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To: Don Lloyd who wrote (98926)5/2/2001 1:41:35 AM
From: Duane L. Olson  Read Replies (1) | Respond to of 436258
 
Don... OK, good point. True, the royalty trusts are paying out of "cash flow" rather than out of reported earnings, and if they aren't replacing the depleting assets, the investor isn't quite getting the "return" that a quick calculation might seem to indicate. That might be a good criterion to add in checking out the trusts, in fact. Some seem to be doing a good job of replacing -- even increasing -- their assets; NCN, for example increased reserves by 41% during 2000:
biz.yahoo.com
Thanks for keeping us straight Don.... the evaluation of royalty trusts sometimes takes a bit more work. And fast conclusions could be misleading...
dlo