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

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To: bill who wrote (1775)	11/6/2001 12:44:30 PM
From: Tommy D	Read Replies (1) of 11633

Averaging down is okay Bill but your assumption is that there is weakness in the price right now. Certainly the price is lower than before but price of the trusts may go lower before they go higher. RBC did a good earnings analysis about price sensitivity to the drop in NG or oil prices for the trusts and then you have to factor in the hedging. You might want to find a similar sort of analysis from your broker and then draw your own conclusions as to risk reward. I love the discussion on hedging on this and other boards. 18 months ago, myself and others got absolutely blasted on the East Lost Hills thread for suggesting that hedging made good sense for many companies in order to ensure they could complete their exploration programs. Its great to see the use of derivatives and in my view in a smart way to protect the company and its shareholders, not to gamble or speculate on price moves. While I am cautious on buying now, still have 1/2 of the trusts that I held before June of this year so I hope you are right with you timing. Good luck. Regards TommyD

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