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

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To: mark calgary who wrote (1396)	9/10/2001 8:30:42 PM
From: trustmanic	Read Replies (1) of 11633

I have more apples and oranges... This is only a hypothesis....If you have $10000 cash If you put it in your saving account for 6 months, your compound return is around $25 If you put it in short term deposit. your return is around $128 If you put in money market fund....you probably get $172(before tax). Of course, you have nothing to do with the stock market, up /down is non of your business. Your money is safe. However, if you put your money in an energy trusts, I figure out this is the compound return that you may get. Using your $10000 to buy a trust @ $7.4 you will get 1351.35 shares. Let say the first month they pay 20 cents for one share, you will get a dividend of $270.27. And then you reinvest this money to buy 32.8 share@ $7.4(incl.commission).. 2nd month you will have 1384.17 shares. Again the 2nd month dividend is also 20 cents, you will get $276.83. The share price @ this point drop, it only worth $7.3, then your $276.83 can buy 33.95 shares. By the end of 2nd month you will have 1418.12 shares. The 3rd month the dividend reduced to 18 cent sand the share price is $7.25 you will get $255.26 or 31.2 shars. By the end of the 3rd month , you havea total of 1449 shares. The share price drop again to $7.2@ the 4th month, your dividend is $260.88 or 32.2 shares. The end of 4th month you have 1481 shares. The 5th month the company reduced the dividend to 16 cents and the share price drop again to $7.15, you still get $237 or 29.1 shares. Total shares @ this point is 1510 shares. The 6th month may be it only worth $7.1 you will get $241 or 29.9 share. The total shares is 1540. Now...if you have 1540 shares @ $7.1 = $10934. This is way better than you put your money in the bank and do nothing. Of course there is a risk of the share price is 20% lower, then you loss. You also have a chance to see the share price go back to $7.4 then your 1540 shares = $11396(before tax). I will go for the energy trust..

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