April 21, 2015 (9:15 am eastern)

Markets were strong on Monday.

Boston Pizza Royalties as down about 1% to $21.30. I was perhaps over-zealous buying into the recent rights offering at $22.10. But it was as high as $23 before the rights offering and with the planned distribution increase of 8% I suspect it will return to the $23 range assuming that interest rates stay low. It seems like a reasonably secure source of yield. At the moment the number of unit holders has been increased and some of the new owners may be disappointed by the decline and therefore inclined to sell. This creates a temporary selling pressure.

 

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