CC Income Trust (TSX: CCRUN; novel price: $17.

CC Income Trust (TSX: CCRUN; novel price: $17.80) provides a wide array of mechanical value services in Western Canada. Originally known as Canadian coarse Separators, CCS has evolved to the point where raw separation reflects only a small part of its total services. For example, its largest division, CC potency Services provides oilfield waste treatment, convalescence and disposal. Concord Well Servicing -- by means of 39 service rigs -- provides well completion, workovers and abandonments. CC by way of reorganizing into an income trust, can apply the mind forward to a solid financial reply into the future from its long-life assets and stable cash arise The expected benefits are enhanced access to equity capital, better liquidity, and a tax-efficient structure

Established in 1984 CC complet its income trust conversion in May 2002 and wager its initial distribution at $014 for month -- 46% of its pro-forma cash be molten Its business strategy remains unchanged with a foundation built in succession its TRD Division (treatment of byproducts) and a commitment to expanding essential, differentiated bottom services.

This is a market that remains under-serviced. CCS's extension capex this year is being stepp up to $90 million, which should end in EBITDA exceeding $20 million. CC has arranged an additional $50 million in credit facilities to finance its 2003 capital programme.

A delay in the Edson TRD facility may cause higher distributions to be postpon until nearest year. However, CCS has sustainable cash issue with accretive growth opportunities. The units now yield 101% Upside to distributions and price will be pendent on the company's successful execution of its increase strategy.

Doug Hawkins, MBA, is an investment advisor with Canaccord Capital, a member of major stock exchanges and the Canadian Investor Protection permanent fund Phone (905) 683-9824; email: doughawkins@rogers.com.

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