Google Partner … 18% Yield? Roger Conrad

By Travis Johnson, Stock Gumshoe, January 16, 2009

“This Google Partner is just one of the 18%+ high-yield trusts you can snap up now.”

This ad comes in from Roger Conrad for his Canadian Edge newsletter, one of several from the great KCI marketing machine that, like almost every other major financial newsletter publisher, is headquartered a stone’s throw from the stunningly opulent and energy efficient Stock Gumshoe central office.

I have yet to run into Roger Conrad at any of our 1,100 Starbucks locations, but if I do I’m sure he’ll talk my ear off about the great opportunity available in Canadian Income Trusts (also called Royalty Trusts and Business Trusts). And this is a teaser for another one of those.

His newsletter will run you about $400 a year … the answer to this teaser? Priceless. Just read on!

“… nothing prepared us for the surge in returns that these trusts are showering on our readers now. And at the pace these trusts are moving, we should see returns up 100%, exactly double, on our favorite picks before the year is out.

“And these cash-rich trusts are still a bargain. Share prices, mostly beaten down last year, are still below our buy targets, so you’ve got a great entry point. And with yields up to 22%, there’s just no way you can miss.”

That’s how Conrad starts us off … then he gets into some of the specifics of this particular trust that he thinks we should buy. And, if my email load is an indication, this one is the pick that really caught the attention of my readers …

“This Google Partner Pays You 17.6% (Google Pays You Zip)

“How can two turbo-charged companies in the same web business have such a different way of rewarding investors (or not?)

“Like Google, this trust is a runaway, internet-based success. Unlike Google, this company pays you a monster-sized yield of 17.6%!

“This trust is Canada’s undisputed leader in online media with over 20 web mega-sites and 200 ‘publications’. Its four top brands help consumers find everything from jobs to homes to apartments to cars — to the best shopping bargains around.

“And they’ve just inked a spanking new deal that’s sure to please both consumers and small businesses alike — and send their ad revenues through the roof — yet again.

“Many boutiques, restaurants, clinics, hairdressers, retailers, service outfits — you name it — do not have a website … with this new trust venture, any small business can convert its print sales material into a search-optimized web presence!”

Some specifics, perhaps?

“Their internet revenue alone surged a whopping 38.4% in the third quarter, not counting their expansions!”

Conrad thinks you’ll see a 20% dividend in 2009, and that the shares will double in less than nine months. So what is it?

Feed all that into the ‘ol Thinkolator, which is admittedly a bit squeaky after our latest cold snap, and after warming up for a few minutes we discover that this is …

Yellow Pages Income Fund (YLO-UN in Toronto, YLWPF on the pink sheets.)

Unlike some pink sheets shares there is at least some volume, so the prices ought to be a pretty close match to the Toronto shares, just make sure to check the current currency exchange rate before jumping in if you go that route (yesterday the units closed in Toronto at C$6.46, and closed on the pink sheets at $5.17 — that’s within a penny as of the last exchange rate check I made).

What do we know about these folks? The T