On March 2, cheque publisher and business service company Davis + Henderson Income Fund announced that it plans to convert to a corporation on Jan. 1, 2011, subject to getting necessary approvals. The company hopes to provide prospective quarterly dividends at an annualized rate of $1.20 per share after conversion. For the remainder of the year, the fund expects to continue providing monthly distributions of 15.33 cents per unit.
Between March 11 and March 25, just over a week after the conversion announcement, chief executive officer Robert Cronin bought 10,000 units in the public market at an average price of $17.53. We note that he also bought 12,000 units last September when the fund was trading around $14. There have been no signs of insider selling at the company over the past year.
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.