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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (32929)	5/2/2003 10:40:29 PM
From: Cogito Ergo Sum	Respond to of 74559

If AVN did a hedge at $8 CDN No, sorry ep, I'm not being clear on the hedging. It was Paramount that landed that tasty hedge @ 8$. AVN has done some collars I think in the 5 to 7 range (going from memory here) and of course this is the recent stuff I mean. I find AVN has a very good track record of reading the market so far. They were a lot more oily as Search Energy but apparently here also they read the NG trend very well. Finally, even though I like it a lot I'd dump them in a minute if I thought they were losing their touch :o) If they were so great at hedging, which is commodity speculation, Well there's the rub maybe with them. I'd say the hedging was great enough to make me comfortable holding up and down and accumulating but now (I need to review all my stuff again) I think they are in line for bigger bonuses soooooo.. we'll see.. OTOH NCF (NCN) did great during the NG bubble ( a portfolio star for me) because it didn't hedge and so it goes like with gold stocks.. when the bull is running you don't want hedges in its path :o) I've been accumulating these since 2000 so I still have a bit of a bunker mentality re: hedging. Too much may be my undoing eh! regards Kastel

To: energyplay who wrote (32929)	5/3/2003 12:12:17 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 74559

Advantage hedging might turn out to on the low side: As at April 2, 2003 the Fund has the following costless collar contracts outstanding for the period May, 2003 to August, 2003: Natural gas (mcf/d) Floor ($/mcf) Ceiling($/mcf) ----------------------------------------------------------- 10,500 mcf/d $ 5.78 $ 8.03 10,500 mcf/d $ 6.04 $ 8.51 10,500 mcf/d $ 6.30 $ 8.30 Paramount hedging: PET also announces that it has fixed the price on 35,000 GJ/d of its natural gas production for the month of April 2003 at a price of $10.20 per GJ. The Trust intends to enter into additional price stabilization arrangements for 30-50 percent of its production on an ongoing basis as favourable market conditions present themselves. :o) Looks like Paramount may become my new champs, sorry I don't have any idea why I thought it was 8$ unless I was confusing it with AVN. I'm working too much. Sorry for any confusion. regards Kastel