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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75794  
Subject: Re: ETS PAYPHONES Date: 8/23/1999 11:24 AM
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There are listed on the New York Stock Exchange a group of high yield investments known as trusts or partnerships. Many pay high yields--10 to 20%. I suspect Payphones is one of these.

The trick that makes the high yield possible is that instead of owning a portion of the asset, you own only the rights to the income from the asset for a fixed time frame.

Experience with this kind of investment is that they are very high risk. Some do consistently pay high dividends and if you successfully hold them long enough and then sell at the right time you can get excellent yields.

However, at least half do not perform as expected. Then the share value drops suddenly and because you own no real assets, the propects of recovery is low.

It is easy to lose your investment with these vehicles. They are not recommended, especially for the retired.

An absolute must is read about them in the Standard and Poors reports (available in most libraries) before you buy. Many have trap doors and booby traps (like guaranteed dividends for x years) that can make for nasty surprises. Expiration dates, and conversion rights to other entities can also be important.
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