stockdoc06

Canadian Energy Trusts: The Best Long Term Income and Dollar Hedge?

Given the debt environment, most of the canroys have cut distributions to levels that make the company (including cap-ex) cash flow positive. Look at PGH's latest presentation for the value creation proposition. They buy proven assets (yes they use stock, because cash flow is distributed) and use their expertise to squeeze more oil/gas out of the ground than the previous owner's projections. Hence, a good use of capital because they are buying assets and able to use those assets to create more value. Many canroys also have undeveloped leaseholds that can be used for future exploration. The only argument you can make against these is the same arguement you make against any oil/gas company and that is that prices are going down. Good luck with that one. Let's talk about it in 10 years. I'll buy you a sandwich with my gold/silver/oil and we can use your dollars as napkins.


On Mar 26 08:40 AM notagoldbug wrote:

> you are clueless about cdn trusts as they are depleting assets based
> on issuing stock to make acq.......their yields are false and a blowdown
> IRR calculation needs to be done.....that being said the canadian
> government has givent then until 2011 to convert back to corporations
> and they will slash their payouts if they havent already
> stay informed