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

To: David Culver who wrote (738)	2/17/2001 1:03:13 PM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

Surprised that no-one had commented on the PWI takeover of Cypress Energy. Looks real good to me. Gives them a 65% gas weighting overall. Immediately 13% accretion to 2001 cash flow (at 2.40/yr that adds an additional .31 cents by my calculations). What I like best is that they've immediately hedged about 3/4 of the production - NG at a floor of $7.25 (Cdn I assume) and oil at a floor of $25 (U.S). Also looks like they didn't overpay. They paid a premium to the market price, but all of these Canadian intermediates and juniors are trading way too cheap. The way I read the press release they effectively paid 2.9 times Cypress's cash-flow. I'm very surprised that more of these juniors are not being snapped up by the oil and gas trusts. Most times an acquisition like this will initially drive down the market price of the buyer. I'm going to bet that this won't happen with PWI on Monday (aside from any general sector malaise). Regards