Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: TobagoJack who wrote (26806)	1/4/2003 2:40:18 PM
From: Seeker of Truth	Read Replies (1) of 74559

Jay, the energy royalty trusts in Canada are semi-Ponzi schemes. Why do I say semi? They do save a little of their earnings for some self financed replacement of the depleted reserves. However it's usually not enough to keep their earnings at the same level consequently they need to sell new shares. As far as I can see, all of them do this at least once a year. My favorite is AVN.un. AVN.un retains 25% of the earnings for development of replacement resources. Also they are heavily into natural gas which seems to have a brighter future than oil. In any case the royalty trusts are commodity shares; when the price of the commodity rises so do they etc. Not as peaceful as shopping plaza reits Since people like high yields, the trusts can place the new shares . As a result they live more or less forever, in their semi-Ponzi way. Chugs, Malcolm

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next