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

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To: bill who wrote (4203)	9/15/2002 12:14:27 AM
From: russet	Read Replies (2) of 11633

PWI.un,...yield $0.40 * 12 months / $25.25 * 100% = 19.0%,...one of the highest of all royalty trusts. They are locking in some good future prices for gas and oil right now for the next year, so may keep this dividend for the current year. How much lower can it go? I think too many people view oil and gas royalty trusts like oil and gas stocks,...which really they are not. They have the best quality reserves, and buy those reserves at a considerable discount to future cashflows. Most fields the reserves are in have considerable potential to increase in value with future drilling and re-working of existing wells. This is a play on the future,...if you think oil and gas prices will significantly decline in the next 10 years, ignore oil and gas trusts,...but if you think the prices will level out or increase and you are being paid 15-20% to hold,...the decision is simple unless you think you can consistently make 20% per year for the next 10 years in something else. If you can make more,...please share that knowledge with the rest of us.

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