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To: smolejv@gmx.net who wrote (33480)	5/11/2003 2:51:28 AM
From: Cogito Ergo Sum	Read Replies (1) \| Respond to of 74559

"pass-through earnings" Think of Flow through shares in mining and O&G exploration companies. These O&G are often great held in non registered accounts as they turn dividend / interest payments into capital gains taxed at a lower rate. For regular business trusts like my sardine company or cold storage it is typically better to hold in a registered (tax deferred) account as you don't get much of this benefit. I think I mentioned this ROC (return of capital) somewheres in one of the posts) regards Kastel EDIT aqs they say on the trusts board It's all about Income

To: smolejv@gmx.net who wrote (33480)	5/11/2003 6:21:25 AM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

Hello DJ, Here are my interim conclusions on Enerplus: Toronto quote uk.finance.yahoo.com NYSE quote uk.finance.yahoo.com Company profile oilpatchupdates.com The data trove sedar.com According to my Royalty Trust Model achamchen.com (this model is done for the use of all who wants to use it. I do not warranty its accuracy, usefulness, or its 'free of virus' state. Users beware), Enerplus, at approximately CAD 29.60/unit current market price, is valued to yield an annualized return of 6%. This assumes steady state exploitation of its existing reserves without any acquisition or divestment, and assumes that realized gas price and operating cost both increase at an annual rate of 2%. The trust is terminated in 2011 when its net asset value is zero (total assets less total liabilities), even though it still holds 5 remaining years of reserves and huge pieces of empty land at that time. An one-off 10% rise in energy price will ramp annualized return to 8%. So, the bottom line is that Enerplus is fully price, or, in fact priced quite high, due to its desirability, i.e. transparency, simplicity, perceived yield, and the implicit embedded call option on natural gas pricing. The game is now clear: (a) Sense the energy pricing trends (gas/oil) as they are pushed and pulled by the power of economics (b) Watch the unit price of Enerplus as it wobbles with the mysterious forces of finance (c) Buy or sell accordingly Chugs, Jay