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

To: Paul Senior who wrote (28117)	9/19/2007 9:27:42 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78748

Paul, AAV is 75% NG and NG prices are low right now in in particular in Canada. They only made 0.04 Can$ last quarter which is way more than the dividend. This means that the 15% dividend is mostly a return of capital in my opinion- With Oil&Gas companies most of the cash flow needs to flow back into operations to keep reserves constant and what AAV is fueling back is not enough. So reserves/share are shrinking which is why AAV resorted to an acquisition. This does not help NAV/share but is does keep management employed.