Ravi Sood
E. D. Smith Income Fund
JAM.UN-T
DON'T BUY
Oct 14, 2005
Has dropped with other trusts and is around its issue price. Has exposure to US$ currency. Some growth to the story, but because of the US exposure and being near 100% payout ratio, It's probably fairly valued.
Stock has had a rocky ride with concerns on its payout sustainability. Not out of the woods yet. Made a significant acquisition recently. Payout is over 100% for 2006 and this is not sustainable. Over the longer term, they do have a lot of sales growth.
Doesn't fit his criteria for picking small cap trusts. There is not the year over year growth that he would expect. However, it has a strong brand name and there is stability. A conservative approach.
Has disappointed from its IPO. CEO resigned in the last several months. Have been hit by rising input costs. Payout ratio is too high and too much debt.