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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (20486)	1/19/2005 9:40:57 PM
From: Spekulatius	Read Replies (1) \| Respond to of 78704

re BPT :Timbabear - to be fair, the 10k data is a little stale since it is based on an oil price of 32$ or thereabout. The tailend of the production can be capped by the adjusted chargeable costs which are subtracted from the oil revenue. If higher prices continue to exist, the reserve number could be adjusted upwards, however on the other hand the 5-6M barrel lifted in 2004 will be subtracted from the reserves as well. This makes the valuation of BPT more difficult. Yet, so far i have seen analysis using various methods that suggest that most energy trust are overvalued, at least compared to E&P stocks. Most investors in these funds appear to be retail "yield chasers" that either live by the bigger fool theory (that they can magically bail out without incurring losses once the yield start to drop) and that plainly refuse the fact that these funds are not bonds as there will be no principle returned after once the reserves are exploited. I have yet to see a detailed analysis that suggest that a return on investment can be achieved under reasonable assumptions.