Custom Direct Income Fund (CDI.UN.TO)

An unusual income trust in that 100% of its business is in the US, so won't be taxed under the new legislation. Produces cheques for individuals and companies. Average household writes 20 cheques a month versus 2 in Canada. Payout ratio is pushing 100%.

Currency conversion directly affects their free cash flow from US to Canadian dollars. Payout ratio is over 100%. Have done a good job of mitigating a very difficult change in currency.

Competing in a direct consumer market in the States. They are not the dominate player in the states and have to follow along with what "Direct" does as far as setting prices etc. Can be quite volatile.

They have a long-term hedge in place for currency. Payout ratio is a little higher than he likes. Has been beaten down, but not sure why. This is reasonable value.

Likes their strategy of putting logos on cheques. A lot of exposure to the US$ has created a broad sell off. Pays a pretty good yeild.

Could have potential risk if legislation is changed regarding taxability of US domiciled businesses. Has a lot of competition. Prefers others.