Dave M.

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24 Comments

    • Sat May 10th 13:16 PM | Rating: 0 0
      Commented on:
      Penn West Energy Trust: An Underappreciated Gem
      Steve Ward said..."Jack, Canadian Safe Harbour Laws limit how much capital the Canroys can raise to expand before the 2011 deadline and every Canroy has a different limit.""

      This factor brings up another huge risk for PWE shareholders. At any time, PWE can announce that they are converting back into a corporation and abandon the trust formation. The dividend will be slashed severely and the income investors will bail out quickly. Other Canroy trusts have already converted because it frees them from the capital constraints put on trusts until 2011.

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    • Sat May 10th 08:05 AM | Rating: 0 0
      Commented on:
      Penn West Energy Trust: An Underappreciated Gem
      I didn't say anything about tax free. I said that the 13% yield is illusory for most people. With IRA accounts, that 15% haircut is gone forever and can NOT be claimed as a foreign tax credit. Ever. With taxable accounts, please re-read my above post.
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    • Fri May 9th 21:58 PM | Rating: 0 0
      Commented on:
      Penn West Energy Trust: An Underappreciated Gem
      Jack said.."PWE has to go up is 17% because you are getting a 13% dividend".

      No, you have to take that 15% tax haircut off of the 13%, which makes it 11%. In a lot of cases, both IRA and taxable, you can not claim all of the 15% haircut as a foreign tax credit.

      That's because, in taxable accounts, the IRS has income limit rules (domestic vs. foreign income) that severely hamper your usage of these foreign tax credits. Even though you can carry forward these tax credits for 10 years, if you keep holding PWE, you can never use them in the ensuing years until you sell PWE for an extended period of time. Bottom line is that the IRS makes life very hard for you to use these foreign tax credits.
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    • Fri May 9th 17:06 PM | Rating: 0 0
      Commented on:
      Penn West Energy Trust: An Underappreciated Gem
      PWE is still below it's pre-"Halloween massacre" price. Not a good sign. Better Canroys are above their respective massacre price (Crescent Point, Baytex, Freehold, et al).

      In addition, another big risk is much stricter environmental policy on drilling and oil sands development. Socialists are in bed with the environmentalists, dontcha know.
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    • Fri May 9th 12:33 PM | Rating: 0 0
      Commented on:
      Penn West Energy Trust: An Underappreciated Gem
      Jack said.."Unless oil and gas crater, or some terrible disaster occurs, I can almost guarantee a 30% return on this company in the next year, and 50% would not surprise me in the least. How many other stocks that have almost NO downside risk can one say that about? "

      Not so fast there. Never underestimate the ability of a socialist government to seize corporate wealth. PWE has a LOT of downside risk. Both by new government taxes and by the ever-so-volatile natural gas prices.
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    • Thu May 8th 10:56 AM | Rating: 0 0
      Commented on:
      Wall Street Breakfast: Must-Know News
      Whenever there is a Democrat President, the talk is always of a "soft landing". Whenever a Republican is President, it's always a recession. Yet another example of the left-wing bias of the media.
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    • Mon May 5th 11:05 AM | Rating: 0 0
      Commented on:
      Muni Bonds Will Outperform - Barron's Interview
      Their analysis of tobacco bonds is suspect. "Impending lawsuits"? That makes no sense. The MSA has nothing to do with future lawsuits. In faxt, the MSA protects existing tobacco companies from any possible future competition. Are you reading the article wrong or is their analysis wrong?
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    • Thu Apr 24th 16:58 PM | Rating: 0 0
      Commented on:
      Munis: Get a 5% Tax-Free Yield With the Bond King
      There are numerous closed end muni funds that do not use leverage. NUV is the largest.
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    • Tue Apr 15th 13:51 PM | Rating: 0 0
      Commented on:
      Lessons from the Best-Ever Hedge Fund Manager
      Reminds me of the old saying..."Stocks move based on 20% fundamentals, 20% technicals and 60% Market Psychology!
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