Sandy McIntyre Arriscraft International Income Fund AIN.UN-T DON'T BUY Jul 28, 2006

Manufacturers of brick. The beauty of this is that they came out at $10, cut their distributions and the stock went to $3.50. They were in trouble and the banks pulled their lines. They were probably going to file for bankruptcy as they needed $16 million but then the family that sold the business to the trust, gives a subordinated debt to pay off the bank. Just replaced management. Dirt cheap.

A lot of problems here. Really jammed up the revenues when they went public. Showed a lot of growth elements and got priced that way. Earnings went to zero and they had to cut their distributions.

Has been a disappointment. A classic example of a company that increased production, but not sales. They make a great product.

(A Top Pick Dec 20/05. Down 21.5%.) Had sold this at about $7 for a profit.

Specialty stone, brick, limestone etc. Have restarted distributions and the yield is about 8.5%. Have a debt level that is not in the danger zone, but to high for him. They are also using a lot of money to update their Georgian plants. A void until the debt level is a bit better.