DOCTOR'S ORDER
I had an order for some DR.UN and was filled yesterday afternoon. The trust has been falling for a whi
le and currently yields at just a bit north of 12%. I did not think the decline is warranted. The trust's results have been rather healthy, payout ratio stable (89% last quarter), in a very defensive sector (healthcare/hospital), clean balance sheet, and a reputation for an excellent hospital operator. Given the current market conditions, a 12% return would not been too bad. Moreover, I believe the down side risk is at about $8.5, its recent low, while upside could go as far as $12 level. A defensive stock with very favorable risk/reward ratio.
Trust sector has been under a lot of pressure lately due to the raising rate. Could Bank of Canada's decision to stay put this morning be a catalyst in the near term?
le and currently yields at just a bit north of 12%. I did not think the decline is warranted. The trust's results have been rather healthy, payout ratio stable (89% last quarter), in a very defensive sector (healthcare/hospital), clean balance sheet, and a reputation for an excellent hospital operator. Given the current market conditions, a 12% return would not been too bad. Moreover, I believe the down side risk is at about $8.5, its recent low, while upside could go as far as $12 level. A defensive stock with very favorable risk/reward ratio.Trust sector has been under a lot of pressure lately due to the raising rate. Could Bank of Canada's decision to stay put this morning be a catalyst in the near term?
posted by ZIGZAG at 7/11/2006 08:16:00 AM
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