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

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To: Taikun who wrote (7857)	10/8/2004 10:14:40 AM
From: Tommaso	Read Replies (1) of 11633

The prospectus on OST says that the capital shares are entitled to all income above that paid to the preferred shares. The current COS dividend more than covers the preferred stock. The hope of everyone holding COS is that when production is doubled, and if oil prices stay high, and expenses for the expansion are covered, the dividend will be greatly increased. If lower production and oil prices under $25 warranted a $2.00 a year dividend, it seems reasonable to expect that twice as much oil selling at double the price (and three times the profit margin) will warrant a higher payout. There are some very large holders of COS.UN who woukd be able to see that this happens, I believe. The bottom line is that OST capital shares could well be entitled to several dollars a share of income as well as capital gains. For U. S. citizens, it may be an advantage to be paid in Canadian dollars as well, should the U.S. dollar suffer a serious devalutation. Now I do not know if any of this will come to pass, but the arithmetic of the prospectus is clear.

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