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

To: David Culver who wrote (3275)	5/9/2002 7:05:21 PM
From: Lorne Larson	Read Replies (2) \| Respond to of 11633

The oil and gas trust market has always had its darlings. Arc and Pengrowth in particular. The big players like Arc's management and Pengrowths reserves. However I believe over the past 3 years the best performing trust on a total return basis may in fact be APF (maybe someone with some time can do an analysis). It's a little too small for the institutions, and a few years back they lost some money on an aborted deal that caused some people to question their management. I like APF and have a small position. I'm loading up on the gassy trusts like Advantage (what a sweet little trust this has been since October; 65% total return) and Shiningbank. Looks to me like we may be headed for a NG supply crunch in the next 12-18 months. Decline rates are very high on a lot of recently drilled wells, and there is a whole lot less drilling going on. No other reasonable explanation as to why the price of NG is as high as it is given the large storage numbers at present. The real sleeper if NG takes off could be PWI. Their good hedges start coming off later this year and that's what's keeping their price down. However if they luck out and hit rising NG prices at the same time as their hedges come off, it's a whole new ball game, and they'll bounce big-time. Haven't bought yet, but worth keeping an eye on.