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

To: a.handbag. who wrote (7008)	5/13/2004 2:22:18 AM
From: Michael Watkins	Respond to of 11633

Until very recently, few commentators or analysts or companies were even acknowledging that the CAD was weakening - they are still looking at it through last years rear view mirror. Since the low (high in CAD terms) of early 2004, the USDCAD has moved from 1.2679 to (real time here) 1.3929 and barely a ripple in the community. Factor that into earnings... If all these currency pairs break out, the USD is going to ramp strongly here for a bit. Not good for Gold unless they can shrug the inverse relationship off in a hurry. Comps are going to be easier this next quarter for some manufacturers, oil, etc.

To: a.handbag. who wrote (7008)	5/13/2004 3:49:49 AM
From: energyplay	Read Replies (3) \| Respond to of 11633

You're right, the big picture is NG has gone from about $4.00 USD to $6.30 USD in the past year - over 50%, and still climbing. USD/CAD range is about 10%. With the fixed operating costs around 2.00 - 3.00, there's lots of leverage here. Looking back, it will be obvious that the way to win is to - 1) Buy a diverse assortment of royalty trusts, preferably at favorable prices. 2) Hold on and don't sell , at least until you qualify for long term capital gains. 3) Possibly re invest distributions in more royalty trusts until prices become too high. 4) Hold on until price goes towards the absurd side...think dot com !