that it never pays to buy bad companies. I bought this one for its relatively high yield, but it is high for a reason. I have decided to sell it when it rebounds a bit. I also would like to listen to its conference call this morning to see what management has to say. Sold TIL.UN at 9.35, resulting a terrible 30% loss. This qualifies as a blowup for this year. Trust sector remains highly uncertain, and I have to try to trim more.

BCSI

BCSI earnings missed consensus by a couple of cents and it plunged by about 20%. I had an idea to buy some way out-of-money puts yesterday as I thought this one is priced to perfection. It would have been gold tonight. I put this thought here not because I thought about it, but for the thinking process.