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

To: aerosappy who wrote (32175)	5/12/2004 10:16:33 AM
From: Tommaso	Read Replies (1) \| Respond to of 206203

One of my concerns is that in a severe market decline, energy stocks can get dragged down along with everything else. One of my first stock purchases was Royal Dutch, back about 1974, when it was selling at a P/E of 3.5! Because of the "oil shock," even the best companies had been knocked way down. At the price I paid, the yield on RD, a few years later, was something like 40% of what I paid. But I worry about holding any oil companies right now. I am sticking with Canroys for income (currently 18% yield in the case of Energy Split, the leveraged closed end fund). I think rising prices of oil and gas may keep these yields so high that the trusts may not be hit so hard by a general market collapse. Indeed, should that happen, I will be cashing in my bear market puts and funds and buying more of the trusts. Incidentally, "pro-war and anti-war debates" is not exactly the trouble. It's more pro-torture and anti-torture.