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

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To: trustmanic who wrote (2590)	2/7/2002 9:00:56 AM
From: Lorne Larson	Read Replies (2) of 11633

The oil and gas trusts are a more direct play on commodity prices than regular oil and gas stocks, because they payout most of their cash-flow, and their cash-flow is directly related to the price of oil and gas. The price of regular oil and gas stocks is dependant on many other factors, including exploration risk. Therefore the oil and gas trusts are an alternative to playing the energy futures market. It is not surprising therefore to see large short positions at certain times. My own opinion is that there is not a lot of money to be made shorting the oil and gas trusts at this point. The easy money was made in the last 9 months of 2001. Interesting to note that the short position of AY.UN increased from 0 to 136700. I'm assuming this was just before they announced their recent offering at $9.75. So if you're an insider you short it at $10.20 (it's price just before the trading halt to announce the offering), knowing you can cover at $9.75. This discussion has been held on this board before, so I'm not going to comment one way or another, beyond saying that I'm always surprised that the OSC doesn't investigate this type of stuff.

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