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(B)(N) T Telus Corporation

January 26, 2013

Deal Book. Telus Corporation provides wireline and wireless services across Canada accessible to more than 95% of the population. It’s been in the Perpetual Bond™ continuously and without drama since $30 in 2009 through the current $65 for one reason and one reason alone – the ambient stock prices appear to be above the “price of risk” as estimated by the Risk Price (SF). (Please see Exhibit 1 below. Red Line Stock Price (SP) above the Black Line Risk Price (SF).) It also pays a stock dividend of $2.56 per share or more than $830 million a year to its shareholders for a current yield of 3.9% which is more than comparable to the rate of inflation.

In contrast to these services, the hedge fund Mason Capital Management LLC provides us with an inspiring picture of the Brooklyn Bridge linking the Borough of Brooklyn to Manhattan in New York City on its one page website that may be of interest to US investors with no less than $5 million and preferably more than $25 million to spend or invest.

The Bridge is not for sale, of course, but investors may be inspired by the safety and boldness of the Bridge passing from home to Wall Street to confuse the primal necessity of 100% Capital Safety and a hopeful return above the rate of inflation in our investments with the alternative of  “adventure investing” in the pursuit of a lot more, a lot sooner, by gambling on a safe passage. Please see any of our Posts on Hedge Funds Bushwhacked by Volatility or The New Voodoo in Investment Theory, January 2013.

For example, in a case of high drama and an oddly maternal complaint Mason Capital Management LLC has recently stood down (Reuters, January 25, 2013, Telus, Mason settle dispute; share plan to proceed) from its claim and litigation that the non-voting common shareholders of Telus’ Class A stock which is only listed in New York should receive less than one ordinary voting common share of Telus stock for each share that they own because, they argue, “the ordinary common shareholders” paid more for them in the first place (CNW, Vancouver, January 25, 2013, TELUS to complete share exchange Non-voting shares will be exchanged for common shares effective February 4, 2013).

Even more funny is the apparent conjoining and opportunistic position of Mason Capital Management LLC – which is said to have held 19% or $4 billion of the voting stock in early 2012 but has since sold most of it – in simultaneous long and short positions in Telus voting and non-voting shares and thus stood to benefit if  the spread between the two classes of stock widened, providing a benefit that would be paid for by the largely US owners of the non-voting shares which would then be worth less in an exchange that would appear to be ordered by the Supreme Court of British Columbia. Which, of course, it wasn’t and we would not expect otherwise.

Exhibit 1: (B)(N) T Telus Corporation – Risk Price Chart

(B)(N) T Telus Corporation

Telus Corporation is a leading national telecommunications company in Canada that provides wireline and wireless services in a nation-wide network that connects 95% of Canada’s population to its millions of customers.

(Please Click on the Chart to make it larger if required.)

Subject to the conclusion of the share exchange pro rata one-for-one, Telus’ voting shares are expected to trade on the New York Stock Exchange for the first time in February.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
“Alpha-smart with 100% Capital Safety and 100% Liquidity”
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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