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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (38718)	8/8/2010 4:21:04 PM
From: Paul Senior	Read Replies (1) of 78471

FRHLF does not seem undervalued to me on the face of it: enterprise value exceeds nav. Company though owns a lot of land in oil shale plays in which I'm interested. Freehold will eventually lease these out to get royalty payments on oil produced. I'm hoping and expecting that there's a lot of oil there that can be extracted. Rate to unitholders now is C$.14, which annualized is C$1.42, after the current Canadian 15% tax is taken out. C$1.42 is about 9% on a US$15.9 stock price. Royalty streams will continue, albeit cash to unitholders may be less initially after the corporate conversion. Or before, if bod changes distn. amounts. (Company says it's committed to high payout ratio though, and tax changes won't hit until 2012 (if I remember correctly.))

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