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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: GREENLAW4-7 who wrote (18044)	2/9/2003 12:22:37 PM
From: whitepine	Respond to of 206121

Green, You wrote<So this gives me plenty of time to buy equities to take advantage of a possible surge next fall. Currently I don't see any rush to go long these issues.> Yes, but by then, the story will be, "Oh the ST price of NG will only lead to more drilling and a collapse, so there really is no point going long these positions." In short, there will never be a rationale for buying OSX NG stocks. Too many made errors in the last cycle and buyers were crushed. My response. Small positions, but I remain focused on Royalty Trusts. They pay! They will continue to pay. Investors are more likely to be attracted to these equities compared to stocks where P/E expands and compresses with no real payment to holders. In a sense, I agree with you. Why own any OSX stock? Aside from the limited prospect of some firm finding another Ladyfern, the risks are high and no real returns to the equity owner, LT. When prices/incomes/profits rise, what does it matter to the average shareholder? Dividends are weak and there is always the counter argument> these positions will always fall when drilling activity picks up, so why even risk potential downside. With royalty trusts, the distributions are sent to holders. As NG climbs, or even remains constant, earnings and checks will continue. If there is capital appreciation, fine, but distributions beat MM returns. Not pushing this view, just offering observations from my limited and frigid vantage point. whitepine