Wajax Income Trust

Today I purchased shares of Wajax Income Trust (WJX.UN) which meets one of my value screens.

Wajax Income Fund is a leading Canadian distributor and service support provider of mobile equipment, industrial components and power systems. The Fund was created to indirectly invest, on June 15, 2005, in substantially all of the assets and business formerly conducted by Wajax Limited.

Wajax has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, power systems and industrial components, through a network of over 100 branches across Canada. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

My average cost per share was $34.06. Wajax has had increasing return on equity (ROE) for the past three years, has had increasing revenue for the past three years, is reasonably priced and increased its monthly payout to $0.33 ($3.96 annualized) for a yield of 11.6%. Today's closing price of $34.03 is 9.1% below its July high of $37.45.

The weakness of the stock price is the result of overall market decline plus news that earnings in the past quarter were a little weak. Had one-time items not been included, Wajax's earnings per share would have been marginally better than the same quarter in 2006.