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Thursday, April 12, 2012

Investors, please meet David Aisenstat and The Keg Royalties Income Fund (KEG.UN)

I just completed another article on HubPages. My last one is about David Aisenstat, President and CEO of The Keg Royalties Income Fund (KEG.UN) and The Keg Restaurants Ltd. At first, I started doing research on David Aisenstat because he’s the ex-husband of Christina Kiesel, a cast member of The Desperate Housewives of Vancouver. The show aired on Slice, a Canadian network that I never heard before and unfortunately, I don’t have Slice in my cable package, so I basically wrote about stuff I cannot even watch and I am dying to see the show. The Desperate Housewives of Vancouver! Imagine the riches Canadian women living a “free” lifestyle with Botox, men and millions. Sound appealing? It does sound appealing to me! It’s so totally at the opposite of who I am that I cannot help it.

My Internet activities conduct me to read about multiple stuffs and lately, I start generating a great income. Nothing I can live on exclusively, but add to my dividend income, my online income is really helping me to pay off my minimal living expenses.

All this to say, I read about David Aisenstat because of the glamorous Christina Kiesel of The Desperate Housewives of Vancouver and I find very interesting stuff. Generally speaking, I am not very attracted by restaurants, but The Keg Restaurants Ltd. is one of those exceptions. First of all, the design of those Keg Restaurants is just so beautiful – from what I had been able to see online.

Following what, I conduct some search about The Keg Royalties Income Fund (KEG.UN). KEG.UN is so interesting. The 10 year-chart is very amazing, very sharp. I wouldn’t expect a restaurant chain to propose something this strong. KEG.UN went down during the 2008 stock crash, but it quickly rebounded and today, KEG.UN even exceed the stock value of the before 2008. Only very strong stocks are able to perform this way and its truly spectacular coming from a restaurant chain to show something like this. It’s almost breathtaking. And David Aisenstat by himself is a good looking man, despite being bold. But that has nothing to do with KEG.UN right? LOL.

The Keg Royalties Income Fund (KEG.UN) has a good dividend yield of 6.621%. The dividend distribution is monthly. Really, KEG.UN has everything investors can dream of. It’s fascinating. I am happy with this new finding of mine.


Anonymous said...

If you go to, you will be able to watch there shows.

Sunny said...

Ohhh thanks!

I didn't even check on the channel Web site....

The full episodes are there online!!!


Botox, men, palace.......



Sunny said...

youngandthrifty said...

I love KEG.UN. It's doing quite well and the restaurant is always booming. Even on a weekday. Many people go there for celebrations and to get together with friends.

I bought KEG.UN a few years ago and they sent me a $20 gift card as part of their annual report last year. It was awesome and I'm hoping for one again this year!

I have heard crazy things about the desperate housewives of Vancouver and I'm surprised to hear that the owner of KEG was an exhusband of one of the women! I wonder how much he has to pay her every month... :)

youngandthrifty said...

I'm a huge fan of KEG.UN. I bought it in 2009 I think. Last year they gave out a $20 gift card to the KEG as part of their annual report!

Best annual report ever!

I didn't know the owner is the exhusband of one of the desperate housewives! I wonder how much he pays her per month!

Anonymous said...

are you going to invest today? it's at a all time high, isn't better to invest when the stock was on special like in 2008-2009?

Anonymous said...

buy high it seems. like another poster said ENB vs MFC - 2% return vs 25%. you didn't touch MFC because it was going on a downtrend, but in fact you should be buying because it's on special. Yes, the KEG graph is nice, but now the stock it's at a all time high...

Sunny said...

Nice to hear that you hold KEG.UN young :) It's nice to get a $20 certificate with a financial statement. Lovely idea.

Reading about David was quite interesting. Kiesel is now a millionaire, mostly because she had been married twice... He must paid her something big, even with no children.

I don't have any money to invest in KEG.UN but it's something I would like to add in when I will be out of unemployment.

KEG.UN is at its highest because its performing well. Look at PPL, KBL, MX... FTS... they are in their highest... you cannot avoid such situation. Quality stocks like that are always at their highest when you want to invest in them... its part of the game.

Anonymous said...

Lots of quality stocks where trading lower in 2008-09. You preferred to invest in stocks like SII, gold, silver and small cap stocks and we all know the results. You've been under performing the market ever since.

You could have bought some wonderful Quebec companies like BMO at 25$, today trading at 58$, BCE at 21$, today trading at 39$ and NA at 24$, today trading at $77.

Anonymous said...

DG: The restaurant Trusts have all had a run up since last fall/summer. They're all yielding over 6% Boston Pizza BPF-T has had a stellar run. A&W a little more bumpier one. But there's a lot of metrics to consider. Short term: Much higher fuel costs will affect the restaurant industry. The impact to local food growers of our upside down winter has yet to be seen. Midterm: US companies like Chipotle trying to make inroads using a different business model (& one that seems to really have caught on with consumers). Long term: sustainablity of payouts & volatility. Cheers!! Anony-resto-rant-asaurus

PC said...

I watched the first episode of the Desperate Housewives... so much drama between the girls!! I always wanted to see how the rich lives!! Christina's a gold digga and she's proud of it... ahh so her ex husband is Keg's owner. Thanks for sharing the information. I have a small piece of Keg.un. It's been treating me well for the last few months.

Sunny said...

The Desperate Housewives of Vancouver is a fun show to watch.

I have SII, gold, silver, just like I have other blue chips. I don't agree with your underperformed remark. My portfolio is to die for. I had BNS, MX, PPL, ENF. Those are what I name good companies to hold. The Quebec companies name in your post cannot be compare to my blue chips.

Volatility exist in every single sectors. KEG.UN had been very well manage, it show up simply by looking at the chart.

Adding a few stocks of KEG.UN could be a good way to add extra diversification in.

That David is sooooo interesting.

Anonymous said...

i am just curious about your rbc line of credit situation. did it increase by 3% yet. did the honour your old rate? are you still keeping it?

Sunny said...

Nothing move regarding my problem with RBC. I talked to representative, asked to speak with a supervisor, who took the complaint, but I didn't received any feedback.
The only way for me to avoid this is by going through a credit check, which is an absolute nonsense.

I won't forget about this one.

When I will be richer one day, I will be out of RBC, closing everything I have there.

Anonymous said...

what's the credit check has to do with the rate increase? i thought they only do a credit check on new loan applications...

Sunny said...

I know, it doesn't make any sense at all. When the rep told me that, I asked to speak to a supervisor. I wait, wait and wait.... and the supervisor told me the same thing. I had that credit line at 7.52% for quite a while now. I never miss one payment. That credit check request is just an excuse they are giving to increase it for nothing at all. I may call RBC back again and giving them one last chance to fix their mistake. I do not agree for a credit check. I won't authorize a credit check just to keep something I had for a long time now.

Anonymous said...

How Interest Rates Work

When you take out a loan or line of credit, most financial institutions will charge interest in return for lending you the money. In general, here are the factors that will determine the interest rate on your loan:

The current Prime Rate. Each bank sets its own Prime Rate; however, this is usually based on the rate set by the Bank of Canada.
The type of loan and whether you put up collateral. For example, the interest rate on a home equity line of credit (where you use your home as collateral) would be lower than the interest rate on an unsecured loan.
The term of your loan. This is the period of time for which the interest rate on the loan is guaranteed and may also be the length of time that it takes you to repay the loan (amortization).
Your credit rating. Generally, borrowers with a good credit rating get better rates than borrowers with a weak credit rating.
Other economic factors can also affect interest rates in general.

How Can You Qualify for a Low Interest Rate?

Even a small difference in your interest rate can have a big impact on the amount you will pay for your loan. Here are some tips on qualifying for lower interest rates:

Build and maintain a good credit rating history by making your payments on time.
Consider using one lender—if you have multiple accounts with a lender, you could receive a lower interest rate in recognition of your relationship with them.
Choose a secured loan, where you put up some type of collateral. For example, borrowing against the equity in your home or using non-registered investments—such as GICs, government bonds or stocks—as collateral.

Anonymous said...

I am an RBC client. In a few months, they will be raising there fees. For example, my extra transactions will go from $0.65 to $1.00. I also believe the transactions included in monthly fee will be reduced to 10 from 15.

When I got a credit rating done for my LOC, they showed me the screen. It showed every bill that I have and if I paid in full, or the minimum payment. You have a high debt to equity ratio right now, and if the market goes lower this ratio gets higher.

I believe the other banks will follow suit within the next year.

Sunny said...

What insult me the most in this story is that there's been no changes apply to the prime rate. I would accept the increase if it will be because of an increase in the prime rate, but its not the case.

RBC is increasing the rate just to make more money out of me and lose me as a customer.

Regarding the high debt ratio, remember that my margin account (where I have 50k in debt) doesn't appear no where in my credit score. Margin account is not being taking into account.

Knowing that, my debt account is not in bad shape.

I don't agree to go under a credit check just to keep a rate I was giving at the time of the opening of my account.

I never miss a payment. I am good at the other places too. Which mean my credit score might had remained the same it was at the time I open my credit line at RBC.

I won't follow their rules.

I am under process to pay completely that credit line.

The increase will happen in May.

Anonymous said...

They are giving you the opportunity to keep your low rate if your credit check is the same as it was when they gave you the low rate. I believe banks are being pro-active in analysing in determining which customers could have problems when interest rates start going up. Although you have been paying interest payment on time, I suspect you haven't been paying much capital on the line of credit. I doubt you would keep the low rate with a credit check as you are more leveraged today with your margin and RRSP loans.

What RBC is doing right now, is going to happen eventually even to your margin account and that's another reason why you should pay down some of your debt. The higher the interest rate, the harder it will be to make money investing using margin.

As for fees going up, if banks wants to keep increasing their profit, money's got to come from somewhere. Funny how we like our bank to make money when we buy their share, but don't like paying extra in fees and interest as a customer. Same can be said with Rogers and Bell; every year they increase their prices.

Sunny said...

You are right, for a while, the credit line was at 10k (I used it fully)... For the past couple months, I started paying it off.

I guess I don't have any choices than to go on that credit check.

Anonymous said...

you don't have to go through the credit check. in fact this might be a blessing in disguise, sell some of your investments and pay off this line of credit. then the interest you were supposed to pay on it monthly, invest that instead gradually over time and this investment will be debit free forever! I am surprise you got a line of credit with interest payment only at an early age, normally banks ask at least 2% of the outstanding balance + interest per month type thing, especially it's unsecured line of credit to boot...

Sunny said...

I will never sell my investments just to pay debt. Why? Well, since the vast majority of the debt I hold are for investment purposes, I can declared them on my taxes and get a tax break for it (a credit or whatever else its name). For 2011, I made closed to the 45k, and I get a return tax of $185 because of all the credit my investments gave me. Tax income is also lower in New Brunswick. While living in Quebec, I always had to pay taxes on a little salary that exceed the 40k.

Also, this is certainly a pressure coming from the government. I heard a lot in the news about Canadian debt... that family household debt etc... So at a point, banks are increasing the interest rate EVEN if the prime rate haven't change to push Canadians to pay their debt...

There's a lot of factors involved, but I won't ever forgive RBC about this one.

I really don't have any choices than to go under a credit check. I will call RBC this afternoon...

Taking care of business :)

Anonymous said...

how did it go with rbc?

Sunny said...

I call RBC and explained that I received a letter saying that in May, my credit line interest rate will increase of 3%, from 7.52% to 10.52%. I said I wanted this resolve.

The only way for me to keep my old interest rate is to go under a credit check, an assessment how the rep name it.

I wanted to start the process. The first question of the rep was about my employment situation. I told her I was currently self-employed since March 2012 (I told her I had been laid off and started a small business). Unfortunately, while having a self-employed situation, it take 2-3 years of records as self-employed to be taking into consideration.

I told the rep my net worth, but I was told that the fact that I am self-employed without a 2-3 years record, it could play against me.

If I decided to go under a credit check, it could happen that my interest rate go higher than the 10.52%.... even if I never miss a payment credit.

So I decided not to go under the credit check and leave things that way.

In the afternoon, I went to my RBC branch, I had an appointment to open a small business account. They have the cheapest package on the market (I am going to write about it on my next post).

I explain the situation with my credit line. And I was told they could go under an internal check for me and there will be no risk that it go higher than 10.52%. So I have an appointment next month. We are going to see what happen.

Anonymous said...

This is too hilarious, proof that all the complaining you do here, is just talk.
You say you will never deal with RBC and you won't soon forget the interest rate increase. Boy, how fast we forget, a few days later, you have an appointment at RBC to open your small business account because you can save a few bucks.

I can't wait to see you talking good stuff about RBC small business account.

Now you see why RBC is being pro-active and doing credit check. Because people's circumstances changes. And like I said, I doubt very much you would keep the low rate with a new credit check. All the signs are in front of you, you are unemployed and have too much debt. You need to face the reality and put your finances in order.

Sunny said...


This is not hilarious. Not at all.

Fact is, I am only dealing with RBC because they are offering the best package for my business needs. That really all. And you'll see why when I post about it.

Since my margin account does not appear at the credit score, I can say that I have a worth net of something like 130k. Not bad isn't?

My finances are in order.

Anonymous said...

not quite, they will ask to provide your tdwaterhouse statement as proof of net worth and they will see you have 50K margin on it too... your investment to debt ratio is 2 to 1! good luck, hopefully rbc won't pry into too much in your current situation and ask to provide more details. pay off your debt, instead of paying the interest and make the bank make money off you, you can pay yourself instead = meaning instead paying the bank interest, you invest that payment instead!

Anonymous said...

what's your self-employed business now?

Anonymous said...

Hi all,

This is all I have to say about Sunny's situation: It's Sunny's life, let her live with the consequences of her actions. We, her loyal readers have done our job. We have made her aware of the risks. Now should we help Sunny understand the degree of risk she is taking by having the majority of her assets in the stock market/ using leverage to achieve her goals of being able to live off her dividend income? Anyone want to take take this one on?



Sunny said...

Its a small home business, I won't write a word on what it is on here.

Its quite strange that some people thing I am looking for advice or answers, because I am really not. I don't have anything to understand, I know what I am in.

I won't let some jerks telling me what to do.

The little RBC idiots won't have access to more or less than that is on my credit score. I am under no obligation to display my margin situation, its none of their business. I always cover the account number and all of the investments I hold on statements I provide to bankers. They only can see numbers on it. This time is going to be no exception.

Its going to be done on my rule or I am going to FLUSH RBC once for good and use them as suckers.

(I know, that last part sound pretty exciting!)

There you go.


Anonymous said...

you are under no obligation to provide additional information to rbc, but since you are asking rbc to lower the line of credit rate (they increase the rate because they think you are more risky than others) and as a condition to lower the rate, they want to see if you have enough assets to quality, then at that point you will have no choice to provide your investment statement. you can obviously refuse at that time, and you will stuck with the new increase. unfortunately, this comes at a time in your life that you've recently moved, you've worked only for 4-5 months at a new job, now you are self-employed for 2 months... further, what's playing against you, is that the majority of your assets it's with td bank, so for rbc there's no real incentive to lower the rate, unless of course you transfer to them. the simplest is to pay it off... debt free from rbc wheeeeee.... 10% interest is starting to be a lot, no large blue chip companies currently will provide 10% dividend income to pay off the interest on this loan... maybe some very risky small company might fit the bill...

Anonymous said...

how much have you earned from your home business? are your parents supportive of this? anyway, as mark pointed out, lot of people are giving excellent advice. it's your life, it's up to you to follow, but don't cry once markets go sour and you get a margin call because of being too leverage! that's one of many causes during the financial crisis. until you really lose a lot of money, then I hope you would have learned your lesson. in your situation, that's the only thing that must happen to you to fully understand how risky your investment portfolio is. Then, a lot of people will say, I told you so! It's someone have a gambling problem and doesn't admit and saying at the roulette table, the next number must be even, since there's already 10 uneven numbers drawn and I am all in... Hopefully, in 2-3 years from your portfolio won't suffer too much pain...

Anonymous said...

You're naive if you think you can deceive RBC. When they do a credit check, margin account will show up, whether you show it to them or not.

Sunny said...

I can assure you, the margin account doesn't appear on the credit check. I had a credit check done at RBC before when I had the margin and I was able to take a look at my credit information.... and the margin wasn't there. I wrote about this before, how having a margin was a gangster way lol to pay off credit line... Gangster way because know one can tell where the money is coming from...

A margin account is being giving under the value of the stock you hold in your portfolio. It was nothing to do with credit score.

Some readers are just sooooo ignorant.


And by the way, I don't expect to have an kind of effect on RBC because they are soo arrogant and antipathetic.

Some people drink alcohol, do drug, take anti-depressor when they are having a hard time in life, myself, my way to go through it is to blog. And having a drink or two in the between.


You should respect the fact that I am having a very hard time right now and I am dealing with a bunch of things that just happen all in once.

I will go to my appointment in May and will see what happen.

I agree, no blue chips, no quality stock will pay me 10% in dividend yield. I had been doing my best to pay off that credit line. However, I still want to check at the branch if there's a solution available.

RBC need to show me what they can do for me so I can invest more with them in the future.

TD had been very good for me. But not RBC. It's up to them to catch up with their mistakes.

So far, I earned around $700 from my home business. My old folks are not involved. They have their own stuff.

Another is when spring will be, I will be gardening. I plan to sell my stuff on the border of the street :)

Like a lemon stand, but in sexier.

When it come to me, I don't like receiving advice. F off. This is my life, not yours.

NeilM said...

Hey Sunny - its been awhile since i checked your site, and going back to the original story, glad to see you are interested in KEG.UN - i have held it for some time now picking up additional shares monthly and having the added bonus of the unit value gaining 20% during the time that I have held it.

Good Luck


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