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

To: Peter W. Panchyshyn who wrote (1503)	9/19/2001 7:53:58 PM
From: russet	Respond to of 11633

I like the fact that AE.un is 62% oil,...as long as OPEC acts like a good cartel should. AE.un has 28.13 million shares fully diluted and closed at $3.93 today. Net asset value on the 2 quarter balance sheet is 126.756 million assets - 69.100 million liabilities = $57.656 million. $3.93 * 28.13 million shares / $57.656 million NAV = 1.91 times book which is higher than any other trust I have looked at. VKR.un is another oily trust that trades at 1.76 times book. The oily trusts appear to command a higher valuation, probably given oil prices have not declined as much as gas. Note that anything that distorts the net asset value relative to other trusts could work to make comparisons less than reliable. A lot more reading and calculating is required before I could form a reliable opinion. It is very difficult to compare one oil and gas property to another unless you know what level of confidence in the reserves and operating costs there is, what hedges they have in place, and how prospective the properties are for new oil and gas wells. Some properties are worth more than others and that worth may not be reflected by GAAP accounting rules that dictate the calculation to determine the asset class "property and equipment", and only people very familiar with the properties are truly in "the know",...I am not on AE.un