Canadian stocks rated by Iain Fraser

Big change in the U.S.

The unexpected Democratic victory in the Senate makes it a new ballgame. The biggest plus is that there will be a change in direction in Iraq. The emphsis will now get away from Mr. Bush's idiotic aim to create a strong central government;  an unachieveable goal.

The U.S. policy will now shift to strong regional governments and the withdrawal of some Allied troops. Thank heavens.

On the negative side is the possible re-emergence of protectionism; with the misguided Lou Dobbs leading the charge.

3 big bank stocks---3 just about perfect chart patterns

In our Report of Oct.24/06 we picked three big bank stocks. All three are undervalued; all three have excellent chart patterns; all three have broken out; all three have moved up; all three still have some distance to go to reach their technical targets. Valuable information.

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Energy Trusts--don't give up yet !

We had it right on Oct.15th; maybe we are still on the right track when we said the grace period should be extended to 8 years.

Now Marcel Coutu, CEO of the $13 billion Canadian Oil Sands Trust, says the grace period should be extended to 10 to 20 years. Bravo ! And the Energy Trust Association demands that they be heard. We think Mr. Harper will listen and agree !

Income Trusts--email the Prime Minister

As we said in mid October it was unlikely that Mr. Harper would accept the probability that the Corporations here would not have to pay tax if they chose not to.

But, the hundreds of thousands of Canadians who are now in a pickle, find that it total misery to see a sigbificant part of their capital vanish in two days. No one can be sure that these trusts will recover from present levels. We think they would have a good chance of moving back up in price if the grace period were extended to eight years and the extra tax loss to the government would not create serious damage.

Maybe the gov't read our blog on the "BCE Income Trust"

Our view on Oct.15/06 was that the average Canadian would resent the fact that Corporations could, and in many cases, would  pay no tax.

Income Trust changes !

We suspect the government will have some amendments to add to their new policies on income trusts. For those, especially seniors, who have substantial holdings in energy trusts, today was catastrophic; these trusts went down 26% ! Maybe the four year delay will be extended to six, or even eight years.

From the governments point of view the essential point is that there likely will be no new trusts; the tax losses so far are moderate and they will not increase. Why penalize those who have already commited to the trusts ?