Q: I am looking at buying either ALA or ALA.r in my RRSP.
I have read your analysis on this matter and am not sure I follow it all. The receipts were issued at $31.00 and are redeemable at $31.00 should the deal not go through. They now trade at $ 29.65. If I buy the receipts ,I will collect the " dividend equivalent ". If the deals goes through ( which I think is likely), I will receive new shares.
It seems a "no brainer" to buy the receipts as you have a capital gain if the deal does not go through. The receipts seems to track the stock which seem to offer a buying opportunity.
What do you think? Thanks
Derek
I have read your analysis on this matter and am not sure I follow it all. The receipts were issued at $31.00 and are redeemable at $31.00 should the deal not go through. They now trade at $ 29.65. If I buy the receipts ,I will collect the " dividend equivalent ". If the deals goes through ( which I think is likely), I will receive new shares.
It seems a "no brainer" to buy the receipts as you have a capital gain if the deal does not go through. The receipts seems to track the stock which seem to offer a buying opportunity.
What do you think? Thanks
Derek