GCI-UN.TO - Buy

Chart of GCI-UN.TO as of Sept. 18, 2005

Purchase Price
$17.65 Cdn

Company
GATEWAY CASINOS INC FUND
GATEWAY CASINOS INCOME FUND is an unincorporated open-ended limited purpose trust which indirectly operates the Burnaby Casino, the Palace Casino and the Lake City Casinos. (i.e. Alberta and British Columbia)

Reason
The distribution is reasonable at $1.34/annually (or 7.6% at the price I bought at). I assume they don't carry a ton of debt, even though they do need to build lavish facilities to attract the gamblers. I like the market they are in...British Columbia w/ the asian market, and Alberta, with the booming economy. They almost have a 2-yr. track record which actually featured a dividend boost already.

Risk?
Risk is medium. The most obvious threat to me would be competition from other operators, and of course, rising interest rates.