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Gold/Mining/Energy : Canadian Oil & Gas Companies -- Ignore unavailable to you. Want to Upgrade?

To: Lorne Larson who wrote (7014)	12/14/1999 11:44:00 AM
From: Gulo	Read Replies (3) \| Respond to of 24939

Lorne, All/ NCA.UN Trust: I can't help but think I'm missing something with NCA.UN that would account for its low price. Seriously, how can a trust unit yielding $1.00+/year be priced at $3.50? It had a bad year last year, but who didn't? Cash flow for Q3 (Sept 30) was $.37/unit and earnings were $.13/unit. That's .123 and .043/month. The distribution for December is $.09/unit; if earnings and cash flow held up, that would mean about half of the distribution is paid from earnings and only half comes from milking the assets. I don't see any barriers preventing that from continuing for 5-10 years with their current asset base (RLI = 10.4 years). They are 65% oil, 35% gas. When oil was $11/barrel, NCA.UN still paid $0.04/month. The PR folks at NCE feel the low trading price it is due to low liquidity. I'm not sure I buy that. Someone here must have looked at it as well. Any comments? The asset value/unit as of Dec 1998 was $3.12. Last Spring, they bought a large set of B.C. gas properties, but they only do a valuation once per year. By what percentage would properties have appreciated over the last year of rising prices? I thought I was getting a handle on this stuff, but I now find myself second-guessing my opinions.