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

To: trustmanic who wrote (2590)	2/7/2002 3:40:37 AM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

Lots of people short income trusts. ------------ I doubt if it is "people". "Individual investors". Most probably its institutional money. Going by the documented shorts done by Lorne. We see gains in the area of less than 2% or 1% on the undertaking. For an individual investor, joe average, this is just not a viable activity. With returns this low the $ amount of the short is going to have to be quite large. Well beyond what joe average is capable of doing. For example typically joe average may have a few thousand to put into something. With a few thousand what does a return of 1% or 2% translate into. For say $5000 a return of 1% equals $50. The costs of doing this eat up this gain. Making the whole undertaking a waste of time --------------------------- but to short something like sardine, well I don't know. --------------- Your right it doesn't make sense at all for joe average. Who has neither the time nor the stomach for such an undertaking. And a simple look to the numbers show it to be the case beyond any doubt -------------------

To: trustmanic who wrote (2590)	2/7/2002 3:54:25 AM
From: Peter W. Panchyshyn	Read Replies (1) \| Respond to of 11633

EIT.UN (ENERVEST) has rights offerring Another rights offerring by one of the trusts of trusts. The time period of this one is the shortest yet. Some 15 days or so. For current holders of the trust it is a good opportunity to get some extra units at a good price, no cost. Look to the trusts NAV. For those not in the trust the time period being this short should be of concern. Though the right has already displayed a move which makes trading it an idea. I advise some caution. Those who can spend the time closely watching it maybe able to make a go of it.

To: trustmanic who wrote (2590)	2/7/2002 9:00:56 AM
From: Lorne Larson	Read Replies (2) \| Respond to of 11633

The oil and gas trusts are a more direct play on commodity prices than regular oil and gas stocks, because they payout most of their cash-flow, and their cash-flow is directly related to the price of oil and gas. The price of regular oil and gas stocks is dependant on many other factors, including exploration risk. Therefore the oil and gas trusts are an alternative to playing the energy futures market. It is not surprising therefore to see large short positions at certain times. My own opinion is that there is not a lot of money to be made shorting the oil and gas trusts at this point. The easy money was made in the last 9 months of 2001. Interesting to note that the short position of AY.UN increased from 0 to 136700. I'm assuming this was just before they announced their recent offering at $9.75. So if you're an insider you short it at $10.20 (it's price just before the trading halt to announce the offering), knowing you can cover at $9.75. This discussion has been held on this board before, so I'm not going to comment one way or another, beyond saying that I'm always surprised that the OSC doesn't investigate this type of stuff.