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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks

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To: David Culver who wrote (282)	3/19/2000 4:33:00 PM
From: Lorne Larson	Read Replies (1) of 11633

All of the energy royalty trusts appear to be grossly undervalued right now. If oil and gas prices stay where they are many of these trusts will payout 20-30% this year (aside from any capital appreciation in the unit price). If oil dips to an average of $20 over this year, most will still payout 12-15%. Even at $15 oil many would show a 10% return at their current unit price. People don't want these things, so I'm buying like crazy. Would seem reasonable to see some take-over action as well - that is, the larger trusts taking over the smaller ones. Why buy oil and gas in the ground when you can buy it cheap on Bay St. Same is true for some of the other types of income trusts - pipelines, power facilities, etc. Pembina Pipelines has no debt, has consistently paid a dividend of .08c/mo over the last 3 years, and presently trades at $6.55 (was as low as $5.85!). That's an annual return of 14.5%. Look at Koch, AEC Pipelines, Northland Power, Algonquin Power, etc, etc. Incredible opportunity to my mind, and I suspect it won't last too much longer. The market can't be that inefficient forever.

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