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

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To: LLCF who wrote (360)	5/30/2000 8:37:00 PM
From: Lorne Larson	Read Replies (4) of 11633

Here's the P/CF for most of the royalty trusts, based on cash flow for the 1st quarter, extrapolated by 4 (this was done last week, so these numbers will be slightly off because the price of some of the trusts has moved since then): MXT - 2.11 APF - 3.06 EIF - 3.09 ERF.G - 3.38 NAE - 3.79 PWI - 3.83 VKR - 4.01 AET - 4.28 WRF - 4.67 FRU - 4.71 WRE - 4.72 SHN - 4.92 PGF - 5.11 Obviously MXT is still grossly undervalued on this analysis. As they said in their quarterly report, they are being penalized for not making distributions, even though paying down debt is an equally valid use of cash flow. Note that PGF and SHN, the trusts that pay the highest distributions, are given higher multiples. By my calculations the CF per share of MXT based on the 1st quarter extrapolated over the year will be about $1.45. If you grant MXT a P/CF ratio of 4, in line with the other trusts, the shares should be worth $5.80. Shouldn't be surprised that it's getting tougher to buy these shares much below the ask. I'm still buying. Regards

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