NOWHEREMAN

Three Top Canadian Royalty Trusts

A couple of others, HTE and PWE. PWE is one I love to hate, management not the assets.

They will all be declaring Distributions by the mid of Jan., will be interesting to say the least.

Canadian Royalty Trusts Will Never Return to Their Former Glory

Lets say the dividends from these corporations are fully taxable, I started buying them prior to the 15% tax revision because I couldn't find many companies with monthly payouts matching theirs. A Monthly supplement was rare back in 2001-2002. Income on a monthly basis as an add-on to wages, social security, etc remains my primary goal.

This year a new asset class has been added to my list: MAV and MHI, federally tax exempt Municipal Bonds, with a monthly payout. A few months ago I added TNK which was reamed thereafter, I recently doubled down. It is quarterly but what the heck, my next quarterly will reduce my overall cost by 10%. I expect the next quarterly payout to drop by 2/3rds with a probable drop in stock valuation. I will double up again. Oil will continue to be transported into future and the distribution will increase again, I'm willing to wait.

Canadian Royalty Trusts Will Never Return to Their Former Glory

My typing leaves a lot to be desired, misspent youth?
Usually though, one gets the gist of of what is being said.

If the CanRoys were a strictly dividend income play, I would have started diversifying out of some of them a long time ago. They are and will continue to be Oil/Gas companies with very attractive assets which will be utilized for many years into the future. Big oil has nothing compared to their potential.

I treat them as such, I am quite willing to wait for the next oil cycle to begin while holding assets which deliver extraordinary yields while I wait.

Now, most of the Stimulus employment orientated plans that I have read about are Infrastructure intensive. They are being proposed accross the globe. All of the currently beaten down commodities will again be in demand. Oil will play a major role. IMHO, I will not have to wait until 2011 before the CanRoys double from their current prices. Afterwards, I expect them to go up even more as Asset Plays.

What has been really interesting about all of the previous posts, has been all of the time spent bickering about who said what instead of staying on point.

Too bad, time could have been spent discussing whether any of the Trusts were Grandfathered and are exempt under the proposed law. Which trusts were more levered to oil vs NG. Which trusts had other operations, that sort of thing.

Natural Gas projects like Haynesville are being curtailed with the rest of the Oil complex. Bakken? too expensive with a current negative return. The small players who were the driving force behind these projects can't get the financing to continue expanding. The projected 2009 NG output? I don't know but I will make a Really Nasty comment here, there will be a shortage of NG by the end of next year.

The US imports NG from Canada via pipeline 24/7, we must be doing it because we are really stupid since there is a Large Surplus in this country.

Or maybe its the real nincompoops who do not realize that we are not self sufficient and have to keep importing it.

Canadian Royalty Trusts Will Never Return to Their Former Glory

Another Apples to Oranges comparison.

The author uses 2007 oil statistics and applies present prices and economies of scale on them alone. What has not been taken into consideration is the value of the Canadian Currency.

Last year the Loonie averaged near parity with the USD, in fact well into this year. Now it is around .80. They sell in dollars and convert into Loonies $48 dollar oil is 60 canadian. They were losing money on a currency translation basis when the Canadian Dollar was above parity.

Next, as the author says, while Canadians may continue to receive the dividends unhampered, I certainly believe that they are as equally perturbed as we are about the valuations of their investments. I doubt whether they will remain sanguine on the subject during Canadian Elections. IMHO

Next, Do you actually believe that Virtually Simultaneous stimulus Packages throughout the world will keep Oil prices below $100 given your statistics on supply reductions from Mexico, Russia, etc.? If so, please continue to bury your head. A Famous Accounting quote "Figures don't Lie, But Liars figure."

Four High-Yielding Canadian Oil Income Trusts

Doesn't matter if they are Taxed as ordinary income either, I started with PetroFund before the tax rate was reduced to 15% because I couldn't find an Investment yield which was comparable anywhere.

Four High-Yielding Canadian Oil Income Trusts

I own PWE. Only because it ate two companies I owned.
PetroFund and Canetic. I hate it with a passion because I dislike Managements' idea on what Disclosure means.

So, what do you think of PWE and what about PGH"s Tax reporting structure which seems to get more onerous every year.

AAV's Hedges look like they will come back to haunt them for some time, any thoughts.

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

I don't care what the Tax rate is/will be/may be.

The underlying fact remains that the Oil Trusts have an average life of 10 years and are keeping that steady while other oil companies are hard pressed to find oil around the Globe.

They are oil companies regardless of they they are called now. They have vast unexplored assets and they are very,very unlikely to go the Chavez route.

Each should be treated according to underlying assets, even if those assets are well hidden by management to prevent unsolicited takeovers.

The Canadian Dollar will eventually trade well above the US dollar.