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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (292)	3/31/2000 5:14:00 PM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

I agree that the idea that these energy trusts own a depreciating asset is a downer for a lot of people, and that depresses the unit price. However in my opinion this analysis is very shallow for the following reasons: 1. Most of these trusts have a reserve life of 10-16 years. At an annual return of 20% it doesn't take a mathematical genius to figure out that you're still ahead of the game. 2. Most of these trusts are increasing their reserve life, or at least maintaining it. They do this by raising capital when their market cap is high, and buying assets when oil and gas prices are depressed. These guys are not fools. I actually hope that people keep ignoring these trusts. I'll keep buying them cheap, and pocket an annual 10-20% return. Any capital gain is a bonus.