MMP.UN - Precious Metals and Mining Trust

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esentrik
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MMP.UN - Precious Metals and Mining Trust

Looking to buy some shares. Wondering what my fellow Turdites think of this one.

http://sentry.ca/en/products/structuredproducts/pmmt.html?fundId=155

http://www.google.ca/finance?q=TSE:MMP.UN

Edited by admin on 11/08/2014 - 06:15

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esentrik
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High yield

Forgot to mention that dividend distribution is monthly, and at current prices yields about 15% a year. Pretty good...right?

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Eric Original
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Looks OK to me

Keep in mind that none of the holdings in the trust actually pay a dividend, so when you receive a monthly "dividend" you are really just getting back part of your own capital.    I would expect the payouts to fluctuate up and down with the gains or losses in the fund.  In other words, don't count on that payout.

Beyond that, I don't really see a problem with the trust or it's holdings.  I'd expect it to perform similarly to the GDXJ here in the States.  (no idea if GDXJ trades in Canada)

Here are their latest holdings

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Irksome
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Looks a bit like GGN

I have held GGN for a little while, and I recently added to my position when the share price dropped.  Similar to MMP, it has paid out consistently for years at $0.14/month (which on Friday worked out to 12% annually) for many years.

I'm glad you posted this, I'm considering getting in as this would provide return as well as some Canadian dollar exposure.  

The volume is a bit low, but it's not zero.

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US trading symbol

I worked this for a while, and I think I finally found a way to trade this from a US account.  MMP-UN.TO gets you the info in Yahoo Finance:

http://finance.yahoo.com/q?s=MMP-UN.TO%2C+&ql=1

I cannot find that in my Scottrade account.  But I searched and searched, and found PMMTF.PK:

http://finance.yahoo.com/q?s=PMMTF.PK%2C+&ql=1

I believe, though I cannot prove, that this is the same company, listed as a pink sheet in the US.  Scottrade does carry this one, and when you compare the two you get a very close correlation:

http://finance.yahoo.com/echarts?s=MMP-UN.TO+Interactive#symbol=mmp-un.to;range=1y;compare=pmmtf.pk;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

And the dividend listed in Scottrade matches.

I think the differences are due to currency exchange rate differences plus the extremely low volume of PMMTF.PK.  I bought 500 shares, and I used the MMP-UN.TO quotes to frame my limits.  The quoted value for PMMTF.PK was from several days before (no trades for a couple days), but the limit hit when the MPP-UN.TO dropped down to my limit.

Long story.  But I got it at $7.14 USD, and the ex-div date is Tuesday, payout scheduled for June 15, and Scottrade shows a 16% annualized dividend at the current price of $7.24.  If it proves out I may add a little more, it makes a nice complement to GGN.  $0.10/month for PMMTF.PK, $0.14/month for GGN, nice little revenue stream with a small price upside on increasing metals value.

Thanks again for pointing it out, esentrik.

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