Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: bill who wrote (4203)	9/14/2002 11:06:03 AM
From: trustmanic	Respond to of 11633

NEWS STORY Canadian Oil Sands Trust warns of higher Syncrude costs: $510 million added Canadian Press Friday, September 13, 2002 CALGARY (CP) - Canadian Oil Sands Trust blamed higher expenses for materials and engineering Friday as it boosted the estimated cost of the third stage of the Syncrude heavy-oil project in Alberta by 10 per cent, or about $510 million, to $5.6 billion. In April, the trust (TSX:COS.UN) had estimated the cost at $4.7 billion to $5.1 billion. "While we are very pleased with the higher performance levels of Syncrude's operations during the third quarter of 2002, we are obviously disappointed with the prospect that the Stage 3 expansion program will be completed at a higher projected cost," chief executive Marcel Coutu said in a release. "In the meantime, the improving operating performance and strong crude oil prices are significantly augmenting Canadian Oil Sands' funding capacity for this rise in capital requirement." Canadian Oil Sands Trust is an investment trust that generates income from its 21.74 per cent working interest in the Syncrude Joint Venture. The other partners are AEC Oil Sands, Conoco, Imperial Oil, Mocal Energy, Murphy Oil and Nexen. On the Toronto stock market early Friday, the trust's units rose 35 cents to $36.95.

To: bill who wrote (4203)	9/14/2002 4:05:43 PM
From: Scott Mc	Respond to of 11633

Bill, looks like you made some good decisions, some of the pullback on PWI may be due to the consolidation as well. Forgetting taxes I suspect that there is money to be made hopping between the oil and gas trust, looking behind the distributions it is fairly easy to determine relative valuations and then when these valuations get out of wack move to the cheapest one. It also seems that anytime there is a new share offering is a good time to buy shares in the respective company. Scott Re INZ, I know there are a number of similar "stock trusts" that have cut their distributions recently and dropped like rocks, there may be some opportunities there but I haven't looked.

To: bill who wrote (4203)	9/15/2002 12:14:27 AM
From: russet	Read Replies (2) \| Respond to of 11633

PWI.un,...yield $0.40 * 12 months / $25.25 * 100% = 19.0%,...one of the highest of all royalty trusts. They are locking in some good future prices for gas and oil right now for the next year, so may keep this dividend for the current year. How much lower can it go? I think too many people view oil and gas royalty trusts like oil and gas stocks,...which really they are not. They have the best quality reserves, and buy those reserves at a considerable discount to future cashflows. Most fields the reserves are in have considerable potential to increase in value with future drilling and re-working of existing wells. This is a play on the future,...if you think oil and gas prices will significantly decline in the next 10 years, ignore oil and gas trusts,...but if you think the prices will level out or increase and you are being paid 15-20% to hold,...the decision is simple unless you think you can consistently make 20% per year for the next 10 years in something else. If you can make more,...please share that knowledge with the rest of us.

To: bill who wrote (4203)	9/15/2002 4:42:47 AM
From: Peter W. Panchyshyn	Respond to of 11633

Now, this debate about technique is doing some good. ------- Real debate is what we are all after. Real debate brings real results. The problem is that this really hasn't been a real debate. Because the trading side is a little lax in providing real world past numbers and a testable strategy ----------- It is forcing me to look at some of my decisions to see if they could have been better. I owned PWI.UN. I sold it at 7.08. I didn't do it out of panic. I had read three quite negative reports and while I liked the dividends, I didn't care for the things I was reading. AVN.UN, on the other hand, had a very positive, outperform report. I have limited funds so that to buy, I often have to sell. I, therefore, have to take into account the cost of the buying and selling. ------ To be sure individual personal situations and preferences have an impact. The trouble with reports is that many times they are old news. They don't tell what the company will do or has planned to counter things. One case of this was in regards to PGF.UN. Reports came out about its high debt levels which many were concerned about. No mention anywheres (but deep inside PGF own releases itself) was there the news they were planning interest rate swaps. Effectively taking 12%+ long term rates down to todays levels 4% to 5%. Making the whole worry about debt levels and reported rates a nonissue for the future--------------