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

To: Richard Saunders who wrote (7872)	1/19/2001 1:53:55 PM
From: stan_hughes	Read Replies (2) \| Respond to of 24898

RS - Very interesting. Whatever the case, since the stock is already now $3 1/2, and the conversion to trust is on a 3 for 1 basis, that is effectively pricing it at $10 1/2 in order to entitle one's self to the forecasted $0.25 monthly distribution. You could buy AY.UN right now at $10 for the same entitlement, and actually have it backed by some assets. Hats off to existing FDE holders, but I'd take the money and run here as fast as my feet will carry me. Just my opinion and not meant to be investment advice.

To: Richard Saunders who wrote (7872)	1/19/2001 3:48:50 PM
From: VisionsOfSugarplums	Respond to of 24898

<<is this the start of some new flavour for oilpatch jrs.?>> Interesting in that a trust can distribute it's taxable income - the unitholders pay tax on the amounts received, but I don't believe the trust pays tax on the amount that has been distributed (which, if equal to taxable income, then means 0). For all those juniors with record cash flows that are going to have to pay taxes in 2001 (THY as one example), the trust would provide a return to the unitholders without paying tax on it first like with a dividend (paid out of after tax income). Capital appreciation on share prices haven't been great in the juniors, that's for sure. Might be willing to find investors willing to contribute acquisition capital to the trust and try to buy juniors trading at low multiples. Just a quick thought. Regards, t.