Teranet Income Fund

TF.UN-T

(A Top Pick Nov 8/07. Up 12.4%.) Acquired by OMERS.

(A Top Pick Nov 8/07. Up 12%.) Acquired by Borealis at $10.25.

Quality company. Leveraged to Ontario real estate and will be impacted by a slowdown in this market. Borealis made an offer of $11, which has been reduced to $10.25 and will expire on Monday. Thinks the deal will go through.

Cash flow has been fairly steady. It deserves a bit of a premium. Are being bought.

(A Top Pick Nov 8/07. Up 17%.) Electronic land registry business and have a monopoly until 2017. Huge growth opportunity in health records where they have just started to scratch the surface. Trying to be acquired by Borealis.

Market is concerned about declines in transactions in Ontario but also register mortgage renewals, re-financings, etc. Developing a database management system for the Ontario hospital system. Distribution is safe and is a possible takeover target.

Involved in Ontario land registration. Some concerns about slower real estate transactions but there are still a lot of transactions as mortgages renew. Diversifying into health care. Have a monopoly until 2017. 70% payout ratio.

(Market Call Minute.) Land Registry office for the province of Ontario. Great technical capability.

(A Top Pick Nov 17/06. Note change.) When it converts over to a corporate structure, it will be able to maintain its level of distribution. A fabulous target for private equity.

(A Top Pick Dec 15/06. Up 15.3%.) A defensive play. Slower growth, but very stable. Has a monopoly on the property licensing in Ontario. Distribution is very safe.

Provides the land registry in Ontario. Have a monopoly until 2017. $87million cash on the balance sheet. Expanding into other services such as hospital billing.

Have a monopoly on the land Registry system in Ontario. Decent value at this price. Yield is sustainable over the next couple of years. Will give you slow steady growth.

Good fundamental story. Pretty much has a monopoly position in providing services for land Registry in Ontario. Not a ton of growth, but very stable. Low payout ratio. North of $10 it is fully priced.

Dec 15,2006 Then $8.85 Had been a bit beaten up, and the valuation hadn't come back. A boring stable business. Not a lot of risk to their distributions.

Have a monopoly on land Registry in Ontario. Good business model. Try to buy at $9.75 or below.