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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 (3431)	6/13/2002 12:08:17 AM
From: Lorne Larson	Read Replies (1) \| Respond to of 11633

Peter: As you yourself have said oil and gas prices go up and they go down. While I agree that it is somewhat unfair to criticize acquisitions after the fact, I think it is fair to expect some degree of astuteness (is that a word?) from management. Most people did not expect NG prices to remain at $8.00, nor oil to remain above $30.00. Yet that is the level at which many of the trusts were buying like crazy. In fact many people immediately criticized PWI at the time of the Cypress acquisition as having overpaid. The market in fact agrees with this, as shown by the discount still given to PWI's unit price. I think PWI's good hedges come off over the next 3-6 months. We'll see what happens to the distributions. Right now the market appears to be discounting a drop in distributions. PWI is paying the same distribution as VKR but trades about .70 less per unit. Bad management does have consequences, even in the oil and gas trust sector.