Tuesday, August 19, 2008

BFI: Halloween revisited

In today’s government induced market meltdown, BFI Canada Income Fund declined the most in 22 months (hmmmm? that would be Halloween 2006 if I am not mistaken?) losing 17 percent to C$18.45. The income trust that owns a trash-hauling company announced plans, yesterday after markets closed, to cut the dividend and convert to a corporate structure.

The resultant loss of taxes paid to Ottawa from trust distributions otherwise received by Canadian tax paying investors will be exacerbated by the capital losses induced by this double punch exercise in fiscal insanity promoted under, of all names, The Tax Failure Plan


Anonymous said...

BFI Canada

What a great mundane business, a great Canadian success story.

BFI Canada could get efficient access to capital via the trust route, paid out taxable distributions, employed Canadians, now it will eventually be all gone.

Why ?? because of one man .....
Mr Flaherty from Whitby.

Now ....how will a garbage company go to market, to efficiently access capital.

I have an idea for Jim Flaherty that will help BFI Canada.

Call a pension fund to take BFI private , leverage the balance sheet and layoff people.

Wow now that is great financial engineering and a great business model for our small and midcap mundane Canadian companies.

Or hey ... just list on the SGX exchange !!

I want an election


Anonymous said...

Maybe BFI needs to become a corp so it can do more R&D......and perfect new garbage collection techniques!

Robert Gibbs said...

Yup, Flaherty's goal was to "induce" BFI (and other transport-related trusts like Transforce & ATS) to perfect the particle scrambling Star Trek Transporter technology, so that Scotty could just "beam-up" or "beam-out" garbage and goods.

Unfortunately, the only particle scrambling being done is in Flaherty's head.

Dr Mike said...

Another proud Canadian moment brought to you by Hacksaw Jimmy & the rest of the minions at the Finance Department.

Say , I just had an odd thought , don`t these guys work for us , being paid with tax payer dollars which we were happily sending because we had distributions paid to us from BFI.

Since those have been killed & we are suffering capital losses , then there will be no more dollars to fund the pay checque---the well will have run dry---the train will have left the station--cuts will have to be made---the deadwood will have to go.

Bye bye Jimmy & the deadwood brigade.

I get warm & fuzzy all over when I think about stuff (only Canadians have real stuff) like that.

Dr Mike Popovich.

Robert Gibbs said...

And BFI units were trading around $29.00 before the Flatulence farted on Oct 31, 2006.

Yup, a nice loss of around 36% since that frightful witchy night.

Harper's & Flaherty's Income Trust Tax Trick...

Brilliant, just brilliant!

Anonymous said...


I hope the Liberals and green Party will focus on the :

1- Tax leakage from the takeovers
2- Access to capital
3- Income stream for non pensioners
4- the layoffs
5- the productivity of income trusts eg. CO2 drilling, CML healthcare, etc..
6- rule changes affecting the senior living trusts like Chartwell
7- Hotel reits
8- The Harper Lie

I am sure you can think of many more.