Brian27

Five Oil and Gas Trust Picks

Six months ago the trusts were a bargain. The Canadian government wants to reduce the corporate tax rate so the impact of trust convervison to corporation will be mitigated a bit.

But one has to value the trusts using the future corporate tax rate prevalent in 2011. Certainly, net income, cash flow and dividends will be lowered significantly. One should expect that alot of trusts will be bought out as 2011 approaches and the tax pools are used up, as the reason for their existence (tax shelter) will be gone.