GeorgeMo

Harvest Energy Trust: Not Like Other Refiners

SkrummyDummy> HTE pays its dividend in Canadian currency. So, when the Canadian dollar rises against the US dollar, the dividend effectively gets a boost. A bunch of people bailed on the company when they dropped the dividend down to C$0.30 per month, but that was when the US dollar was much stronger. In the last 3 months, the value of C$0.30 has gone from US$0.20 to about US$0.31.

The relationship between currency fluctuations and stock price is a bit murkier. But, if the US dollar keeps going down like a rock against the Canadian dollar, it's bound to boost revenue for the company, and, theoretically, stock value.

Harvest Energy Trust: Not Like Other Refiners

SkrummyDummy> HTE pays its dividend in Canadian currency. So, when the Canadian dollar rises against the US dollar, the dividend effectively gets a boost. A bunch of people bailed on the company when they dropped the dividend down to C$0.30 per month, but that was when the US dollar was much stronger. In the last 3 months, the value of C$0.30 has gone from US$0.20 to about US$0.31.

The relationship between currency fluctuations and stock price is a bit murkier. But, if the US dollar keeps going down like a rock against the Canadian dollar, it's bound to boost revenue for the company, and, theoretically, stock value.

Is Harvest Energy Trust's Premium Valuation Justified?

I hold several shares of HTE in a Roth IRA, and I'm a bit irked by the 15% "foreign tax withholding". I spent some time talking with the Canadian and US tax authorities, and neither of them seem to know how to reclaim this leakage. Any one out there have an idea?