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

To: trustmanic who wrote (1799)	11/8/2001 6:17:40 AM
From: Peter W. Panchyshyn	Respond to of 11633

I think it is a good strategy for EIT.UN, but rather stupid for those tender their PWI to exchange for EIT. Why should I trade my PWI..say a 4.91 P/E and 35% yield stock for a EIT -only 12% yield and 8 P/E. I get my dividend directly from PWI every month(without a middleman). If I exchange my PWI share for EIT, that means: I have to pay management fee to EIT in order to get my dividend from PWI. If the unit price of PWI drop, EIT drop too. Forget it. ------------------ Many ,when they first get into trusts, especially the oil and gas ones, aren't really ready for the volatility. When it happens especially at the beginning (first purchase) they become frustrated. Decide that its really not for them and look for something safer with less volatility. The trusts of trusts realize this and use this to their advantage. And any advantage they get is past down to the unitholders. (Case of luscars big move from $0.70 to $4.00) Remember these trusts of trusts sell at a discount to what they hold. The evidence thus far is that they hold their value much better because of diversifiying over several trust types. (They fall less) What you may lose in paying an extra management fee is more than offset by the stability and the extra plays on rights and warrants when they come along. For my own case in accumulating these (SDT.UN and EIT.UN) and playing the rights and warrants I have gotten myself pretty close to the 30% returns of the oil and gas trusts with much less effort and much less risk. With these trusts, and all the trusts ,its not a question of which you get into and when you do. It all comes down to how you play them. Do you play them for maximum benefit (returns) or not? If you don't then you end up with losses or smaller gains ,but if you do your returns are just so much better.