Jack Yetiv

High-Yield Canadian Royalty Trusts: What's the Catch?

I expect that several--if not most--of the trusts mentioned above, will report record earnings in Q2, which will begin to be reported next month.

In addition, I think the reports will indicate that future production, which was being hedged last year at $60-80, is now being hedged at $130 or even more, meaning that even if oil DROPS from $140 to say $120, earnings in 2008 and 2009 will actually INCREASE.

My favorites are PWE and AAV, and I look for 10-20% moves on both in the next 30-60 days.

Jack Yetiv