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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (60262)2/10/2005 1:03:16 PM
From: energyplay  Read Replies (1) | Respond to of 74559
 
Jay - With ERF, there is the possibility of buying or selling options....

Think NEM.

Of course, this option market is not a big or liquid as NEM's.

I think you could get a nice additonal return, and most of it will tend to be non-correlated with most of your other investments.

****

I still have lots of Paramount, becasue I am still expecting compensation from Alberta, and becaues Chuck Schwab won't let me buy ES or EN. I have ES in my Fidelity accounts.

For the rest, Spotted Cat, Tommaso, Taikun, Malcolm, KyrosL and many others will have a better view than me.

Getting the leverage from EN or EN is a good deal.

***********

There is are alos two insurance characteristics to energy trusts:

1) Blow up in the Middle East cause oil to soar. That's obvious.

2) Recession / Depression. This takes a little longer -with a depression, oil and gas prices drop sharply. Drilling then decilnes. Since Depletion continues, in a few months to a year, the price of energy will recover (not 100%). The value of getting cash every month or quarter in a depression is very high.