Millionaire's Choice: a Mountain of Cash for ..

I'm Roger Conrad's publisher and last week I asked his Canadian Edge readers,"how are the trusts working for you?"

Nothing prepared me for the incredible response – it's clear that Roger's income trusts are doing a lot more than funding a mountain of cash for retirement.

One reader even said that Roger's trusts were sending a whole farm community's kids to college!  This is just another reason why we call Canadian Edge the "Millionaire's Choice" around here at KCI.  In fact, Roger's top five performing trusts are up 41.8%-73.7% since January 1, 2008.  Need I ask you to compare that with the S&P?

As one of our nation's most trusted income investing voices, for 20 years now, Roger tells you below how Canadian trusts can give you can get 16%+ yields. Canadian trusts are especially attractive to U.S. investors these days as the soaring Canadian dollar adds more profit to the highest yields on the planet. Plus, Roger gives you other ways to profit from rising oil prices -- these are great investments you won't find even footnoted in any other advisory.

Walter Pearce, President, KCI Communications

Millionaire's Choice

by Roger Conrad, May 3, 2008

Remember when investors could retire and live well? When you didn't have to worry about losing your shirt before the closing bell?

That way of life may seem like a bygone. But this letter is going to bring it all back and more, courtesy of the Canadian government. I'm talking about Canadian Income Trusts – with the highest (and safest) yields on the planet – up to 16% plus.

So why would you settle for 2% yields from the S&P?  Why, when you can have 5-8 times that, and with as safe an investment as I've ever seen?

Ordinarily, I'd be suspicious of any investment that was such a giveaway.  But I assure you, Canadian business trusts are for real.  And US investors are finding that Canadian trusts with their steady yields are a perfect antidote to the S&P!

In fact, it's written into Canadian law that nearly all the earnings from a trust business must flow through to the investors … which means YOU. You don't need to settle for the crumbs we call "dividends" here in the US.  And right now, the safe, high-yielders in our portfolio are the best value out there.

Canada's red-hot economy and rising dollar have SO much to offer you.  Plus, you get super-sized yields and monthly checks.  I ask you: what else could you possibly want from an investment right now?

Here's the best news: some Canadian trusts are yielding windfall profits to their investors. But first, please allow me to explain how this solid gold egg landed on our plate ...

THE TIMES I LIVE FOR: SOME OF THE BEST-VALUE, HIGH-YIELD INVESTMENTS OUT THERE NOW

Maybe you heard that Canadian finance minister, Jim Flaherty, proposed that some Canadian business trusts would be taxed the same as ordinary corporations (6.7% tax average paid), beginning in 2011. It set off a firestorm of fear and some investors swore off Canada entirely.  Forever!

That's the kind of wild emotion value guys like me live for, when the opportunity is so clear you can taste it.

It's now 2008, and the 48 Canadian Edge portfolio trusts are still growing double-digit dividends. And right now, these rock-solid businesses are the best value buy they've ever been.

We have plenty of other reasons to be optimistic about these steady, predictable, cash-generating investments (aside from the obvious: Canadian Trusts are still the highest-yielders on the planet):

First, some income trust businesses will always be tax-exempt, virtually in perpetuity. (And when you read my newsletter, Canadian Edge, you'll certainly know which ones they are.)

For those trusts that could be subject to tax in 2011, the average Canadian corporation pays only about 6.7 percent of its income in taxes right now. At the end of the day, trusts can find just as many loopholes.

I think you see my point: It's hard to lose if you buy in now! Trust prices are still a bargain, giving you a great entry point and sky-high yields. The actual businesses underlying these trusts haven't changed a bit. Conservatively run, high-quality income trusts are as solid as ever, and I have no doubt they will prevail for years to come.

Most important: Even those trusts up for taxation will still be paying yields that dwarf your options in the Dow and S&P. Dozens of trusts now yield more than 10%, some as high as 17% and more.

MY READERS SOCKED AWAY WINDFALL PROFITS: YOU CAN, TOO

Right now, the opportunity with Canadian income trusts could eclipse anything we've seen before. In fact, the windfall bonanza is well under way, thanks to a group of cash-rich buyers who know when to buy: Global Capital.

Say what you will about the global capital giants who control an estimated $3 trillion in private cash now sloshing around the world. But these guys are concerned about one thing: The bottom line. And they're seeing huge potential up north.

Foreign capital was mostly shut out of the Canadian trust market for years. What's different now? Trust managements are willing to listen to offers, if the price is right. And with so few truly high-quality, cash-rich businesses around, foreign capital is paying up.

And while I can't make windfall promises for every trust in the Canadian Edge portfolio, I know you can see the huge upside in this for trust investors!
For example...

UE Waterheater is far from a household name in this country. But anyone who heeded Canadian Edge's buy recommendation on this trust raked in a premium of over 50 percent when Australian conglomerate Alinta bought it for $22 a share in cash—well above any price UE had ever traded for.

At the end of last year, my readers who invested in PrimeWest Energy were handed a 40% cash premium by a global capital suitor.  This bears repeating -- a 40% cash premium.  Now, that's something you can take to the bank!

We've already seen some three dozen private capital takeovers of trusts. Even the weakest trusts have reaped offers of 10 to 15 percent above market. Stronger fare have netted 20, 30 percent and more. And with so many cash-rich trusts still out there, we've only scratched the surface.

Foreign capital interest is only one of many reasons the best Canadian trusts will shine for investors. In fact, these takeovers are really just rock-solid confirmation of the kind of values that are out there—great, growing businesses selling on the cheap (but not for long.) Businesses that grow fast and share their good fortune with big, rising dividends to you and me.

My staff and I keep our focus on buying and holding trusts backed by high quality, growing businesses. And that, my friend, is how we're going to keep building wealth for you, and well past 2011.

CANADIAN TRUSTS: SHORTCUTS TO EXPONENTIAL GROWTH

You may wonder why Canadian trust managers love paying you monthly checks with yields up to 16% and more.  It's very simple.  Paying you high dividends is a lot better than paying interest on debt. Everyone profits; investors handsomely:

• Enerplus Resources was worth just $9 million at its start 19 years ago, yet now is worth $6.2 billion. Considering that it has returned 85% of its earnings to shareholders (which Canadians call "unitholders") in the meantime, that's incredible growth.

• During the last four years, the share price of natural gas retailer Energy Savings Income Fund has more than tripled, because of 27 hikes in its dividends ("distributions"). And even after this rocket ride, it still yields 10%.

• In the last three years, Arc Energy Trust buyers have seen their opening ante grow 219% while their dividends have soared also. That's what I call "playing both sides of the street."

• It's not only energy sector trusts that have made the big gains. For one instance, RioCan, a hotel trust in the REIT category, has awarded its unitholders an 18.98% annual return for the past 10 years. Compounded, that's a total of 461%. And in the meantime, its dividend has nearly doubled.  (Not to worry: Canadian REITS are unfettered by silly lending and were the top performers in the last 12 months.)
       
• The few trusts that have been around for a decade or more have produced some breathtaking gains. Take Vermilion Energy Trust. Since its inception in 1994, it's up an astounding 20,174%. That's 202 to 1!  The original unitholders have seen each $10,000 investment explode into $2,147,000, not including dividends!

SAFETY IS MY MIDDLE NAME

Canadian income trusts are not inherently risky. As a rule, they're even less volatile than American blue chips.   
          
Safety is my middle name.Your wild profits will come from tame Canadian trusts. No 10-1 long shots. No new trusts. You simply don't need risky investments when you're safely getting double-digit distributions plus possible high appreciation.

I've built my career around finding high-yield dividends. For 18 years, I've edited Utility Forecaster...without one losing year in my income portfolio. I've written books and lectured around the world on how to get rich without gambling on speculative stocks. And in all that time, I've never seen dividends this high and this safe together.

For you, it's a once-in-a-lifetime opportunity. I'm not trying to rush you. I never rush anyone. I'm just saying, don't wait for the next bus because there won't be one; Canadian trusts are a unique event. Consider soberly what I'm saying, but please don't dally with your subscription. You know what happens to things we dally with!

PROFIT FROM RISING OIL PRICES WITH THE "HIDDEN" CANADIAN TRUSTS

If you're looking for ways to profit from obscene oil prices, here's another one: Like the proverbial "middle child", the midstream energy sector (natural gas liquids) was mostly ignored by investors.  But that's starting to change now, thanks to the relentless run-up of oil prices.   

Allow me to explain ….
The processing of natural gas into liquids (NGLs) like ethane, propane and butane has buoyed the profits of natural gas trusts lucky enough to have gas-processing assets. Why?

Because the price of natural gas liquids marches in lockstep with the high price of oil!  As oil prices climb, so do propane and butane! And with the price of oil hovering near the outer stratosphere, investors want to know how to climb on board and profit from the juicy midstream-asset trusts.

We're seeing payouts of at least 14% protected by sound businesses that are selling products the world cannot get enough of.

There's one trust with both midstream (natural gas liquids) and upstream (oil) assets that really stands out right now as a great buy opportunity for you.  And here's why:

Most of their US business is held under an energy partnerhip that raised so much cash with their IPO that their parent "adopted" more assets five months ago. They scooped up heaps of oil, gas and midstream assets in Michigan, Indiana and Kentucky.  This should spur steady, rich revenues because this midstream asset comes with long-life reserves of 19 years!

This energy trust's new US investments are a HUGE plus for your long-term returns.  You see, US-based income will be EXEMPT from any trust taxes in 2011 and beyond. The more this trust grows their US business, the higher its post-2010 distributions will be!

COME, BEAT THE BEAR WITH US!

In 2007, a sad year for US stocks, Canadian trust investors had a lot to smile about.  The Canadian Edge portfolio held 23 trusts the entire year. Out of the 23 trusts, 17 gave us a total gain of at least 15% or more!

In that time, both the S&P 500 and the Dow fell miserably. What a wretched performance compared to the solid gains in our portfolio! (And, if we can perform like this in a "bad" year, just think what we can do for your gains in the future.) Every one of our current holdings is in the black. Our energy trusts are already posting huge gains, some up over 70%; and since they're still value-priced, there's lots more upside here if you get in now.

Most of our readers don't hold our entire portfolio. They cherry-pick, which I think is just fine.

If you're a little hesitant about "Exactly where do I start?" then you can just go to my monthly column entitled, Highest Yield of the Month.

It will give you the one or two conservative Canadian trusts that are currently throwing off the biggest monthly distributions.  Here are three trusts I recently profiled in Highest Yield of the Month that should give you heaps of appreciation (and right now you can still buy them at a bargain rate!):  

A high-yield oil investment that's still a value!

This royalty trust, always one of the premium oil and gas trusts, is even more of a powerhouse now.  It's sitting on one of the biggest puddles of oil anywhere -- tons of oil sands reserves!  Plus, this trust boasts ...

1)    a whopping  market capitalization of CAD 6.5 billion
2)    one of the lowest debt-to-cash flow ratios in the business at roughly 1-to-1, as well as a rock-bottom debt-to-assets ratio
3)    operating costs are expected to fall, increasing profits
4)    outstanding synergy opportunities in shallow gas drilling and capital to develop their coveted oil sands reserves!

Plus, this trust gives you  a combined reserve life (based on proven reserves) projected at 9.9 years, handing management real flexibility. And need I add, given the price of oil these days, foreign capital suitors have shown a lot of interest in their extensive oil sands!

Make me a match: a rainmaker's trust

Another trust in my recent Highest Yield column is a capital trust that's reaping a tidy fortune by playing a different side of the merger game: facilitating deals.

They've got some of the best and brightest dealmakers in the business. And the trust does not guarantee salary for the rainmakers, keeping down overhead and a powerful incentive to keep moving.

What I especially like about this outfit is their dynamic growth engine, an innovative and solid capital fund.  The fund has committed more than CAD2.5 billion from high net worth clients, forging a major Canadian film company and most recently, a life reinsurance company.

And the results?
1.    The fund boosted distributable cash flow an astronomical 60% on a 67% jump in revenue!
2.    Return on equity (3rd qtr, '07) is 50%. PLUS, the trust issued virtually NO new debt and increased outstanding shares by only 1.3% over the previous year.

Clearly, their strategy is paying off, giving unitholders plenty to celebrate!

Carbon-neutral profits

There's another trust that's looking very interesting these days.  Its core business is carbon-neutral power production and its parent company is a solid Australian Bank.  The trust's cash flow is further enhanced by an indirect investment in a long-term care facility.  Fourth quarter and full year 2007 earnings were stellar. Revenues surged 36.4%, reflecting great plant performance in wind, hydro and biomass power stations. Cheap, high-yielding and solid, I'm recommending this trust as a buy up to USD12.

By all means, you can start modestly. Get a feel for your trusts. Then add on. You'll soon find yourself skipping to your mailbox.

YOU CAN BEAT WALL STREET WITH ONE HAND TIED BEHIND YOUR BACK

The U.S. stock market has historically given total gains (dividends plus growth) of 9% a year. Some of the Canadian trusts I cover in Canadian Edge are offering you twice that...just in dividends! Any capital appreciation is gravy on top of that.

And you'll have less risk than with blue chip stocks! Now, I don't usually joke about serious matters like this, but nobody comes even close to matching our portfolio record for Canadian trusts. Canadian Edge is indisputably #1 in our field. That's because there is no #2!

Yes, that's right. We have the only service devoted to giving Americans advice on Canadian trusts...and I don't think that will change anytime soon. I have too much of a head start on the field.

For instance, my website gives you a live feed of trust prices from the floor of the Toronto Stock Exchange. It has a fast (15-minute) data turnaround, which is pretty good...and it's all converted into U.S. dollars. But here's the clincher:  Nobody else is offering any accurate trust data feed to U.S. residents at all! (And they won't do it in the near future, either; I've got an exclusive agreement with the only firm in Canada that produces good data.)

Frankly, few of my readers are interested in following the trust markets that closely. Mostly, they're delighted just to find a set of investments that will let them relax, check their holdings every week or two, and stroll out to the mailbox once a month to collect their distribution checks. It's a lifestyle. (And it's focused more on golf and tennis than live data feeds!)

But here's my point: Canadian Edge is now the 900-pound gorilla in the income trust field, and it offers you everything you could want, whether that's more playtime or an exciting, intensive way to multiply your money.  In fact, my readers' profits have been so astounding that around here, my newsletter is called the "millionaire's choice"!
 
THE GREATEST INCOME INVESTMENTS IN THE U.S. ARE ALL IN CANADA!

While U.S. stocks bounce wildly, most of our select trusts keep steadily increasing their distributions. That means their values rise. That's why each month I give you a fresh "buy up to" price for every trust I track.There's not one nook or cranny of Canadian Edge where you'll find any cobwebs. Some other factors worth considering:

• Some of the best Canadian trusts aren't sold on U.S.exchanges. But when you join, I'll show you how to buy them right here anyway!  Painlessly! Basically, Canadian trusts are easy to buy, and they give you instant liquidity.

• You don't need a long, white beard to buy trusts. Like stocks, some are conservative and some are aggressive. But overall, studies show that Canadian trusts are safer and less volatile than stocks.

• Many investors are waking up to find their cash cows up 30% or more in a day as Foreign Capital firms realize the true value of trusts.

NEVER LOST, NEVER LATE

You'll never have an issue of Canadian Edge get lost in the mail: it's strictly Web-based!

And how do you know precisely when Canadian Edge comes out each month?
I'll send you an e-mail the second I post it online.

If you happen to be too busy at the moment, no problem. My e-mail itself will give you a quick overview of this month's Canadian trust scene. It will also give you some one-click hyperlinks that take you directly to whichever part of Canadian Edge you want to jump to. You'll discover a wealth of precise advice on www.canadianedge.com, including numerous "inside information" articles and special reports. 

Enroll for a year (or quarterly) and get the following three reports:

>>>Energize Your Cash Flow: Five Oil and Gas Royalty Trusts

>>>Getting the Business:  The Four Best Business Trusts You Can Buy Now

>>>Power Plays: Four Power Generation Trusts to Buy Now

If you enroll for two years, you'll get three more bonus reports:

>>>Building Wealth:  My Four Favorite Canadian Real Estate Trusts to Buy Now

>>>Money Flow: Canada's Two Best Pipeline Trusts    
    
>>>Best Two Income Trust Mutual Funds to Buy Now

Many readers do join for two years because it locks in the lower, introductory rate.

You might also receive an e-mail Flash Alert once or twice a month if a major trust news story is breaking. But my alerts are designed to lower your blood pressure, not raise it. This is no traders' letter. In actual practice, you'll likely hang onto your average trust about a year or two. I simply want to keep you up to date.

To get you started on the right foot, I'll point you to our comprehensive Canadian Edge Subscriber's Guide. This handbook tells you everything you wanted to know about Canadian trusts. More important, it spells out how to use this service to make serious money.

IN A CLASS BY OURSELVES

I realize a few Wall Street gurus have jumped on the Canadian trust bandwagon, but none of them have a proven record of profits anywhere close to ours. And none of them track Canadian business conditions, regulatory changes, tax issues, ownership restrictions, currency exchange trends, payout ratios, payout histories, new shares issued, debt levels, and proven oil reserves. Trust me, you really don't want to monitor these issues by yourself!

Hire me as your guardian angel, and I'll protect you from the pitfalls of income investing. In contrast with ordinary angels, I'll even try to answer your e-mails promptly. I've done so for 20 years, staying in touch personally with over 25,000 subscribers to Utility Forecaster, and I'll continue that pledge for you.

In fact, my publisher will make that $99 a quarter, about the  same price, but a bit more painless. A good half of our new members are choosing to have a $99 auto-renew on their credit card every three months on a 'til-cancel basis. That's the only sure way of locking in the price long term. Everybody else will be subject to yearly price hikes.

And thanks to our convenient quarterly billing option, Canadian Edge is getting an unheard-of 85%–90% renewal rate. That speaks oceans, doesn't it? Apparently a lot of people like making seven times the S&P!

My publisher does have a 90-day 100% money-back guarantee, but it's seldom needed. Cancellations are a rarity around here.

• To start your one-year subscription to Canadian Edge, that's12 issues, email alerts, special reports, 24-hour online access to your website and my personal email address, ($399/1 year.

• To join for two years, with all the benefits above plus three more wealth-building reports ($729/2 years), .
    
Still not sure?  Try my quarterly option, 3 months of Canadian Edge for $99 on a 'til cancel credit or debit card basis. You get all benefits, the three special reports and you may cancel up to 90 days for a 100% refund.  To try the quarterly option, .

So, if you want sustainable high yields in 2008, up to 17%, look to Canadian trusts.  No matter what happens in the S&P, you can collect fat monthly distribution checks and relax a little, if you like. The steady, high yields from the best Canadian trusts are stepping up and U.S. investors get an extra bonus from the soaring Canadian dollar. Some growth sectors in the U.S. may be fatiguing, but the robust Canadian economy keeps Canadian trusts handing supersized yields to investors.

So subscribe now and download your free reports today. You'll never go back to your old life. Fat monthly checks are terribly habit-forming!

And with our full guarantee, you're not risking a penny. So the only question is: Are you ready to move up to somewhere in the neighborhood of 40% total profits a year?