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

To: Taikun who wrote (7717)	9/30/2004 5:35:49 PM
From: fmikehugo	Read Replies (1) \| Respond to of 11633

Takun - If I were in RTs for capital apprpeciation, I'd be out now. But I'm in for income, and in a secular bear market with low interest rates there are no simply no alternatives. In RTs my after tax yield on invested capital is 10.5%, which supports a certain standard of living. I don't really care whether the underlying PPS is inflated as long as oil and gas prices will support the current yield.

To: Taikun who wrote (7717)	9/30/2004 8:29:24 PM
From: energyplay	Read Replies (1) \| Respond to of 11633

<Some people want to 'belong' much more than they want to make money. Much of this insight came Jack Swager's Market Wizards book, specifically the interview with a Mr. Larry Seydotka, a very private trader, who turned 30,000 into > 2 million in about 10 years. Mr. Seydotka's had a comment - "Most people get what they want out of the market" In my case, I like to have my superior macro economic insight confirmed. That can occasionally be expensive - like when I shorted tech stocks in the summer of 1999. ************ Right now, I've been looking at the last quarterly report for ERF, and trying to figure the affect of higher oil prices, and the dip and recovery in NG prices for ERF. ERF is about 70% gas, 30% oil on a BOE basis last quarter. They have some oil projects they might be able to quickly accelerate. They were getting about $38 CDN per barrel. OPTIONS ARE AVAILABLE ON ERF** I can get options in one of my IRA accounts, giving me more leverage. In taxable accounts, if ERF goes sky high, instead of selling the option, I can exercise it, pay the strike prices to get the stock with the nice tax qualifed dividend, and wait a year for the gain to qualify for long term tax treatment. The ERF is marginable, also, making it easier for me to buy a large number of shares by exercising calls. Since ERF has relatively low volitility, the option premiium has not been too high (it's increasing now). Buying ERF now might be useful for those looking to do a buy-write, like Jay. Buy ERF, maybe wait a few days (Wed or THursday next week should do) then sell an out of the money call that's several months out. Meanwhile, collect dividends. Risk is something bad happens to dual listed trusts (possibly from Canadian government) which out weighs the good things due to higher energy prices AND increasing popularity. Does ERF have a DRIP plan for Canadians ? Might pick up an extra few percent that way also.... Many possibilites here, I 've just touched the surface.