Andy Willis of the Mail and Globe got it wrong again in his article today about BFI’s reversion back to a corporation. Andy describes BFI as having “proven skills at turning garbage into cash”.
Meanwhile Andy has proven skills at turning facts into garbage with his statement of:
“In a sector that's consolidating, BFI is effectively blocked from doing large takeovers - which means acquiring additional garbage dumps - due to the two-year-old federal tax rules on trusts.”
Andy darling. Do you even know what you are talking about when you put pen to paper?
There is nothing “effective” about BFI ‘s being “blocked from doing large takeovers”. You are truly remiss. Flaherty’s legislation EXPLICTLY prevents BFI from doing large takeovers. Slight difference!
BFI’s growth in being artificially constrained by Flaherty and those mindless minions in the Department of Finance under a set of Central Planning Politburo rules known as the Capital Insertion Rules that severely restrict the ability trusts like BFI from doing “large takeovers” or growing at their historical rates of growth. Apparently someone in Ottawa thought that was a good idea.....certainly not in keeping with “leveling the playing field”
It appears at the time these Capital Insertions Rules were put in place to EXPLICITLY restrict the ability of BFO to grow, namely October 31, 2006, there was another set of rules put in place at the Mail and Globe, called the Bogus Information Insertion Rules......these rules apply to all articles written by the Globe on income trusts.....only maligning and misleading information is fit to be printed, lest the truth emerge about the gross incompetence of Jim Flaherty and his CTV Bell Globe Media friendly bespoke tax policy.
Tuesday, August 19, 2008
Andy Willis gets it wrong.....once again
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4 comments:
Is everyone working at the Department of Finance a certified blockhead--can they not see what their new rules have done to income trusts.
OR
This is exactly what the wanted in the first place , which is probably right.
The squishing sound you hear is the noise made when the small investor has just been run over by the enormity of the gov`t action.
As my MP said to me , we were just collateral damage.
That must be an acceptable result in the eyes of the powers at be since they have berated us & told us to get lives & to move on.
We will see.
Dr Mike Popovich.
What Andy Willis might learn if he talked to reputable Bay Street analysts
Brent:
You might want to tell Andy that the US market doesn’t really have a trust market. And the MLP market is miniscule compared to the size of the growth-equity component. And for ten years the returns on the S&P 500 have been dead flat. Zero returns. How would you like to have only risk-taking growth stocks to choose from if you were a US investor? More like wealth-destroying growth-myth companies.
The Canadian stock market is loaded up with commodity stocks in an up-cycle. Yet it barely grows at 8% per year over time. It’s already down 5% this year, versus the trust index which is up over 7%. What happens when commodity prices stop going up?
Central Planning Politburo rules...
Stalin would be soooooo proud.
BFI lost $550,000,000 in capitalization from Flaherty's Hallowe'en massacre announcement up until Monday. After they announced they were effectively being forced to convert to a corporation by the clever Finance minister, today they lost an additional $275,000,000 in capitalization. But Andrew Willis thinks that this "Conversion should mean moving back to a position of strength." Oh yes and let's not forget the $125,000,000 that BFI paid annually as distributions when they were a trust. Where are those taxes gone?
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