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Strategies & Market Trends : Group Therapy -- Ignore unavailable to you. Want to Upgrade?

To: E. Graphs who wrote (3395)	4/17/2001 5:20:54 PM
From: Duane L. Olson	Read Replies (1) \| Respond to of 4564

Hey, E! Don't thank me for NCN!... Wolf has been beating the royalty trust drum long enough that we should have done a thorough checkout much earlier. But now that we have "gotten religion" here are a couple more thoughts, by way of a nice fellow using the nom de plume of "Whitepine": HGT (I bought today).... if there is a reasonable chance that Natural Gas (NG) stays near current level, then this Hugoton royalty trust will yield something around 30 percent. ERF: You were the first to note that it was now listed on the NYSE; I bought at 14.70 and two months later it is at $18.75 SJT. I prefer HGT, but SJT is similar and associated with Burlington Resources, and the chart is "acceptable": quote.yahoo.com yield on SJT is running above 20% Your other point..... I agree the emphasis is misplaced if you are waiting for tech to rescue your soul --- natural resources make more sense for now.... and where there is a strong NG component, the story is compelling (to me)... just mho, of course.... tso

To: E. Graphs who wrote (3395)	4/17/2001 6:00:09 PM
From: Duane L. Olson	Read Replies (1) \| Respond to of 4564

E! Proposal: Topic of the week for GT: Energy. Possible subtitles: 1. Alternative energy 2. Coal vs Alternative vs NG vs Oil vs Nuclear ....abbreviation CANON.... A "CANON" debate would be about the benefits/disadvantages of changes in the "mix" --and where the profits lie in answering that question. 3. Sectors: Drillers, suppliers, database, producers, refiners, distributors, etc... 4. Energy Financials: primarily royalty trusts, but also their capital gains oriented counter-parts or sponsors... (paired, as is BR with SJT and XTO with HGT).... Let me start the fray by proposing the following: 1. The "energy crisis" is real and extensive, and cannot be fixed soon.... The evidence is available (will share a bunch later). 2. Attempts to provide short term fixes may cause severe disruptions in the " normal process of reasoning" about energy winners and losers. Example: BRY Check this out quote.yahoo.com This energy company is located almost entirely in California. With major reserves in Kern County, Berry Petroleum generates electricity from it's own production and send the electricity to California electric companies at higher and higher prices. PE is around 7. GREAT find, right?!! Wrong. Berry "sells" electricity, but it doesn't get paid for electricity. It has had to cut back on what it supplies to avoid going into the crapper....bigger companies can stand the pain --- Relient (REI) is owed $330 million, Enron (ENE) is owed $570 million. California squeals about energy costs, but for much of it, their cost has been zero, zippo, nada, as in "deadbeat".... 3. Opportunies to make bucks on energy may range from the usual (coal and NG) all the way out to windmills, fuel cells, micro-turbines, wave and ocean current devices, gyros, etc. We have several examples to share, next post, and would welcome more. One of interest is Capstone Energy (CPST), which already makes small turbines that would be highly attractive for, say, high tech companies that just cannot afford to sit idle through the power blackout. OK, my voice is gettin weak.....believe I'll pause... Any interest in pursuing this, E! ? I think we have a large number of interested folks and they aren't all being served on the other threads -- to my knowledge...... just a thought tso